Xencor Expects Cash to Reach $380M to $400M by 2026
Xenco announced that Alexion Pharmaceuticals informed Xencor that it has taken the position that the Licensee does not owe any additional royalties for sales of Ultomiris in the United States and that the Licensee does not intend to make any future payments for sales in the United States. Based on current operating plans, Xencor expects to end 2026 with between $380 million and $400 million in cash, cash equivalents and marketable debt securities, and to have sufficient cash resources to fund research and development programs and operations into mid-2028. "Xencor has reasonably assumed that the multiple licensees of our XmAb Fc domains and technologies remit payments in accordance with the terms of their respective agreements. One licensee has expressed disagreement regarding payments for net sales of Ultomiris in the United States, and we plan to work toward a resolution in this matter. Importantly, we have not observed a change in payments related to ex-U.S. sales," said Bassil Dahiyat, Ph.D., president and chief executive officer of Xencor. "We have updated our year-end cash guidance and conservatively adjust our operating runway estimate into mid-2028."
Trade with 70% Backtested Accuracy
Analyst Views on XNCR
About XNCR
About the author
Xencor Lowers Outlook After Royalty Dispute
- Stock Price Decline: Xencor (XNCR) shares fell approximately 8% on Thursday, primarily due to the company's lowered outlook following a royalty dispute with AstraZeneca's subsidiary Alexion Pharmaceuticals, indicating market concerns about future earnings.
- Royalty Revenue Adjustment: Xencor stated that Alexion has informed the company it will no longer owe additional royalties related to Ultomiris net sales in the U.S., although payments for sales outside the U.S. will continue, potentially leading to future revenue uncertainty.
- Cash Flow Forecast Downgrade: The company updated its year-end cash guidance, projecting cash, cash equivalents, and marketable debt securities to reach $380 million to $400 million by year-end, down from the previous estimate of $400 million to $430 million, reflecting a cautious outlook on future operations.
- Shortened Operating Runway: Xencor's revised operating runway forecast has also been shortened, now expected to last until mid-2028, down from prior guidance, indicating increased financial pressure on the company amid the royalty dispute.
Xencor Lowers Revenue Outlook for Ultomiris Royalties
- Revenue Outlook Revision: Xencor Inc. announced a revision of its revenue outlook for royalties tied to Ultomiris, as Alexion Pharmaceuticals stated it does not owe additional royalties on Ultomiris sales, which will directly impact Xencor's future cash flow and profitability.
- Cash Flow Forecast Adjustment: Xencor lowered its 2026 cash outlook from $400 million–$430 million to $380 million–$400 million, although it still expects its cash runway to support operations into mid-2028, indicating some financial pressure on the company.
- Analyst Perspective: William Blair holds a slightly negative view on Xencor's outlook, yet anticipates that clinical trial updates in 2026 will serve as more impactful catalysts, thus reiterating an Outperform rating, reflecting cautious optimism about the company's long-term potential.
- Technical Analysis Signals: Xencor's stock is currently trading below its 20-day and 100-day simple moving averages, indicating short-term weakness; despite an 83% increase in share price over the past 12 months, the mixed signals from RSI and MACD suggest investors should proceed with caution.
Xencor Q4 Earnings Beat Expectations Despite Revenue Decline
- Earnings Beat: Xencor reported a Q4 GAAP EPS of -$0.09, surpassing expectations by $0.50, indicating resilience in profitability despite ongoing financial challenges.
- Significant Revenue Decline: The company’s revenue of $28.24 million represents a 46.5% year-over-year decrease, missing market expectations, which may impact investor confidence in a competitive biopharmaceutical landscape.
- Strong Cash Reserves: As of December 31, 2025, Xencor held $610.8 million in cash, cash equivalents, and marketable securities, down from $706.7 million in 2024, reflecting cautious financial management amid operational challenges.
- Optimistic Partnership Outlook: The late-stage trial success of the lymphoma therapy partnered with Incyte, along with its EU approval, suggests potential growth opportunities for Xencor in drug development and market expansion.
Incyte reveals EU authorization for lymphoma treatment developed in partnership with Xencor
Approval of Minjuvi: The European Commission has approved Incyte's drug Minjuvi, in combination with lenalidomide and rituximab, as a late-line treatment for adults with relapsed or refractory follicular lymphoma.
Second Indication: This approval marks the second indication for Minjuvi in the EU, following its conditional approval for use in relapsed or refractory diffuse large B-cell lymphoma.
Xencor Extends Ultomiris Patent to 2028, Anticipates $100M to $120M in Additional Revenue
- Patent Extension: Xencor has been granted U.S. Patent 12,492,253 covering its Xtend™ Fc domain, extending the patent term to December 2028, which is approximately three years longer than the previous patent, ensuring low-single digit royalty income from Ultomiris.
- Potential Revenue Growth: Based on consensus sales forecasts, Xencor anticipates receiving an additional $100 million to $120 million in royalties during the extended patent term, which will support funding for its internal pipeline as it advances in clinical development.
- Strategic Partnership: OMERS has acquired royalties due to Xencor on global Ultomiris sales starting in 2026, with potential annual revenues of up to $35 million, enhancing the company's financial stability as excess royalties revert to Xencor.
- Technological Advantage: Xencor's Xtend antibody half-life extension technology provides new therapeutic mechanisms for its XmAb medicines, driving innovation in cancer and autoimmune disease treatments, aligning with its long-term value creation strategy.
JP Morgan Keeps Overweight Rating on Xencor, Reduces Price Target to $18
Fastest News Alerts: Benzinga Pro offers real-time intelligence to help traders stay updated and make informed decisions in the stock market.
Exclusive Stories: The platform provides unique stories and insights generated by Benzinga reporters, enhancing the trading experience for its users.
Community of Traders: Over 10,000 serious traders are part of the Benzinga Pro community, benefiting from shared knowledge and resources.
Market Intelligence: Benzinga Pro is positioned as a source for the most accurate and timely stock market intelligence available.
Xencor Lowers Outlook After Royalty Dispute
- Stock Price Decline: Xencor (XNCR) shares fell approximately 8% on Thursday, primarily due to the company's lowered outlook following a royalty dispute with AstraZeneca's subsidiary Alexion Pharmaceuticals, indicating market concerns about future earnings.
- Royalty Revenue Adjustment: Xencor stated that Alexion has informed the company it will no longer owe additional royalties related to Ultomiris net sales in the U.S., although payments for sales outside the U.S. will continue, potentially leading to future revenue uncertainty.
- Cash Flow Forecast Downgrade: The company updated its year-end cash guidance, projecting cash, cash equivalents, and marketable debt securities to reach $380 million to $400 million by year-end, down from the previous estimate of $400 million to $430 million, reflecting a cautious outlook on future operations.
- Shortened Operating Runway: Xencor's revised operating runway forecast has also been shortened, now expected to last until mid-2028, down from prior guidance, indicating increased financial pressure on the company amid the royalty dispute.
Xencor Lowers Revenue Outlook for Ultomiris Royalties
- Revenue Outlook Revision: Xencor Inc. announced a revision of its revenue outlook for royalties tied to Ultomiris, as Alexion Pharmaceuticals stated it does not owe additional royalties on Ultomiris sales, which will directly impact Xencor's future cash flow and profitability.
- Cash Flow Forecast Adjustment: Xencor lowered its 2026 cash outlook from $400 million–$430 million to $380 million–$400 million, although it still expects its cash runway to support operations into mid-2028, indicating some financial pressure on the company.
- Analyst Perspective: William Blair holds a slightly negative view on Xencor's outlook, yet anticipates that clinical trial updates in 2026 will serve as more impactful catalysts, thus reiterating an Outperform rating, reflecting cautious optimism about the company's long-term potential.
- Technical Analysis Signals: Xencor's stock is currently trading below its 20-day and 100-day simple moving averages, indicating short-term weakness; despite an 83% increase in share price over the past 12 months, the mixed signals from RSI and MACD suggest investors should proceed with caution.
Xencor Q4 Earnings Beat Expectations Despite Revenue Decline
- Earnings Beat: Xencor reported a Q4 GAAP EPS of -$0.09, surpassing expectations by $0.50, indicating resilience in profitability despite ongoing financial challenges.
- Significant Revenue Decline: The company’s revenue of $28.24 million represents a 46.5% year-over-year decrease, missing market expectations, which may impact investor confidence in a competitive biopharmaceutical landscape.
- Strong Cash Reserves: As of December 31, 2025, Xencor held $610.8 million in cash, cash equivalents, and marketable securities, down from $706.7 million in 2024, reflecting cautious financial management amid operational challenges.
- Optimistic Partnership Outlook: The late-stage trial success of the lymphoma therapy partnered with Incyte, along with its EU approval, suggests potential growth opportunities for Xencor in drug development and market expansion.
Incyte reveals EU authorization for lymphoma treatment developed in partnership with Xencor
Approval of Minjuvi: The European Commission has approved Incyte's drug Minjuvi, in combination with lenalidomide and rituximab, as a late-line treatment for adults with relapsed or refractory follicular lymphoma.
Second Indication: This approval marks the second indication for Minjuvi in the EU, following its conditional approval for use in relapsed or refractory diffuse large B-cell lymphoma.
Xencor Extends Ultomiris Patent to 2028, Anticipates $100M to $120M in Additional Revenue
- Patent Extension: Xencor has been granted U.S. Patent 12,492,253 covering its Xtend™ Fc domain, extending the patent term to December 2028, which is approximately three years longer than the previous patent, ensuring low-single digit royalty income from Ultomiris.
- Potential Revenue Growth: Based on consensus sales forecasts, Xencor anticipates receiving an additional $100 million to $120 million in royalties during the extended patent term, which will support funding for its internal pipeline as it advances in clinical development.
- Strategic Partnership: OMERS has acquired royalties due to Xencor on global Ultomiris sales starting in 2026, with potential annual revenues of up to $35 million, enhancing the company's financial stability as excess royalties revert to Xencor.
- Technological Advantage: Xencor's Xtend antibody half-life extension technology provides new therapeutic mechanisms for its XmAb medicines, driving innovation in cancer and autoimmune disease treatments, aligning with its long-term value creation strategy.
JP Morgan Keeps Overweight Rating on Xencor, Reduces Price Target to $18
Fastest News Alerts: Benzinga Pro offers real-time intelligence to help traders stay updated and make informed decisions in the stock market.
Exclusive Stories: The platform provides unique stories and insights generated by Benzinga reporters, enhancing the trading experience for its users.
Community of Traders: Over 10,000 serious traders are part of the Benzinga Pro community, benefiting from shared knowledge and resources.
Market Intelligence: Benzinga Pro is positioned as a source for the most accurate and timely stock market intelligence available.
