Xencor Reports Third Quarter 2025 Financial Results
PASADENA, Calif.--( BUSINESS WIRE)--Xencor, Inc. (NASDAQ:XNCR), a clinical-stage biopharmaceutical company developing engineered antibodies for the treatment of cancer and autoimmune diseases, today reported financial results for the third quarter ended September 30, 2025 and provided recent business and clinical program updates.
“Xencor’s two novel, first-in-class, CD3 T-cell engaging bispecific antibodies, XmAb819 and XmAb541, have demonstrated compelling clinical data in advanced clear cell renal cell carcinoma and advanced gynecologic and germ cell tumors, respectively. As we continue to advance through dose escalation and cohort expansions in Phase 1 studies evaluating these programs, we expect to identify recommended Phase 3 doses during 2026 to support initiation of pivotal studies during 2027,” said Bassil Dahiyat, Ph.D., president and chief executive officer at Xencor. “The accelerating tempo of clinical development extends to our autoimmune portfolio. In the third quarter we dosed the first patient in our Phase 2b XENITH-UC study of XmAb942, our potential best-in-class antibody targeting TL1A for inflammatory bowel disease, to rapidly identify a pivotal dose regimen for those with moderately to severely active ulcerative colitis, and we dosed the first patient in our Phase 1b study of plamotamab in rheumatoid arthritis. We remain on-track to start clinical studies of XmAb657, our B-cell depleting TCE for the treatment of patients with autoimmune disease by year end 2025, and our lead TL1A x IL23p19 bispecific antibody, now designated XmAb412, in 2026.”
Clinical Program Updates
Oncology
Autoimmune & Inflammatory Diseases
Recent Partnership Developments
Financial Guidance: Based on current operating plans, Xencor expects to end 2025 with between $570 million and $590 million in cash, cash equivalents and marketable debt securities, and to have cash to fund research and development programs and operations into 2028.
Financial Results for the Third Quarter Ended September 30, 2025
Cash, cash equivalents and marketable debt securities totaled $633.9 million as of September 30, 2025, compared to $706.7 million as of December 31, 2024.
Revenue for the third quarter ended September 30, 2025 was $21.0 million, compared to $17.8 million for the same period in 2024. Revenue earned in the third quarters of 2025 and 2024 was primarily non-cash royalty revenue from Alexion and Incyte.
Research and development (R&D) expenses for the third quarter ended September 30, 2025 were $54.4 million, compared to $58.2 million for the same period in 2024. Decreased R&D spending for the third quarter of 2025 compared to 2024 reflects lower stock-based compensation and lower costs related to programs that are winding down or have been terminated.
General and administrative (G&A) expenses for the third quarter ended September 30, 2025 were $14.2 million, compared to $14.8 million for the same period in 2024. G&A spending for the third quarter of 2025 remained relatively consistent compared to the same period in 2024.
Other income, net, for the third quarter ended September 30, 2025 was $41.5 million, compared to $7.8 million for the same period in 2024. The increase for the third quarter of 2025, compared to 2024, is primarily driven by unrealized gains from marketable equity securities.
Net loss attributable to Xencor for the third quarter ended September 30, 2025 was $6.0 million, or $(0.08) on a fully diluted per share basis, compared to net loss of $46.3 million, or $(0.72) on a fully diluted per share basis, for the same period in 2024.
About Xencor
Xencor is a clinical-stage biopharmaceutical company developing engineered antibodies for the treatment of patients with cancer and autoimmune diseases. More than 20 candidates engineered with Xencor's XmAb® technology are in clinical development, and multiple XmAb medicines are marketed by partners. Xencor's XmAb engineering technology enables small changes to a protein’s structure that result in new mechanisms of therapeutic action. For more information, please visit www.xencor.com.
Forward-Looking Statements
Certain statements contained in this press release may constitute forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements that are not purely statements of historical fact, and can generally be identified by the use of words such as “potential,” “can,” “will,” “plan,” “may,” “could,” “would,” “expect,” “anticipate,” “seek,” “look forward,” “believe,” “committed,” “investigational,” “indicates,” “supports,” and similar terms, or by express or implied discussions relating to Xencor’s business, including, but not limited to, statements regarding expectations for clinical progress, planned presentations of clinical data, new XmAb candidates and programs, planned and in process clinical trials, financial guidance, the quotations from Xencor's president and chief executive officer, and other statements that are not purely statements of historical fact. Such statements are made on the basis of the current beliefs, expectations, and assumptions of the management of Xencor and are subject to significant known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements and the timing of events to be materially different from those implied by such statements, and therefore these statements should not be read as guarantees of future performance or results. Such risks include, without limitation, the risks associated with the process of discovering, developing, manufacturing and commercializing drugs that are safe and effective for use as human therapeutics, the ability of publicly disclosed preliminary clinical trial data to support continued clinical development and regulatory approval for specific treatments, the risk of loss of key members of management, the risk that the fair value of our marketable equity securities will decline and the risks, uncertainties and other factors described under the heading “Risk Factors” in Xencor's annual report on Form 10-K for the year ended December 31, 2024 as well as Xencor's subsequent filings with the Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Xencor undertakes no obligation to revise or update these forward-looking statements to reflect events or circumstances after the date hereof, except as required by law.
Xencor, Inc.
Selected Consolidated Balance Sheet Data
(in thousands)
September 30,
December 31,
2025
2024
(unaudited)
Cash, cash equivalents and marketable debt securities - current
$
386,784
$
449,846
Other current assets
131,657
127,755
Marketable debt securities - long term
247,158
256,833
Other long-term assets
103,212
117,511
Total assets
$
868,811
$
951,945
Total current liabilities
$
86,485
87,432
Liabilities related to the sales of future royalties - long term
87,776
115,159
Other long term liabilities
69,234
75,328
Total liabilities
243,495
277,919
Total stockholders' equity
625,316
674,026
Total liabilities and stockholders’ equity
$
868,811
$
951,945
Xencor, Inc.
Consolidated Statements of Operations and Comprehensive Loss
(in thousands, except per share amounts)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2025
2024
2025
2024
(Unaudited)
(Unaudited)
Revenue
Collaborations, milestones, and royalties
$
20,999
$
17,796
$
97,339
$
57,700
Operating expenses:
Research and development
54,367
58,226
174,610
176,630
General and administrative
14,151
14,767
46,603
46,300
Total operating expenses
68,518
72,993
221,213
222,930
Operating loss
(47,519
)
(55,197
)
(123,874
)
(165,230
)
Total other income (expense)
41,492
7,755
38,507
(25,110
)
Loss before income tax expense and noncontrolling interest
(6,027
)
(47,442
)
(85,367
)
(190,340
)
Income tax expense
—
—
117
—
Net loss including noncontrolling interest
(6,027
)
(47,442
)
(85,484
)
(190,340
)
Net loss attributable to noncontrolling interest
—
(1,154
)
(214
)
(3,275
)
Net loss attributable to Xencor, Inc.
$
(6,027
)
$
(46,288
)
$
(85,270
)
$
(187,065
)
Net loss per share attributable to Xencor, Inc. (basic and diluted)
$
(0.08
)
$
(0.72
)
$
(1.15
)
$
(3.00
)
Weighted-average shares used in calculating net loss per share (basic and diluted)
74,413
64,023
74,122
62,310
Other comprehensive income (loss):
Net unrealized gain on marketable debt securities
900
2,452
1,821
510
Comprehensive loss
(5,127
)
(44,990
)
(83,663
)
(189,830
)
Less: comprehensive loss attributable to the noncontrolling interest
—
(1,154
)
(214
)
(3,275
)
Comprehensive loss attributable to Xencor, Inc.
$
(5,127
)
$
(43,836
)
$
(83,449
)
$
(186,555
)