Xencor Inc

Xencor Inc. reported a significant increase in net loss for the first quarter of 2026, reaching $(128.9) million, compared to $(48.4) million in the same period last year. Total revenue plummeted 86% to $4.5 million, largely impacted by a $6.6 million reduction in royalty revenue due to a dispute with Alexion regarding U.S. sales of Ultomiris. The company also recognized substantial net losses of $(51.9) million on marketable equity securities, primarily from its investment in Zenas BioPharma, Inc.

Xencor reported a net loss of $128.9 million, or $(1.71) per share, for Q1 2026, significantly wider than the $48.4 million loss in Q1 2025. Revenue decreased to $4.5 million from $32.7 million year-over-year, primarily due to a reduction from disputed Alexion royalties and lower milestone revenue. Despite the financial decline, the company highlighted significant progress in its clinical pipeline, including upcoming data presentations for XmAb819 and XmAb541, and the planned initiation of a first-in-human study for XmAb412 in Q3 2026. Xencor expects to end 2026 with $380-$400 million in cash, funding operations into mid-2028.

Xencor Inc. reported positive final results from its Phase 1 study of XmAb942, a long-acting anti-TL1A antibody for inflammatory bowel disease, presented at Digestive Disease Week 2026. The data supports XmAb942's potential as a best-in-class treatment with a convenient 12-week subcutaneous dosing schedule. Additionally, the company presented strong preclinical characterization data for XmAb412, a novel TL1A x IL23p19 bispecific antibody, which is expected to begin its first-in-human study in Q3 2026. Enrollment for the global Phase 2b XENITH-UC study of XmAb942 is on track for results in 2H 2027.

Xencor Inc. announced its 2026 Annual Meeting of Stockholders on June 16, 2026, where key proposals include the election of nine directors, ratification of KPMG LLP as auditor, an advisory vote on executive compensation, and a significant amendment to increase authorized shares for its 2023 Equity Incentive Plan by 4,000,000 shares. The company also provided a business update, highlighting encouraging early and mid-stage clinical data for its oncology candidates XmAb819 and XmAb541, and progress in autoimmune disease programs like XmAb942. Xencor reported a strong financial position, ending 2025 with $610.8 million in cash.

Xencor Inc. has adopted a new Executive Severance Policy, effective for seven years, outlining severance benefits for Vice Presidents and above, excluding the CEO. The policy details benefits for involuntary termination without Cause or resignation for Good Reason, both under standard circumstances and in connection with a Change in Control. Benefits include base salary, COBRA premiums, bonus compensation, and equity award acceleration, all contingent on the execution of a release of claims.