Xencor Reports Significant Revenue Decline and Increased Losses in Q3 2024

Xencor, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing significant changes in revenue and losses compared to the previous fiscal period. Total revenues for the third quarter were $10.7 million, a substantial decrease of $48.5 million from $59.2 million in the same period in 2023. For the nine months ended September 30, 2024, revenues totaled $40.5 million, down $83.1 million from $123.6 million in the prior year. The decline in revenue was primarily attributed to reduced milestone and royalty revenues from collaborations, particularly with Alexion and Janssen.

Operating expenses for the third quarter of 2024 were $72.993 million, slightly lower than $77.434 million in the same quarter of 2023. However, the company reported a loss from operations of $62.283 million for the third quarter, compared to a loss of $18.270 million in the same period last year. The net loss attributable to Xencor for the third quarter was $45.143 million, an increase from $24.269 million in 2023. For the nine-month period, the net loss was $182.414 million, compared to $106.986 million in the previous year.

Research and development expenses decreased to $58.2 million in the third quarter of 2024 from $64.9 million in the same quarter of 2023, reflecting reduced wind-down costs of terminated programs. However, spending increased on specific ongoing programs, including Vudalimab and XmAb819. General and administrative expenses rose by $2.3 million, primarily due to increased staffing and professional fees.

On the balance sheet, total assets increased to $983.635 million as of September 30, 2024, up from $952.692 million at the end of 2023. However, cash and cash equivalents saw a significant decline, falling to $29.031 million from $53.790 million. Total stockholders' equity attributable to Xencor rose to $723.836 million, compared to $668.796 million at the end of 2023.

Strategically, Xencor completed a public offering of 8,093,712 shares in September 2024, generating net proceeds of $189.2 million. The company continues to focus on its clinical-stage biopharmaceutical initiatives, with several XmAb candidates in various stages of development. Notably, the company is involved in ongoing collaborations and licensing agreements, including a recent agreement with Shanghai Mabgeek Biotech Co., Ltd., which contributed to its revenue for the nine months ended September 30, 2024.