Matt Phipps, an analyst from William Blair, has initiated a new Buy rating on Xencor (XNCR).
Matt Phipps has given his Buy rating due to a combination of factors, primarily focusing on the promising potential of Xencor’s proprietary pipeline to deliver unique clinical outcomes in the coming months. The biopharmaceutical sector is on the cusp of major breakthroughs in T-cell engagers for solid tumors, and Xencor’s XmAb platform, which has already shown proof of concept through Amgen’s xaluritamig, is well-positioned to capitalize on this trend. The company’s lead TCE, XmAb819, has shown clinical efficacy in renal cell carcinoma, with significant data expected by the second half of 2025. Initial trials have already indicated positive responses, with some patients maintaining stable disease for over a year, suggesting a favorable therapeutic window and limited off-target toxicities.
In addition to XmAb819, Xencor’s strategy to target Claudin 6 with XmAb541 in ovarian and endometrial cancers is promising, given the safety profiles of existing therapies. The company also has a robust immunology pipeline with high-value targets like TL1A and B-cell-depleting therapies, which could lead to significant advancements in treatment options. These factors, combined with the potential for XmAb819 to become a blockbuster treatment in renal cell carcinoma, underpin Phipps’s optimistic outlook for Xencor, reflected in his Buy rating.