Financial Performance Overview

Xencor is a clinical-stage biopharmaceutical company developing engineered monoclonal antibodies for the treatment of cancer, autoimmune disease, and other conditions. As of March 31, 2024, Xencor had $646.7 million in cash and investments. The company expects this cash will fund operations into 2027.

Xencor has not yet generated revenue from product sales. Revenues for the first quarter of 2024 were $12.8 million, down from $19 million in the first quarter of 2023. Revenues were primarily from royalties the company receives related to its partners’ drug products.

Research and development expenses for the quarter were $56.9 million, compared to $65.6 million for the same period in 2023. The decreased spending reflects winding down some early-stage programs to focus resources on more advanced drug candidates.

Net loss for the first quarter of 2024 was $68 million, or $1.10 per share, compared to a net loss of $60.8 million, or $0.99 per share, for the same period in 2023.

Pipeline Highlights

Xencor has several bispecific antibody and cytokine programs in clinical testing:

• Vudalimab - Being tested in metastatic castration-resistant prostate cancer and non-small cell lung cancer. Initial results showed anti-tumor activity. Further studies ongoing.

• XmAb819 - Targets kidney cancer. Phase 1 study enrolling patients.

• XmAb808 - Novel “CD28” bispecific platform. Phase 1 study ongoing in combination with Keytruda.

• XmAb306 - Partnered with Genentech. Being tested in multiple blood cancers. Xencor reducing involvement and will receive royalties.

Promising early-stage programs are also advancing, including new CD28 bispecific antibodies being developed by partners Janssen and Johnson & Johnson.

Financial Position

Xencor has no debt and sufficient cash to fund operations for approximately 3 more years. Key financial metrics are summarized below:

As of 3/31/2024	As of 12/31/2023
Cash & investments	$646.7 million
Working capital	$588.7 million
Stockholders’ equity	$567.1 million

Business Strategy

Xencor’s strategy involves:

• Advancing pipeline programs into later stage clinical studies
• Expanding the pipeline by developing additional novel bispecific antibody drug candidates
• Partnering with pharmaceutical companies to co-develop programs and receive milestones & royalties
• Licensing Xencor’s antibody engineering technologies to partners to receive fees & royalties

This approach allows Xencor to sustain operations while retaining significant economic interest in its portfolio of novel drug candidates.

Future Outlook

Xencor faces risks typical of clinical-stage biotech companies developing novel medicines. Its product candidates require significant additional testing and regulatory approvals before they can be commercialized.

However, with a strong cash position, multiple shots on goal from its bispecific antibody pipeline, revenue from partnerships, and a proven antibody engineering platform, Xencor is well positioned to continue advancing its pipeline over the next several years.

The company expects continued progress from mid-stage studies for vudalimab, XmAb819, XmAb808 and other programs. This pipeline has potential to drive significant growth in value for shareholders over the long term.