Xencor Announces Change to Ultomiris® Royalty Revenue Forecast
MWN-AI** Summary
Xencor, Inc. (NASDAQ:XNCR), a clinical-stage biopharmaceutical company specializing in engineered antibodies, announced significant updates regarding its royalty revenue projections for the drug Ultomiris® (ravulizumab-cwvz), licensed to Alexion Pharmaceuticals, Inc. The announcement follows a notification from Alexion, indicating that it no longer intends to pay any additional royalties based on U.S. sales of Ultomiris. However, Alexion has committed to continuing royalty payments for sales outside the United States.
Xencor's CEO, Dr. Bassil Dahiyat, expressed disappointment over this development, emphasizing that the company had anticipated consistent royalty payments aligned with the contractual agreements in place with its licensees. Despite this setback regarding U.S. sales, Dahiyat reassured stakeholders that there has been no noticeable change in the royalty payments from international sales of Ultomiris.
As a result of this altered revenue forecast, Xencor has proactively revised its financial guidance. The company estimates that it will end the year 2026 with a cash reserve between $380 million and $400 million, ensuring it can continue its research and development initiatives through mid-2028. Previously, Xencor projected an additional $100 to $120 million in aggregate royalties from Ultomiris sales in the U.S. through 2028.
The update comes as Xencor continues to explore its XmAb® technology, which is advancing multiple treatment candidates for cancer and autoimmune diseases. The company remains committed to resolving the royalty disagreement with Alexion. Investors are advised to be cautious, as future financial forecasts are subject to risks and uncertainties inherent in the biopharmaceutical industry. For detailed information, stakeholders can refer to Xencor’s official communications and financial filings.
MWN-AI** Analysis
Xencor, Inc. (NASDAQ:XNCR) recently announced a significant change related to its royalty revenue forecast from Ultomiris® (ravulizumab-cwvz), a drug licensed to Alexion Pharmaceuticals. The key update involves Alexion's position that it does not owe further royalties on US sales of Ultomiris, a claim that challenges Xencor's previous expectations of generating $100 to $120 million in royalties through 2028 from these sales. Despite this, Alexion will reportedly continue to make royalty payments for sales outside the United States.
Investors should approach this situation with caution. The uncertainty surrounding potential royalty revenues raises concerns about Xencor's financial outlook. Although the company expects to have between $380 million and $400 million in cash by the end of 2026, the resolution of the royalty dispute is critical for maintaining investor confidence. The projected operating runway into mid-2028 hints at some buffer, but revenue fluctuations could significantly impact long-term projections.
It's also noteworthy that while Xencor has controlled their expenditures and issued an updated cash guidance, the apparent volatility in expected royalties directly correlates with its core financing strategy. The absence of US royalty income may necessitate alternative revenue streams or cost management measures to sustain its research and development portfolio.
Considering these factors, investors should closely monitor developments regarding this royalty dispute and Xencor's overall financial health. A thorough review of their quarterly earnings, updates on clinical developments, and management's strategies in response to these royalty challenges will be essential for informed decision-making. With its Angio- and cancer-focused research programs, the potential long-term growth remains; however, short-term volatility could present buying opportunities for those who believe in the company’s underlying technology and value proposition.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Xencor, Inc. (NASDAQ:XNCR), a clinical-stage biopharmaceutical company developing engineered antibodies for the treatment of cancer and autoimmune diseases, today announced that Alexion Pharmaceuticals, Inc. (the “Licensee”) informed Xencor, Inc. (the “Company”) that it has taken the position that the Licensee does not owe any additional royalties for sales of Ultomiris® (ravulizumab-cwvz) in the United States and that the Licensee does not intend to make any future payments for sales in the United States. The Licensee informed the Company that it intends to continue making royalty payments for sales of Ultomiris outside the United States.
“Xencor has reasonably assumed that the multiple licensees of our XmAb Fc domains and technologies remit payments in accordance with the terms of their respective agreements. One licensee has expressed disagreement regarding payments for net sales of Ultomiris in the United States, and we plan to work toward a resolution in this matter. Importantly, we have not observed a change in payments related to ex-U.S. sales,” said Bassil Dahiyat, Ph.D., president and chief executive officer of Xencor. “We have updated our year-end cash guidance and conservatively adjust our operating runway estimate into mid-2028.”
The Company previously announced the issuance of U.S. Patent 12,492,253 and its expectation to receive an estimated additional $100 to $120 million in aggregate through 2028 in low single-digit royalties on net sales of Ultomiris in the United States from the Licensee. Ultomiris is a drug being developed and commercialized by the Licensee and is a registered trademark of the Licensee.
Financial Guidance: Based on current operating plans, Xencor expects to end 2026 with between $380 million and $400 million in cash, cash equivalents and marketable debt securities, and to have sufficient cash resources to fund research and development programs and operations into mid-2028.
About Xencor
Xencor is a clinical-stage biopharmaceutical company developing engineered antibodies for the treatment of patients with cancer and autoimmune diseases. More than 20 candidates engineered with Xencor's XmAb® technology are in clinical development, and multiple XmAb medicines are marketed by partners. Xencor's XmAb engineering technology enables small changes to a protein’s structure that result in new mechanisms of therapeutic action. For more information, please visit www.xencor.com .
Forward-Looking Statements
Certain statements contained in this press release may constitute forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements that are not purely statements of historical fact, and can generally be identified by the use of words such as “potential,” “can,” “will,” “plan,” “may,” “could,” “would,” “expect,” “anticipate,” “seek,” “look forward,” “believe,” “committed,” “investigational,” “indicates,” “supports,” and similar terms, or by express or implied discussions relating to Xencor’s business, including, but not limited to, statements regarding projected financial resources and financial guidance, including estimated cash, cash equivalents and marketable debt securities at year end and cash runway for research and development programs and operations, expectations for and estimates of future royalty revenues, the quotations from Xencor's president and chief executive officer, and other statements that are not purely statements of historical fact. Such statements are made on the basis of the current beliefs, expectations, and assumptions of the management of Xencor and are subject to significant known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements and the timing of events to be materially different from those implied by such statements, and therefore these statements should not be read as guarantees of future performance or results. Such risks include, without limitation, the risks associated with the process of discovering, developing, manufacturing and commercializing drugs that are safe and effective for use as human therapeutics, the ability of publicly disclosed preliminary clinical trial data to support continued clinical development and regulatory approval for specific treatments, the risk of loss of key members of management, the risk that the fair value of our marketable equity securities will decline and the risks, uncertainties and other factors described under the heading “Risk Factors” in Xencor's Annual Report on Form 10-K for the year ended December 31, 2025 as well as Xencor's subsequent filings with the Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Xencor undertakes no obligation to revise or update these forward-looking statements to reflect events or circumstances after the date hereof, except as required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260304935463/en/
For Investors:
Charles Liles
cliles@xencor.com
(626) 737-8118
For Media:
Cassidy McClain
Inizio Evoke
cassidy.mcclain@inizioevoke.com
(619) 694-6291
FAQ**
How will the disagreement with Alexion Pharmaceuticals regarding U.S. royalty payments impact Xencor Inc. XNCR's projected financial guidance and cash runway through mid-2028?
What steps is Xencor Inc. XNCR planning to take to resolve the royalty disputes with the Licensee, and how might this affect investor confidence?
Given the current licensing issues, what alternative revenue streams is Xencor Inc. XNCR exploring to mitigate potential losses from U.S. royalties?
Can Xencor Inc. XNCR elaborate on how the newly issued patent 12,492,253 might influence their long-term growth strategy, especially in light of the recent royalty concerns?
**MWN-AI FAQ is based on asking OpenAI questions about Xencor Inc. (NASDAQ: XNCR).
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