WALTHAM, Mass. - Xilio Therapeutics, Inc. (NASDAQ: XLO), a biotech firm engaged in developing immuno-oncology therapies, announced the addition of two new members to its board of directors. Aoife Brennan, M.D., and James Shannon, M.D., both recognized for their extensive experience in drug development, have joined the company's board, as stated by Paul Clancy, the board's chair.
Dr. Brennan's career includes a notable tenure as CEO and president of Synlogic (NASDAQ:SYBX), Inc., along with a leadership role in Biogen (NASDAQ:BIIB)'s Rare Disease Innovation Unit. She is currently on the boards of FibroGen (NASDAQ:FGEN), Inc., and Cerevance. Dr. Shannon, with over three decades of experience, has served as the chief medical officer of GlaxoSmithKline (NYSE:GSK) and held high-level positions at Novartis (SIX:NOVN). He is actively involved with MannKind (NASDAQ:MNKD) Corporation and ProQR (NASDAQ:PRQR) Therapeutics NV, among others.
Their appointments come at a critical time as Xilio advances its pipeline through several anticipated clinical milestones. The company's focus is on tumor-activated I-O therapies designed to localize anti-tumor activity and minimize systemic toxicities, a common limitation in current I-O treatments.
Xilio's approach involves a proprietary platform to develop tumor-activated cytokines, antibodies, and immune cell engagers, aiming to improve outcomes for cancer patients. The company's pipeline includes both clinical and preclinical I-O molecules.
The new board members expressed their enthusiasm for contributing to Xilio's mission. Dr. Brennan and Dr. Shannon's expertise is expected to be invaluable as the company navigates the upcoming phase of drug development and potential market value drivers.
In other recent news, Xilio Therapeutics has secured approximately $11.3 million through a private investment involving the sale of common stock and prefunded warrants. The placement includes noteworthy investors such as Bain Capital Life Sciences and Rock Springs Capital. This funding is aligned with Xilio's strategic focus on the clinical development of XTX301 and XTX101, immuno-oncology therapies. In addition, Xilio has partnered with Gilead Sciences (NASDAQ:GILD) for the XTX301 program, which includes a significant upfront payment and potential for substantial additional payments based on milestones and sales.
In line with these developments, Xilio has discontinued monotherapy development of XTX202 and is seeking collaborations for its advancement as a combination therapy. The company is also implementing cost-saving measures, including a workforce reduction affecting approximately 21% of its employees, which is expected to incur one-time costs of around $1 million. Notably, Xilio has repaid all outstanding amounts under its loan agreement with Pacific Western Bank.
InvestingPro Insights
In light of the recent board appointments at Xilio Therapeutics, investors may be keen to understand the financial health and market performance of the company. Xilio, with a modest market capitalization of $39.13 million, is navigating a challenging phase typical for biotech firms focused on research and development. According to InvestingPro data, the company's stock price has experienced significant volatility, with a remarkable 51.43% return over the last three months and a 48.33% increase over the last six months, reflecting investor optimism in some of the company's recent developments.
Despite these gains, the InvestingPro Tips highlight some financial concerns. Xilio is not expected to be profitable this year, and analysts have pointed out that the company is quickly burning through cash. This is underscored by a negative P/E ratio of -0.42 and an adjusted P/E ratio for the last twelve months as of Q1 2024 at -0.55, indicating that investors are currently valuing the company's growth prospects rather than its current earnings. Additionally, the company's gross profit margins remain weak, which may be a point of focus for the new board members with their extensive experience in drug development and corporate strategy.
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