On Tuesday, TD Cowen reaffirmed its Buy rating on shares of Xilio Therapeutics Inc (NASDAQ:XLO). The biotechnology firm, which specializes in developing cancer treatments, had reported a second-quarter net loss of $14 million and had cash reserves of $75 million, projected to last into the second quarter of 2025.
Xilio Therapeutics is currently concentrating its clinical efforts on two significant trials. The first is a combination trial of XTX101, a tumor-activated CTLA-4 antibody, with atezolizumab for colorectal cancer (CRC). The second is a monotherapy trial of XTX301, a tumor-activated IL-12, for solid tumors. Results from both trials are anticipated in the fourth quarter of this year.
In addition to these trials, Xilio Therapeutics is advancing a portfolio of tumor-activated bispecific antibodies and cell engagers towards clinical testing. This development is part of the company's broader strategy to create innovative cancer therapies that are activated specifically within the tumor microenvironment to minimize systemic exposure and potential side effects.
The company's financial position, with sufficient cash to fund operations into the second quarter of 2025, provides a stable foundation for continued research and development activities. Xilio's strategic focus on advancing its clinical programs is aimed at addressing significant unmet medical needs in the oncology space.
TD Cowen's Buy rating signals confidence in Xilio Therapeutics' clinical direction and the potential of its pipeline candidates. With key data expected later this year, stakeholders are likely to watch the company's progress closely.
In other recent news, Xilio Therapeutics, a biotech firm specializing in immuno-oncology therapies, announced significant additions to its board of directors and strategic developments. The company welcomed Aoife Brennan, M.D., and James Shannon, M.D., both esteemed for their extensive experience in drug development, to its board. This move comes as Xilio advances its pipeline through several anticipated clinical milestones, with a focus on tumor-activated I-O therapies.
The company recently secured approximately $11.3 million through a private investment involving the sale of common stock and prefunded warrants, with notable investors such as Bain Capital Life Sciences and Rock Springs Capital.
This funding supports Xilio's strategic focus on the clinical development of XTX301 and XTX101, its immuno-oncology therapies. Furthermore, Xilio has established a partnership 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 recent developments, Xilio 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. This action is expected to incur one-time costs of around $1 million.
InvestingPro Insights
As Xilio Therapeutics (NASDAQ:XLO) continues to push forward with its clinical trials, a closer look at the company's financial health and market performance provides additional context for investors. Notably, XLO holds more cash than debt on its balance sheet, which aligns with the company's reported cash reserves of $75 million, ensuring a stable runway for its ongoing research and development. This financial cushion is critical as the company is not expected to be profitable this year, and it has not been profitable over the last twelve months.
Investors may also find the recent market activity of Xilio's stock intriguing. Despite the company's cash burn, the stock has seen a significant return over the last week, with a price uptick of 15.73%. Over a longer horizon, the stock has experienced a large price uptick over the last six months, boasting a 66.92% return. This dynamic movement suggests a level of market confidence in the company's future prospects, despite its current lack of profitability.
For those interested in deeper analytics and additional insights, there are more InvestingPro Tips available, providing a comprehensive analysis of Xilio Therapeutics' financials and market trends. These tips can guide investors in making informed decisions about the company's stock.
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