Xencor Inc Q1 FY2022 earnings call

Termination of Programs: Bassil Dahiyat announced the termination of internal development of two Phase 1 programs, XmAb841 and tidutamab, to focus resources on more promising clinical programs. ### Licensing and Partnerships: Leveraged the XmAb Fc domain through licensing transactions, such as Alexion AstraZeneca's ULTOMIRIS using Xtend Fc for longer half-life and royalty revenue from sotrovimab. Partnerships include Amgen's AMG 509 and Astellas' ASP 2138. ### Clinical Programs: Allen Yang reviewed various clinical programs, including plamotamab in a Phase 2 study, ENPP3 targeting CD3 bispecific XmAb-819, tumor microenvironment activators like vudalimab and XmAb104, cytokines (XmAb 306, XmAb 564, XmAb 662), and the CD28 bispecific antibody XmAb 808.

In the first quarter, Xencor received $83.7 million in revenue from partnerships. This breakdown includes $78.7 million in royalties and $5 million in expected milestone payments. Approximately $70 million of the royalty revenue was from the Vir partnership related to sales of the COVID antibody sotrovimab.

Royalty Revenue: Royalty revenue from sotrovimab is expected to drop substantially next quarter and beyond due to rapidly shifting COVID variants. ### Cash Estimate: Estimates ending 2022 with $500 million to $550 million in cash, cash equivalents, receivables, and marketable debt securities. Cash is expected to fund R&D programs and operations through the end of 2025.

COVID Impact: Rapidly shifting COVID variants could lead to a substantial drop in sotrovimab royalty revenue. ### Clinical Uncertainties: Uncertainties in clinical trial outcomes and competitive landscape affecting program advancement, including long trial durations and changing therapeutic landscapes.

Q: Jonathan Chang asked about XmAb104 data at ASCO and reasons for discontinuing tidutamab and XmAb841.

A: Bassil and Allen discussed the competitive landscape, efficacy bar, and resource allocation.

Q: Supawat Thongthip asked about Cis-targeting cytokine program and XmAb306 combinations.

A: John Desjarlais explained Cis-targeting rationale and Bassil discussed combination plans.

Q: Dane Leone asked about vudalimab data and patient data needed for go/no-go.

A: Bassil and Allen discussed early data look, safety, and subgroup studies.

Q: Charles Zhu asked about XmAb104 data and vudalimab patient data.

A: Bassil and Allen discussed competitive landscape and study design.

Q: Etzer Darout asked about XmAb104 differentiation and plamotamab data.

A: John Desjarlais and Allen discussed design differences and study phases.

Q: Xinyu Liu asked about plamotamab data and subcu formulation.

A: Bassil and Allen discussed study start and subcu phasing.

Q: Zhiqiang Shu asked about tidutamab discontinuation and IL-2 program.

A: Bassil discussed trial duration and IL-2 study status.

Q: Unidentified Analyst asked about vudalimab data and CTLA-4/LAG-3 program.

A: Bassil discussed safety data and competitive landscape.

Q: David Dai asked about vudalimab tolerability and XmAb104 biomarkers.

A: Allen and Bassil discussed tolerability and biomarker strategies.

Q: David Nierengarten asked about triple combination response rate and CR importance.

A: Bassil and Allen discussed response rates and CR goals.