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Xencor to begin human trials for bowel disease antibody

Published 10/10/2024, 08:14 PM
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PASADENA, Calif. - Xencor, Inc. (NASDAQ: NASDAQ:XNCR), a clinical-stage biopharmaceutical company, is set to initiate the first human study of its investigational anti-TL1A antibody, XmAb942, in the last quarter of 2024. The announcement follows the publication of preclinical data, which was presented at the United European Gastroenterology (UEG) Week in Vienna, Austria, on October 15.

The upcoming Phase 1 study will involve healthy volunteers, marking the transition of XmAb942 from preclinical to clinical development. XmAb942 has been engineered to target inflammatory bowel diseases, including ulcerative colitis (UC) and Crohn's disease (CD), with the aim of providing a more potent and longer-lasting treatment option compared to the first-generation anti-TL1A antibodies.

John Desjarlais, Ph.D., Xencor's executive vice president and chief scientific officer, highlighted the potential of XmAb942 to offer leading potency and an extended dosing interval of eight to twelve weeks. He noted that preclinical studies suggest XmAb942's in vitro potency is comparable or superior to existing treatments, with a half-life of 23 days observed in non-human primates, which could enhance patient convenience and compliance.

Xencor anticipates presenting initial data from the single-ascending dose portion of the Phase 1 study in the first half of 2025. The company's broader portfolio includes more than 20 candidates developed using its XmAb® technology, with several XmAb medicines already on the market through partnerships.

The company's progress in antibody engineering aims to introduce new mechanisms of therapeutic action for serious diseases. This news article is based on a press release statement from Xencor, Inc. Investors and stakeholders are advised to follow Xencor's public filings with the Securities and Exchange Commission for further details and updates on the company's clinical developments and other business matters.

In other recent news, Xencor Inc . has been actively engaged in a series of significant developments. The biopharmaceutical firm recently announced that its board member, Dagmar Rosa-Bjorkeson, will depart to pursue new business opportunities, leading the company to seek new talent for its Board of Directors. Concurrently, Xencor is preparing to launch a public stock offering priced at $18 per share, with the aim of raising about $175 million for general corporate purposes.

RBC Capital Markets has increased its price target for Xencor to $34, maintaining an Outperform rating, while JPMorgan has upheld a bullish stance with a $27 target. However, Barclays reaffirmed its underweight rating on the company.

Xencor has reported promising results in its Phase 1 study of XmAb819, a treatment for advanced clear cell renal cell carcinoma, and has plans to launch four clinical studies targeting autoimmune diseases. In addition, the company regained full rights to its cancer treatment drug, plamotamab, after Janssen Biotech, Inc.'s decision to terminate its involvement.

In a recent shift in leadership, Xencor welcomed Bart Cornelissen as its new Senior Vice President and Chief Financial Officer. These recent developments highlight Xencor's ongoing evolution in the biopharmaceutical industry.

InvestingPro Insights

As Xencor (NASDAQ: XNCR) prepares to initiate its first human study of XmAb942, investors should consider some key financial metrics and insights from InvestingPro.

According to InvestingPro data, Xencor's market capitalization stands at $1.37 billion, reflecting the market's current valuation of the company's potential. The company's revenue for the last twelve months as of Q2 2024 was $133.62 million, with a revenue growth of 17.84% over the same period. This growth aligns with Xencor's ongoing development of its antibody engineering pipeline.

However, it's important to note that Xencor is currently operating at a loss, with a negative gross profit of $112.77 million and an operating income margin of -127.83% for the last twelve months as of Q2 2024. This is not uncommon for clinical-stage biopharmaceutical companies investing heavily in research and development.

InvestingPro Tips highlight that Xencor holds more cash than debt on its balance sheet, which could provide financial flexibility as it moves into clinical trials for XmAb942. Additionally, the company's liquid assets exceed short-term obligations, potentially offering a buffer for ongoing research and development expenses.

Investors should be aware that analysts anticipate a sales decline in the current year, and the company is not expected to be profitable this year. These projections underscore the importance of the upcoming clinical trials in shaping Xencor's future financial performance.

For those interested in a deeper analysis, InvestingPro offers 7 additional tips for Xencor, providing a more comprehensive view of the company's financial health and prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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