PASADENA, Calif. - Xencor, Inc. (NASDAQ:XNCR), a clinical-stage biopharmaceutical company, has initiated a public offering of its common stock and, for certain investors, pre-funded warrants to purchase shares of common stock. The company is also offering underwriters a 30-day option to buy additional shares at the public offering price, with the usual underwriting discounts and commissions.
The offering's completion is subject to market conditions, and there is no certainty regarding its size, timing, or terms. The proceeds from the offering are intended for general corporate purposes, including research and development, capital expenditures, and operational costs.
Leerink Partners, Raymond James, and RBC Capital Markets are serving as joint book-running managers, with Wedbush PacGrow acting as co-manager for the offering.
The offering is made through an automatic shelf registration statement filed with the SEC on February 27, 2023, which was effective upon filing. A preliminary prospectus supplement and accompanying prospectus will be available on the SEC's website.
Xencor specializes in developing engineered antibodies for cancer and other serious diseases. Its XmAb® technology has led to more than 20 candidates in clinical development, with three XmAb medicines commercialized by partners.
This announcement does not constitute an offer to sell or a solicitation of an offer to buy securities in any jurisdiction where it would be unlawful without registration or qualification under the securities laws of such state or jurisdiction.
The information in this article is based on a press release statement.
In other recent news, Xencor Inc . has made significant strides in the advancement of novel antibody treatments for autoimmune diseases and cancer. The company has reported positive initial clinical activity in its ongoing Phase 1 study of XmAb819, a treatment for advanced clear cell renal cell carcinoma. Furthermore, Xencor has announced plans to launch four clinical studies targeting autoimmune diseases, with a Phase 1 study for XmAb942 set to initiate in the near future.
Analysts' views on Xencor have been varied. JPMorgan (NYSE:JPM) has maintained a bullish stance on the company, with a price target of $27, citing the potential of Xencor's autoimmune strategy and its new pipeline assets. BMO Capital Markets also maintained an Outperform rating on Xencor with a price target of $32. In contrast, Barclays (LON:BARC) reaffirmed its underweight rating on the company, awaiting further clinical data on Xencor's ventures into autoimmune diseases. TD Cowen also reaffirmed its Buy rating on Xencor, following the company's strategic shift to prioritize new programs targeting rheumatoid arthritis and inflammatory bowel disease.
Moreover, Xencor has regained full rights to its cancer treatment drug, plamotamab, following Janssen Biotech, Inc.'s decision to terminate its involvement in the product. In another development, Xencor welcomed Bart Cornelissen as its new Senior Vice President and Chief Financial Officer. These are among the recent developments that highlight Xencor's ongoing evolution.
InvestingPro Insights
As Xencor, Inc. (NASDAQ:XNCR) prepares for its public stock offering, a look at the company's financial health and market performance can provide valuable context. According to InvestingPro data, Xencor holds a market capitalization of approximately $1.17 billion. Its recent performance shows a significant return over the last week, with a 17.41% increase in its price total return, and an even stronger return over the last month at 24.0%. These figures suggest a positive short-term investor sentiment.
However, the company's financials reveal some challenges. Xencor's revenue growth for the last twelve months as of Q2 2024 stands at 17.84%, but it has experienced a substantial quarterly revenue decline of 62.74%. Additionally, with a negative operating income margin of -127.83% and a gross profit margin of -84.4% for the same period, the company's profitability is under pressure.
InvestingPro Tips highlight that Xencor has more cash than debt on its balance sheet, which is a positive sign for financial stability. Moreover, the company's liquid assets exceed its short-term obligations, indicating a solid liquidity position. However, analysts have revised their earnings downwards for the upcoming period, and they do not anticipate the company will be profitable this year. These insights may be particularly relevant for investors considering participating in the stock offering.
For investors seeking a deeper dive into Xencor's financials and market performance, there are additional InvestingPro Tips available at https://www.investing.com/pro/XNCR.
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