Xencor, Inc. Q2 FY2023 earnings call

Partnerships

• Ultomiris label expands in EU and Japan, earning $11.2 million in royalties in Q2, with anticipation of earning remaining $20 million in sales-based milestone payments this year. Enhanced patent coverage and term in multiple geographies.
• CD28 bispecific collaborations with Janssen Biotech progressing well for prostate and B-cell targeted programs, with anticipation of both advancing in clinical testing.
• Anticipate data from Amgen's study of AMG 509 (xaluritamig) in prostate cancer at ESMO.

Wholly Owned Clinical Portfolio

• Vudalimab moving to frontline treatment for locally advanced or metastatic non-squamous non-small cell lung cancer (NSCLC), with study preparation ongoing and planned to start by end of year. Anticipate data from metastatic castrate-resistant prostate cancer studies in early 2024.
• XmAb819 (ENPP3-targeted CD3 bispecific) and XmAb808 (B7H3-targeted CD28 bispecific) have strong enrollment and dose escalation. Plan to submit IND for XmAb541 (CLDN6-targeted CD3 bispecific) later this year and second internal CD28-bispecific in 2024.
• Initiated Phase 1 study for XmAb662 (engineered potency reduced IL12 Fc fusion protein) in oncology.

No detailed financial performance for product segments provided in the transcript.

Forward-Looking Statements

• Anticipate earning remaining $20 million in sales-based milestone payments from Ultomiris this year.
• Expect data from Amgen's study of AMG 509 in prostate cancer at ESMO.
• Plan to start vudalimab NSCLC study by end of year; data from metastatic castrate-resistant prostate cancer studies in early 2024.
• Intend to submit IND for XmAb541 later this year and second internal CD28-bispecific in 2024.
• Expect no partnership revenues from setrusumab this year.

Forward-looking statements are subject to known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from those anticipated, including factors in the Risk Factors section of Xencor's most recently filed annual report on Form 10-K and quarterly report on Form 10-Q.

Q: Mara Goldstein asked about the [indiscernible] mix, advancement of Amgen's program, and vudalimab prostate cancer results.

A: Bassil Dahiyat discussed Amgen's program advancement, and Nancy Valente mentioned vudalimab prostate cancer data expected in early 2024.

Q: Etzer Darout inquired about XmAb819 investigator interest, PD-1 CTLA-4 constructs, and lung cancer differentiation.

A: Bassil Dahiyat and Nancy Valente talked about XmAb819's kidney cancer focus and vudalimab's lung cancer rationale.

Q: Edward Tenthoff asked about partnership plans for the lung cancer study.

A: Bassil Dahiyat discussed focusing on building value in the lung cancer study before considering partnership.

Q: Brian Chang questioned vudalimab lung cancer study not including monotherapy and partnership revenues.

A: Bassil Dahiyat addressed setrusumab revenues, and Nancy Valente explained the lung cancer study rationale.

Q: Alec Stranahan asked about vudalimab lung cancer study monotherapy exclusion and partnership revenues.

A: Bassil Dahiyat discussed setrusumab revenues, and Nancy Valente provided the lung cancer study rationale.

Q: Kaveri Pohlman asked about XmAb819 kidney cancer attractiveness, T cells after checkpoint inhibitors, and plamotamab safety.

A: John Desjarlais and Nancy Valente discussed ENPP3 in kidney cancer and plamotamab safety goals.

Q: Charles Zhu inquired about vudalimab lung cancer study chemotherapy backbone and XmAb564 CD25 expression.

A: Nancy Valente spoke about the chemotherapy backbone, and John Desjarlais addressed XmAb564 CD25 expression.

Q: Matt Kemper asked about XmAb662 study tumor types.

A: John Desjarlais discussed XmAb662 exploring various tumor types.

Q: Boris Peaker asked about vudalimab lung cancer safety vs competitors and XmAb564 indication.

A: Bassil Dahiyat and Nancy Valente discussed vudalimab safety and XmAb564 indication considerations.

Q: Anish Nikhanj asked about plamotamab positioning and XmAb564 lines of care.

A: Bassil Dahiyat addressed plamotamab positioning, and Nancy Valente provided XmAb564 indication considerations.

Q: Alex asked about ENPP3 program vs Astellas ADC.

A: John Desjarlais discussed ENPP3 program validation and Astellas ADC shortcomings.