PASADENA, Calif. - Xencor Inc . (NASDAQ:XNCR), a biopharmaceutical firm, announced it will reclaim full rights to its cancer treatment drug plamotamab, after Janssen Biotech, Inc. decided to terminate its stake in the product. The drug, a CD20 x CD3 bispecific T-cell engager, had been co-developed by the two companies for hematologic cancer treatment and had completed Phase 1 clinical trials.
Janssen retains rights to develop and commercialize other B-cell targeting bispecific antibodies, including JNJ-9401 and JNJ-1493, which are currently in Phase 1 trials for prostate cancer and B-cell malignancies, respectively. Both drugs were part of the companies' collaboration, which began in 2021 and involved joint research activities to discover new bispecific antibodies.
Plamotamab is now Phase 2 ready and is administered subcutaneously.
Xencor's CEO, Bassil Dahiyat, Ph.D., stated that the company would assess the drug's potential to meet unmet medical needs. The drug has shown promise in a Phase 1 clinical study, with data indicating it was generally well-tolerated and demonstrated encouraging clinical activity.
Under the terms of the collaboration, Xencor may receive future milestone payments and royalties on net sales of approved products, which could range from high-single to low-double-digit percentages. Additionally, Xencor has the option to co-fund development costs for certain programs and participate in up to 30% of the detailing efforts in the U.S., which could increase its royalty range.
Xencor specializes in developing engineered antibodies for treating cancer and other serious diseases. The company has several candidates in clinical development, and its XmAb® technology has been used to create over 20 clinical-stage drug candidates, with three being marketed by partners.
The information in this article is based on a press release statement from Xencor, Inc.
In other recent news, Xencor Inc. has experienced significant developments.
BTIG has adjusted its price target for Xencor shares to $38, down from $56, while maintaining a Buy rating. This decision follows an industry expert discussion on the development landscape for metastatic castration-resistant prostate cancer (mCRPC). The conversation emphasized the need for more data to validate the potential of CTLA4-targeting treatments, with Xencor's drug candidate, vudalimab, currently under evaluation for mCRPC.
In addition to this, Xencor has appointed Bart Cornelissen as its new Senior Vice President and Chief Financial Officer. Cornelissen, who played a crucial role in Seagen Inc.'s growth and its acquisition by Pfizer (NYSE:PFE), is expected to support Xencor's growth through strategic planning and capitalization as its internal pipeline progresses through clinical development.
InvestingPro Insights
As Xencor Inc. (NASDAQ:XNCR) prepares to take full ownership of its cancer treatment drug plamotamab, InvestingPro data and tips offer valuable insights into the company's financial health and analysts' expectations, which could influence investor decisions in light of recent developments.
InvestingPro Data:
- Market Cap (Adjusted): $1.36 billion USD
- Revenue Growth (last twelve months as of Q1 2024): 65.41%
- Price, Previous Close: $22.02 USD
InvestingPro Tips:
1. Xencor holds more cash than debt on its balance sheet, which may provide financial flexibility as they move forward with the development of plamotamab and other drug candidates.
2. Despite analysts expecting a sales decline in the current year, 3 analysts have revised their earnings upwards for the upcoming period, indicating a potential shift in market sentiment or confidence in the company's pipeline.
Investors considering Xencor as a potential addition to their portfolio should note that while the company has a robust pipeline of clinical-stage drug candidates, it also faces challenges, including weak gross profit margins and anticipated net income drop this year. Additionally, Xencor does not pay a dividend, which may be a factor for income-focused investors.
For those seeking to dive deeper into Xencor's financials and future prospects, InvestingPro offers additional insights and metrics. By using the coupon code PRONEWS24, investors can receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 6 more InvestingPro Tips available for Xencor, which can be accessed through the dedicated company page at https://www.investing.com/pro/XNCR.
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