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Xencor Inc. (XNCR)
:XNCR

Xencor (XNCR) AI Stock Analysis

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Xencor

(NASDAQ:XNCR)

Rating:46Neutral
Price Target:
$8.00
▼(-4.99%Downside)
Xencor's overall stock score is primarily impacted by significant financial challenges, including declining revenue and profitability issues. Technical analysis suggests bearish sentiment. However, recent promising clinical trial results offer a potential positive outlook, partially offsetting financial and technical concerns.
Positive Factors
Drug Development
Positive initial data from Xencor’s TCEs against tumor-restricted antigens offer significant upside to current share prices.
Financial Health
XNCR ended 1Q25 with $693.5M in cash and equivalents, with cash runway guidance into 2028.
Pipeline and Strategy
XNCR's pipeline gives the company 'multiple shots on goal' and could be appealing to investors given the company is well-positioned to execute on its long-term strategy.
Negative Factors
Market Concerns
Shares are down significantly compared to the overall market, indicating investor concerns.
Stock Performance
Shares have been in free-fall since the beginning of the year due to delays in the XmAb819 readout and concerns about XmAb942 differentiation and FDA uncertainty.

Xencor (XNCR) vs. SPDR S&P 500 ETF (SPY)

Xencor Business Overview & Revenue Model

Company DescriptionXencor, Inc., a clinical stage biopharmaceutical company, focuses on the discovery and development of engineered monoclonal antibody and cytokine therapeutics to treat patients with cancer and autoimmune diseases. The company provides Sotrovimab that targets the SARS-CoV-2 virus; Ultomiris for the treatment of patients with paroxysmal nocturnal hemoglobinuria and atypical hemolytic uremic syndrome; and Monjuvi for the treatment of patients with relapsed or refractory diffuse large B-cell lymphoma. It develops Plamotamab, a tumor-targeted antibody, which is in Phase I clinical trial to treat non-Hodgkin lymphoma; Vudalimab, a bispecific antibody, which is in Phase II clinical trial to treat metastatic castration-resistant prostate cancer and other solid tumor types; and Tidutamab that is in Phase II clinical trial to treat neuroendocrine tumors. The company is also developing XmAb306, which is in Phase I clinical trial to treat solid tumors; XmAb104 and XmAb841, which are in Phase I clinical trial to treat patients with selected solid tumors; XmAb564 that is in Phase I clinical trial to treat autoimmune diseases; AMG 509, which is in Phase I clinical trial to treat prostate cancer; XmAb819 for patients with renal cell carcinoma; and Novartis XmAb. It develops VIR-3434, which is in Phase II clinical trial for patients with hepatitis B virus infection; VIR-2482 that is in Phase 1/2 clinical trial to trat influenza A; VIR-7832, which is in Phase 1b/2a trial to treat mild-to-moderate COVID-19; and BMS-986414 + BMS-986413 is in Phase 2/3 NIH ACTIV-2 trial in treating COVID-19. The company develops AIMab7195 to reduce blood serum levels of IgE that mediates allergic responses and allergic disease; Obexelimab to treat autoimmune disease; and Xpro1595 to treat patients with Alzheimer's disease, mild cognitive impairment, and depression. It has a license agreement with Caris Life Sciences. Xencor, Inc. was incorporated in 1997 and is headquartered in Monrovia, California.
How the Company Makes MoneyXencor generates revenue through a combination of licensing agreements, collaborations, and milestone payments associated with its XmAb technology platform. The company forms strategic partnerships with other pharmaceutical and biotechnology companies to develop and commercialize its antibody candidates, receiving upfront payments, research funding, and subsequent royalties on the sales of approved products. Additionally, Xencor may earn milestone payments when certain clinical, regulatory, or commercial objectives are met. These collaborative arrangements form the core of Xencor's business model, allowing it to leverage its technology platform while sharing the financial and operational risks of drug development.

Xencor Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q4-2023)
|
% Change Since: 5.51%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with significant pipeline progress and a strong financial position. However, safety concerns with vudalimab and a strategic pause on XmAb564 development were noted.
Q4-2023 Updates
Positive Updates
Strong Financial Position
Xencor ended 2023 with $697 million, providing runway into 2027 due to robust milestone and royalty revenues.
Clinical Pipeline Progress
Significant advancement in bispecific T-cell engagers for solid tumors, including vudalimab in prostate and lung cancer.
Encouraging Vudalimab Data
The prostate cancer monotherapy cohort showed a RECIST response rate of 35% and a disease control rate of 50%.
XmAb Bispecific Technology Development
XmAb bispecific technology shows promise for solid tumor selectivity, with ongoing studies in renal and prostate cancer.
Negative Updates
Safety Concerns with Vudalimab
One case of Grade 5 immune-related hepatitis was reported, raising safety considerations for the treatment.
Pause on XmAb564 Development
Development paused to focus on T-cell engagers, pending further validation of cytokines.
Company Guidance
During Xencor's fourth-quarter 2023 earnings call, the company provided comprehensive guidance on its clinical pipeline and financial outlook. They highlighted a significant focus on the development of bispecific T-cell engagers for solid tumors, including XmAb819 and XmAb808, with ongoing Phase I studies in renal cell carcinoma and prostate cancer, respectively. Vudalimab, a key candidate, showed promising monotherapy results in heavily pre-treated metastatic castrate-resistant prostate cancer patients, with a RECIST response rate of 35% and a PSA90 rate of 25%. Financially, Xencor bolstered its balance sheet through the partial monetization of Ultomiris and Monjuvi royalties, ending 2023 with $697 million, ensuring operational runway until 2027. The company's 2024 priorities include advancing its solid tumor bispecific programs and selecting the next IND candidate, while maintaining a strategic focus on T-cell engager discovery and development.

Xencor Financial Statement Overview

Summary
Xencor faces significant financial challenges with declining revenues, negative net profit, and cash flow issues. Despite a strong equity base, the negative return on equity and free cash flow raise concerns over financial stability.
Income Statement
42
Neutral
Xencor's income statement reveals a challenging environment with negative net profit and declining revenues. The company recorded a negative net profit margin of -163.3% and a gross profit margin of 97.7% in the TTM, indicating high costs relative to revenue. The revenue growth rate is concerning, as revenues decreased from $275.1 million in 2021 to $130.4 million in the TTM. Despite a high gross profit margin, other profitability metrics such as EBIT and EBITDA margins are negative, suggesting operational inefficiencies.
Balance Sheet
55
Neutral
The balance sheet shows a stable equity position with a debt-to-equity ratio of 0.11, indicating low leverage. The equity ratio stands at 70.7%, suggesting a strong reliance on equity over debt. However, the return on equity (ROE) is negative at -33.3% due to net losses, which is a concern for investors looking for returns on their equity.
Cash Flow
38
Negative
Xencor's cash flow statement shows negative free cash flow growth, with free cash flow at -$173 million in the TTM. The operating cash flow to net income ratio is also negative, reflecting challenges in converting income into cash. The company experienced a negative free cash flow to net income ratio, highlighting potential liquidity issues.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue130.42M110.49M168.34M164.58M275.11M122.69M
Gross Profit127.40M98.39M-85.26M155.78M267.62M-47.11M
EBITDA-158.48M-186.17M-125.87M-72.16M51.26M-71.00M
Net Income-213.00M-232.62M-126.09M-55.18M82.63M-63.54M
Balance Sheet
Total Assets904.69M951.95M952.69M846.27M838.21M703.24M
Cash, Cash Equivalents and Short-Term Investments469.57M497.77M593.73M623.06M334.11M603.00M
Total Debt67.82M231.95M83.43M59.63M33.97M11.63M
Total Liabilities264.81M277.92M283.56M118.77M104.71M130.80M
Stockholders Equity639.87M677.61M668.80M727.50M733.50M572.44M
Cash Flow
Free Cash Flow-173.04M-208.28M63.86M-18.92M-32.83M-18.77M
Operating Cash Flow-163.15M-202.19M85.11M24.48M-16.85M-5.00M
Investing Cash Flow-26.52M-7.87M-111.06M-119.72M-46.25M100.19M
Financing Cash Flow198.22M197.15M26.18M5.70M43.04M18.04M

Xencor Technical Analysis

Technical Analysis Sentiment
Negative
Last Price8.42
Price Trends
50DMA
8.88
Negative
100DMA
10.72
Negative
200DMA
16.35
Negative
Market Momentum
MACD
-0.19
Positive
RSI
47.27
Neutral
STOCH
53.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XNCR, the sentiment is Negative. The current price of 8.42 is below the 20-day moving average (MA) of 8.74, below the 50-day MA of 8.88, and below the 200-day MA of 16.35, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 47.27 is Neutral, neither overbought nor oversold. The STOCH value of 53.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for XNCR.

Xencor Risk Analysis

Xencor disclosed 52 risk factors in its most recent earnings report. Xencor reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Xencor Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$921.16M-40.13%-3.08%
60
Neutral
HK$15.58B5.65-7.43%4.32%11.60%-21.06%
59
Neutral
$1.11B-57.92%-13.37%2.57%
54
Neutral
$760.74M222.83%29.88%35.11%
50
Neutral
$580.28M-35.41%
46
Neutral
$599.26M-33.48%-25.88%-29.16%
40
Underperform
$312.44M-60.45%6.99%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
XNCR
Xencor
8.42
-9.76
-53.69%
RCKT
Rocket Pharmaceuticals
2.90
-17.75
-85.96%
AVXL
Anavex Life Sciences
10.79
6.28
139.25%
NTLA
Intellia Therapeutics
10.74
-12.20
-53.18%
XERS
Xeris Pharmaceuticals
4.75
2.62
123.00%
ARVN
Arvinas Holding Company
7.95
-17.73
-69.04%

Xencor Corporate Events

Executive/Board ChangesShareholder Meetings
Xencor Holds Annual Stockholders Meeting on June 12
Neutral
Jun 13, 2025

On June 12, 2025, Xencor, Inc. held its Annual Meeting of Stockholders, where 94.68% of the company’s shares were represented. During the meeting, stockholders elected eight directors, ratified KPMG LLP as the independent accounting firm, approved an amendment to increase shares in the Equity Incentive Plan by 3,000,000, and supported the executive compensation plan.

The most recent analyst rating on (XNCR) stock is a Buy with a $38.00 price target. To see the full list of analyst forecasts on Xencor stock, see the XNCR Stock Forecast page.

Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Xencor Announces Executive Vice President Resignation
Neutral
May 7, 2025

On May 5, 2025, Xencor announced the resignation of Nancy Valente as Executive Vice President and Chief Development Officer, effective June 6, 2025, with plans for her to continue as a senior advisor. The company reported its first-quarter 2025 financial results, highlighting a net loss reduction compared to the previous year and increased revenues primarily from non-cash royalty and milestone payments. Xencor is advancing its XmAb942 antibody for ulcerative colitis into a Phase 2b study and is preparing a bispecific antibody candidate for Phase 1 trials in 2026. The company expects to maintain significant cash reserves to fund operations into 2028.

Product-Related AnnouncementsBusiness Operations and Strategy
Xencor Announces Promising Phase 1 Study Results
Positive
Apr 30, 2025

On April 29, 2025, Xencor announced interim results from its Phase 1 dose-escalation study of XmAb942 (Xtend™ TL1A), highlighting its potential for treating inflammatory bowel disease (IBD). The company also shared preclinical data from its XmAb TL1A x IL23p19 program, suggesting promising clinical timelines. These developments underscore Xencor’s strategic focus on advancing its XmAb drug candidates, potentially strengthening its position in the biotechnology sector and offering new therapeutic options for stakeholders.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 28, 2025