Xencor Reports 104% Revenue Increase to $32.7 Million in Q1 2025

Xencor, Inc. reported a significant increase in revenue for the first quarter of 2025, generating $32.7 million compared to $16.0 million in the same period of 2024. This growth was primarily driven by collaboration, milestone, and royalty revenues, particularly from agreements with Alexion Pharmaceuticals and Incyte Corporation. The company recognized $15.5 million in non-cash royalty revenue from Alexion, up from $12.6 million a year earlier, and $2.8 million from Incyte, slightly down from $2.9 million. Despite the increase in revenue, Xencor reported a net loss of $48.4 million, an improvement from the $73.4 million loss in the prior year, reflecting a reduction in operating loss from $54.7 million to $43.2 million.

Operating expenses for the quarter rose to $75.9 million, up from $70.7 million in the previous year, with research and development costs increasing slightly to $58.6 million. General and administrative expenses also saw a notable rise, totaling $17.3 million compared to $13.8 million in the prior year, attributed to higher professional fees. The company’s total assets decreased to $904.7 million from $951.9 million at the end of 2024, with cash and cash equivalents slightly declining to $39.7 million.

In terms of strategic developments, Xencor completed the acquisition of Gale Therapeutics, gaining full control of the company as of January 20, 2025. This acquisition is expected to enhance Xencor's capabilities in developing engineered antibody therapeutics. The company is also advancing several clinical programs, including XmAb819, XmAb541, and XmAb942, with plans to initiate additional studies in 2025. The company’s employee headcount increased to 200 as of March 31, 2025, reflecting its ongoing expansion efforts.

Xencor's market position remains strong, with a focus on leveraging its proprietary XmAb technology platform to develop innovative therapies for cancer and autoimmune diseases. The company anticipates continued revenue growth from its collaborations and licensing agreements, although future milestone payments remain contingent on the successful achievement of specific development goals. Looking ahead, Xencor expects its existing financial resources to support operations through at least the next twelve months, while also planning for potential additional funding through equity offerings as needed.