Xencor(US:XNCR)2020-08-04 21:56Clinical Development - The company has 17 antibody and cytokine drug candidates in clinical trials, with additional candidates expected to enter the clinic within the next year[127] - The company is currently enrolling patients in six clinical programs, with some experiencing slower patient enrollment due to COVID-19[123] - The company is advancing three CD3 bispecific antibody candidates in Phase 1 studies: vibecotamab, plamotamab, and tidutamab[128] - XmAb20717, a TME activator candidate, is currently enrolling patients in a Phase 1 study and has shown promising initial dose-escalation data[134] Financial Performance - Total revenues for the three months ended June 30, 2020, were $13.1 million, a decrease of $6.4 million compared to $19.5 million in the same period in 2019[149] - Total revenues for the six months ended June 30, 2020, were $45.5 million, a decrease of $85.9 million compared to $131.4 million in the same period of 2019[156] - The net loss for the three months ended June 30, 2020, was $35.0 million, compared to a net loss of $16.0 million in the same period in 2019, reflecting an increase of 118.8%[149] - Net loss for the six months ended June 30, 2020, was $43.0 million, compared to a net income of $64.0 million in 2019, a change of $107.0 million[156] Revenue Sources - Revenue from existing partnerships, including Alexion and Gilead, was recognized at $3.8 million and $7.5 million, respectively, for the quarter ended June 30, 2020[124] - The company received total payments of $9.6 million and $13.5 million from licensing transactions with Aimmune and Gilead in 2020[138] - Research collaboration revenue decreased from $14.4 million in Q2 2019 to $1.5 million in Q2 2020, a decline of 91.6%[149] - Licensing revenue increased to $7.5 million in Q2 2020, compared to no licensing revenue in Q2 2019[149] - Research collaboration revenue decreased from $14.7 million in 2019 to $2.4 million in 2020, a decline of $12.3 million[156] - Licensing revenue fell from $111.6 million in 2019 to $23.1 million in 2020, a decrease of $88.5 million[156] Expenses - Research and development expenses rose to $43.5 million in Q2 2020, up $10.2 million from $33.3 million in Q2 2019, primarily due to increased spending on plamotamab and XmAb20717 programs[151][152] - Operating expenses increased by $19.0 million, from $72.8 million in 2019 to $91.8 million in 2020[156] - Research and development expenses rose by $15.9 million, totaling $77.4 million in 2020 compared to $61.5 million in 2019[159] - General and administrative expenses increased to $7.2 million in Q2 2020, up $1.4 million from $5.8 million in Q2 2019, mainly due to higher staffing and professional fees[153][154] - General and administrative expenses increased by $3.1 million, from $11.3 million in 2019 to $14.4 million in 2020[161] Cash Position - As of June 30, 2020, the company had $587.4 million in cash, cash equivalents, and marketable securities, down from $601.3 million at the end of 2019[169] - Cash used in operating activities was $18.2 million in 2020, a decrease of $108.7 million compared to cash provided of $90.4 million in 2019[165] - The company expects existing cash and potential milestone payments to fund operations into 2024, although this is subject to uncertainty due to ongoing clinical development and the COVID-19 pandemic[172] Intellectual Property - The company has over 1,000 issued and pending patents worldwide to protect its XmAb technology platform and drug candidates[146] Collaborations and Milestones - The collaboration with Atreca involves a three-year research program to develop CD3 bispecific antibodies, with both companies sharing 50% of costs and profits[139] - The FDA approved MorphoSys' Monjuvi (tafasitamab-cxix) in July 2020, which will result in a $25.0 million milestone payment to the company and potential royalties on net sales[146] Tax and Receivables - The company has recorded a receivable of $0.8 million related to the corporate minimum tax credit, which will be refunded in 2020[120] - The company is eligible to receive a mid-single digit royalty on net sales of approved products for the VIR-7831 candidate developed by partner Vir Biotechnology[124]