Market Overview

Xencor Sees Profit-Taking After Big Pre-Market Spike


Xencor Inc (NASDAQ: XNCR) is on a roll this week, having announced Q4 2015 earnings beats Monday and initiating Phase II trials for its XmAb®5871 on two patients, one with IgG4-Related Disease and another with Systemic Lupus Erythematosus.

The stock saw significant movement upward in Tuesday's pre-market session, and continued to see profit-taking into the regular trading session.

Earnings And Guidance

Xencor reported 2015 year-end cash balance of $193.3 million, compared to the previous year's $54.7 million. Quarterly revenues came in at $21.8 million, significantly up from 2014's Q4 revenue of $5.7 million and beating analysts' expectations of $2.5 million. Full-year revenues were $27.8 million, up from $9.5 million in 2014.

Q4 earnings per share came in at $0.19, versus estimates of $(0.30).

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The biopharmaceutical company guided to $150 million in cash/cash equivalents for the end of 2016, and "expects to have cash to fund research and development programs and operations through 2019."

Phase II Trials

According to the company's press release, its trial drug XmAb®5871 is currently in two Phase II trials, and just dosed a patient with SLE and another with IgG4-RD.

The company elaborated, "The primary objective of the study is to evaluate the effect of every other week IV administration of XmAb5871 […] In IgG4-RD, a newly defined disease with no approved therapies, Xencor will have the opportunity to be at the forefront of providing a treatment for patients."

Regarding the SLE patient, the company stated, "The Phase 2 SLE trial is a novel design to evaluate the ability of XmAb5871 to maintain the improvement in disease activity after a short course of intra-muscular (IM) steroid therapy and in the absence of immunosuppressant medication […] its primary endpoint is maintenance of disease activity improvement achieved by a brief course of disease-suppressing IM steroid therapy."

Stock On The Move

At time of writing, Xencor was up 9.8 percent on the day at $13.18.

The stock has a market cap of $551.81 million and is down 10.33 percent year-to-date.


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