Xencor initiated with an Outperform at William Blair

William Blair initiated coverage of Xencor (XNCR) with an Outperform rating. The firm believes the biopharmaceutical industry is entering a phase of “significant advancements” in the development of T-cell engagers for solid tumors, and that Xencor’s XmAb platform has demonstrated proof of concept through Amgen’s xaluritamig, which can be applied to wholly owned programs. The analyst sees blockbuster potential for XmAb819, citing the novel mechanism in renal cell carcinoma and ability to combine with other approved therapies in earlier lines of treatment. Blair estimates a net present value of $473M, or $6.26 per share, for this asset alone.