Xencor (XNCR) 10-Q 5 May 22 2022 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2022	Apr. 29, 2022
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2022
Entity File Number	001-36182
Entity Registrant Name	Xencor Inc
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-1622502
Entity Address, Address Line One	111 West Lemon Avenue
Entity Address, City or Town	Monrovia
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	91016
City Area Code	626
Local Phone Number	305-5900
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	XNCR
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		59,542,935
Entity Central Index Key	0001326732
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1

Balance Sheets

Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Current assets
Cash and cash equivalents	$ 78,267	$ 143,480
Marketable debt securities	278,058	153,767
Marketable equity securities	33,430	36,860
Accounts receivable	88,204	66,384
Contract asset	5,000
Prepaid expenses	23,011	23,877
Total current assets	505,970	424,368
Property and equipment, net	28,411	28,240
Patents, licenses, and other intangible assets, net	16,712	16,493
Marketable debt securities - long term	239,035	300,465
Marketable equity securities - long term	31,262	31,262
Notes receivable - long term	5,000	5,000
Right of use (ROU) asset	30,919	31,730
Other assets	613	653
Total assets	857,922	838,211
Current liabilities
Accounts payable	11,905	14,001
Accrued expenses	12,612	19,443
Lease liabilities	936
Deferred revenue	35,488	37,294
Total current liabilities	60,941	70,738
Lease liabilities, net of current portion	33,958	33,969
Total liabilities	94,899	104,707
Commitments and contingencies
Stockholders' equity
Preferred stock, $0.01 par value: 10,000,000 authorized shares; -0- issued and outstanding shares at March 31, 2022 and December 31, 2021
Common stock, $0.01 par value: 200,000,000 authorized shares at March 31, 2022 and December 31, 2021; 59,529,192 issued and outstanding at March 31, 2022 and 59,355,558 issued and outstanding at December 31, 2021	596	595
Additional paid-in capital	1,029,058	1,017,523
Accumulated other comprehensive loss	(7,121)	(1,510)
Accumulated deficit	(259,510)	(283,104)
Total stockholders' equity	763,023	733,504
Total liabilities and stockholders' equity	$ 857,922	$ 838,211

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2022	Dec. 31, 2021
Balance Sheets
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	59,529,192	59,355,558
Common stock, shares outstanding	59,529,192	59,355,558

Statements of Comprehensive Inc

Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenue
Collaborations, milestones, and royalties	$ 85,495	$ 33,965
Operating expenses
Research and development	47,756	41,411
General and administrative	11,273	8,226
Total operating expenses	59,029	49,637
Income (loss) from operations	26,466	(15,672)
Other income (expenses)
Interest income, net	653	215
Other expense, net	(96)	(11)
(Loss) gain on equity securities, net	(3,429)	12,981
Total other income (expense), net	(2,872)	13,185
Net income (loss)	23,594	(2,487)
Other comprehensive income (loss)
Net unrealized (loss) gain on marketable debt securities	(5,611)	23
Comprehensive income (loss)	$ 17,983	$ (2,464)
Net income (loss) per share attributable to common stockholders:
Basic net income (loss) per common share (in dollars per share)	$ 0.40	$ (0.04)
Diluted net income (loss) per common share (in dollars per share)	$ 0.39	$ (0.04)
Weighted average shares used to compute net income (loss) per share attributable to common stockholders:
Basic (in shares)	59,407,829	57,997,313
Diluted (in shares)	61,078,494	57,997,313

Statements of Stockholders' Equ

Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit	Total
Balance at Dec. 31, 2020	$ 580	$ 937,525	$ 74	$ (365,735)	$ 572,444
Balance (in shares) at Dec. 31, 2020	57,873,444
Increase (Decrease) in Stockholders' Equity
Issuance of common stock upon exercise of stock awards	$ 2	5,337			5,339
Issuance of common stock upon exercise of stock awards (in shares)	230,701
Issuance of restricted stock units	$ 1	(1)
Issuance of restricted stock units (in shares)	117,808
Comprehensive income (loss)			23	(2,487)	(2,464)
Stock-based compensation		8,293			8,293
Balance at Mar. 31, 2021	$ 583	951,154	97	(368,222)	583,612
Balance (in shares) at Mar. 31, 2021	58,221,953
Balance at Dec. 31, 2021	$ 595	1,017,523	(1,510)	(283,104)	733,504
Balance (in shares) at Dec. 31, 2021	59,355,558
Increase (Decrease) in Stockholders' Equity
Issuance of common stock upon exercise of stock awards		731			731
Issuance of common stock upon exercise of stock awards (in shares)	36,500
Issuance of restricted stock units	$ 1	(1)
Issuance of restricted stock units (in shares)	137,134
Comprehensive income (loss)			(5,611)	23,594	17,983
Stock-based compensation		10,805			10,805
Balance at Mar. 31, 2022	$ 596	$ 1,029,058	$ (7,121)	$ (259,510)	$ 763,023
Balance (in shares) at Mar. 31, 2022	59,529,192

Statements of Cash Flows

Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities
Net income (loss)	$ 23,594	$ (2,487)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	2,178	1,638
Amortization of premium on marketable securities	543	865
Stock-based compensation	10,805	8,293
Abandonment of capitalized intangible assets	311	193
Change in fair value of equity securities	3,429	(12,980)
Loss on disposal of assets	117
Changes in operating assets and liabilities:
Accounts receivable	(26,820)	(1,082)
Interest receivable from marketable debt securities	(251)	311
Prepaid expenses and other assets	906	(3,500)
Accounts payable	(2,096)	(1,291)
Accrued expenses	(6,831)	(5,090)
Lease liabilities and ROU assets	1,736	(42)
Deferred revenue	(1,806)	(14,794)
Net cash provided by (used in) operating activities	5,815	(29,966)
Cash flows from investing activities
Purchase of marketable securities	(88,764)	(84,139)
Purchase of intangible assets	(906)	(72)
Purchase of property and equipment	(2,089)	(1,951)
Proceeds from maturities and sale of marketable securities	20,000	124,210
Net cash (used in) provided by investing activities	(71,759)	38,048
Cash flows from financing activities
Proceeds from issuance of common stock upon exercise of stock awards	731	5,339
Net cash provided by financing activities	731	5,339
Net (decrease) increase in cash and cash equivalents	(65,213)	13,421
Cash and cash equivalents, beginning of period	143,480	163,544
Cash and cash equivalents, end of period	78,267	176,965
Cash paid for:
Interest	4	4
Supplemental disclosures of non-cash investing activities
Unrealized (loss) gain on marketable securities	$ (5,611)	$ 23

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2022
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	1. Summary of Significant Accounting Policies ​ Basis of Presentation The accompanying unaudited interim financial statements for Xencor, Inc. (the Company, Xencor, we or us) have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information. The financial statements include all adjustments (consisting only of normal recurring adjustments) that the management of the Company believes are necessary for a fair presentation of the periods presented. The preparation of interim financial statements requires the use of management’s estimates and assumptions that affect reported amounts of assets and liabilities at the date of the interim financial statements and the reported revenues and expenditures during the reported periods. These interim financial results are not necessarily indicative of the results expected for the full fiscal year or for any subsequent interim period. The accompanying unaudited interim financial statements and related notes should be read in conjunction with the audited financial statements and notes thereto included in the Company’s 2021 Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on February 24, 2022. Use of Estimates The preparation of interim financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, other comprehensive gain (loss) and the related disclosures. On an ongoing basis, management evaluates its estimates, including estimates related to its accrued clinical trial and manufacturing development expenses, stock-based compensation expense, evaluation of intangible assets, investments, leases and other assets for evidence of impairment, fair value measurements, and contingencies. Significant estimates in these interim financial statements include estimates made for royalty revenue, accrued research and development expenses, stock-based compensation expenses, intangible assets, incremental borrowing rate for right-of-use asset and lease liability, estimated standalone selling price of performance obligations, estimated time for completing delivery of performance obligations under certain arrangements, the likelihood of recognizing variable consideration, the carrying value of equity instruments without a readily determinable fair value, and recoverability of deferred tax assets. Intangible Assets The Company maintains definite-lived intangible assets related to certain capitalized costs of acquired licenses and third-party costs incurred in establishing and maintaining its intellectual property rights to its platform technologies and development candidates. These assets are amortized over their useful lives, which are estimated to be the remaining patent life or the contractual term of the license. The straight-line method is used to record amortization expense. The Company assesses its intangible assets for impairment if indicators are present or changes in circumstances suggest that impairment may exist. There was no impairment charge recorded for the three months ended March 31, 2022 and 2021. The Company capitalizes certain in-process intangible assets that are then abandoned when they are no longer pursued or used in current research activities. There was no material abandonment of in-process intangible assets during the three months ended March 31, 2022 and 2021. Marketable Debt and Equity Securities The Company has an investment policy that includes guidelines on acceptable investment securities, minimum credit quality, maturity parameters, and concentration and diversification. The Company invests its excess cash primarily in marketable debt securities issued by investment grade institutions. The Company considers its marketable debt securities to be available-for-sale because it is not more likely than not that the Company will be required to sell the securities before recovery of the amortized cost. These assets are carried at fair value and any impairment losses and recoveries related to the underlying issuer’s credit standing are recognized within other income (expense), while non-credit related impairment losses and recoveries are recognized within accumulated other comprehensive income (loss). There were no impairment losses or recoveries recorded for the three months ended March 31, 2022 and 2021. Accrued interest on marketable debt securities is included in the marketable securities’ carrying value. Each reporting period, the Company reviews its portfolio of marketable debt securities, using both quantitative and qualitative factors, to determine if each security’s fair value has declined below its amortized cost basis. During the three months ended March 31, 2022, the Company recorded an unrealized loss of $5.6 million in its portfolio of marketable debt securities. The unrealized loss is due to the changing interest rate environment and is not due to changes in the credit quality of the underlying securities. The unrealized loss is recorded in other comprehensive income (loss) for the three months ended March 31, 2022. The Company receives equity securities in connection with certain licensing transactions with its partners. These investments in equity securities are carried at fair value with changes in fair value recognized each period and reported within other income (expense). For equity securities with a readily determinable fair value, the Company re-measures these equity investments at each reporting period until such time that the investment is sold or disposed. If the Company sells an investment, any realized gain or loss on the sale of the securities will be recognized within other income (expense) in the Statements of Comprehensive Income (Loss) in the period of sale. The Company also has investments in equity securities without a readily determinable fair value, where the Company elects the measurement alternative to record the investment at its initial cost minus impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. There was no impairment charge recorded for the three months ended March 31, 2022 and 2021, in connection with equity securities without a readily determinable fair value. Recent Accounting Pronouncements There have been no material changes in recently issued or adopted accounting standards from those disclosed in the Company’s 2021 Annual Report on Form 10-K. The Company has reviewed all recently issued accounting pronouncements and does not believe they will have a material impact on our results of operations, financial conditions, or cash flows. There have been no other material changes to the significant accounting policies previously disclosed in the Company’s 2021 Annual Report on Form 10-K.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2022
Fair Value of Financial Instruments
Fair Value of Financial Instruments	​ ​ 2. Fair Value of Financial Instruments ​ Financial instruments included in the financial statements include cash and cash equivalents, marketable debt and equity securities, accounts receivable, accounts payable, and accrued expenses. Marketable debt securities, equity securities, and cash equivalents are carried at fair value. The fair value of the other financial instruments closely approximates their fair value due to their short-term maturities. The Company accounts for recurring and non-recurring fair value measurements in accordance with FASB Accounting Standards Codification 820, Fair Value Measurements and Disclosures Level 1— Level 2— Level 3— The Company measures the fair value of financial assets using the highest level of inputs that are reasonably available as of the measurement date. The assets recorded at fair value are classified within the hierarchy as follows for the periods reported (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (unaudited) ​ December 31, 2021 ​ Total ​ ​ ​ ​ Total ​ ​ ​ ​ ​ ​ Fair Value ​ Level 1 ​ Level 2 ​ Fair Value ​ Level 1 ​ Level 2 Money Market Funds ​ $ 20,742 ​ $ 20,742 ​ $ — ​ $ 123,892 ​ $ 123,892 ​ $ — Corporate Securities ​ ​ 167,984 ​ ​ — ​ ​ 167,984 ​ ​ 144,418 ​ ​ — ​ ​ 144,418 Government Securities ​ ​ 349,109 ​ ​ — ​ ​ 349,109 ​ ​ 309,814 ​ ​ — ​ ​ 309,814 ​ ​ $ 537,835 ​ $ 20,742 ​ $ 517,093 ​ $ 578,124 ​ $ 123,892 ​ $ 454,232 ​ Our policy is to record transfers of assets between Level 1 and Level 2 at their fair values as of the end of each reporting period, consistent with the date of the determination of fair value. During the three months ended March 31, 2022 and 2021, there were no transfers between Level 1 and Level 2.

Net Income (Loss) Per Common Sh

Net Income (Loss) Per Common Share	3 Months Ended
	Mar. 31, 2022
Net Income (Loss) Per Common Share
Net Income (Loss) Per Common Share	​ ​ 3. Net Income (Loss) Per Common Share ​ Basic net income (loss) per common share is computed by dividing the net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period without consideration of common stock equivalents. Diluted net income (loss) per common share is computed by dividing the net income (loss) attributable to common stockholders by the weighted-average number of common stock equivalents outstanding for the period. Potentially dilutive securities consisting of stock issuable pursuant to outstanding options and restricted stock units (RSUs), and stock issuable pursuant to the 2013 Employee Stock Purchase Plan (ESPP) are not included in the per common share calculation in periods when the inclusion of such shares would have an anti-dilutive effect. Basic and diluted net income (loss) per common share is computed as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, ​ 2022 2021 ​ ​ (in thousands, except share and per share data) Numerator: ​ ​ ​ ​ ​ ​ Net income (loss) attributable to common stockholders ​ $ 23,594 ​ $ (2,487) Denominator: ​ ​ ​ ​ ​ ​ Weighted-average common shares outstanding used in computing basic net income (loss) ​ ​ 59,407,829 ​ ​ 57,997,313 Effect of dilutive securities ​ ​ 1,670,665 ​ ​ — Weighted-average common shares outstanding used in computing diluted net income (loss) ​ ​ 61,078,494 ​ ​ 57,997,313 Basic net income (loss) per common share ​ $ 0.40 ​ $ (0.04) Diluted net income (loss) per common share ​ $ 0.39 ​ $ (0.04) ​ For the three months ended March 31, 2022, we excluded 2,556,779 shares of stock issuable pursuant to outstanding options and RSUs from the calculation, because the inclusion of such shares would have had an anti-dilutive effect. For the three months ended March 31, 2021, all outstanding potentially dilutive securities have been excluded from the calculation of diluted net income (loss) per common share as the effect of including such securities would have been anti-dilutive.

Comprehensive Income (Loss)

Comprehensive Income (Loss)	3 Months Ended
	Mar. 31, 2022
Comprehensive Income (Loss)
Comprehensive Income (Loss)	​ 4. Comprehensive Income (Loss) ​ Comprehensive income (loss) is comprised of net income (loss) and other comprehensive income (loss). For the three months ended March 31, 2022 and 2021, the only component of other comprehensive income (loss) is net unrealized gain (loss) on marketable securities. There were no material reclassifications out of accumulated other comprehensive income (loss) during the three months ended March 31, 2022 and 2021.

Marketable Debt and Equity Secu

Marketable Debt and Equity Securities	3 Months Ended
	Mar. 31, 2022
Marketable Debt and Equity Securities
Marketable Debt and Equity Securities	​ ​ 5. Marketable Debt and Equity Securities ​ The Company’s marketable debt securities held as of March 31, 2022 and December 31, 2021 are summarized below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross ​ Gross ​ ​ ​ ​ Amortized Unrealized ​ Unrealized ​ March 31, 2022 ​ Cost ​ Gains ​ Losses ​ Fair Value (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Money Market Funds ​ $ 20,742 ​ $ — ​ $ — ​ $ 20,742 Corporate Securities ​ ​ 169,159 ​ ​ — ​ ​ (1,175) ​ ​ 167,984 Government Securities ​ ​ 355,045 ​ ​ — ​ ​ (5,936) ​ ​ 349,109 ​ ​ $ 544,946 ​ $ — ​ $ (7,111) ​ $ 537,835 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Reported as ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 20,742 Marketable securities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 517,093 Total investments ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 537,835 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross ​ Gross ​ ​ ​ ​ Amortized Unrealized ​ Unrealized ​ December 31, 2021 ​ Cost ​ Gains ​ Losses ​ Fair Value (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Money Market Funds ​ $ 123,892 ​ $ — ​ $ — ​ $ 123,892 Corporate Securities ​ ​ 144,584 ​ ​ — ​ ​ (166) ​ ​ 144,418 Government Securities ​ ​ 311,148 ​ ​ 1 ​ ​ (1,335) ​ ​ 309,814 ​ ​ $ 579,624 ​ $ 1 ​ $ (1,501) ​ $ 578,124 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Reported as ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 123,892 Marketable securities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 454,232 Total investments ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 578,124 ​ The maturities of the Company’s marketable debt securities as of March 31, 2022 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortized Estimated March 31, 2022 ​ Cost ​ Fair Value (in thousands) ​ ​ ​ ​ ​ ​ Mature in one year or less ​ $ 279,863 ​ $ 278,058 Mature within two years ​ ​ 244,341 ​ ​ 239,035 ​ ​ $ 524,204 ​ $ 517,093 ​ ​ The unrealized losses on available-for-sale investments and their related fair values as of March 31, 2022 and December 31, 2021 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less than 12 months ​ 12 months or greater ​ ​ ​ ​ ​ Unrealized ​ ​ ​ ​ Unrealized March 31, 2022 ​ Fair value ​ losses ​ Fair value ​ losses (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Corporate Securities ​ $ 82,738 ​ $ (554) ​ $ 32,184 ​ $ (621) Government Securities ​ ​ 141,865 ​ ​ (1,250) ​ ​ 206,851 ​ ​ (4,686) ​ ​ $ 224,603 ​ $ (1,804) ​ $ 239,035 ​ $ (5,307) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less than 12 months ​ 12 months or greater ​ ​ ​ ​ ​ Unrealized ​ ​ ​ ​ Unrealized December 31, 2021 ​ Fair value ​ losses ​ Fair value ​ losses (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Corporate Securities ​ $ 50,337 ​ $ (51) ​ $ 45,872 ​ $ (115) Government Securities ​ ​ 39,909 ​ ​ (54) ​ ​ 254,593 ​ ​ (1,281) ​ ​ $ 90,246 ​ $ (105) ​ $ 300,465 ​ $ (1,396) ​ The unrealized losses from the available-for-sale securities are primarily due to changes in the interest rate environment and not changes in the credit quality of the underlying securities in the portfolio. The Company’s equity securities include securities with a readily determinable fair value. These investments are carried at fair value with changes in fair value recognized each period and reported within other income (expense). For the three months ended March 31, 2022, a loss of $3.4 million was recorded in loss on equity securities under other income (expense) related to these securities. Equity securities with a readily determinable fair value and their fair values (in thousands) as of March 31, 2022 and December 31, 2021 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Fair Value ​ ​ March 31, 2022 ​ December 31, 2021 Astria Common Stock ​ $ 4,294 ​ $ 3,449 INmune Common Stock ​ ​ 15,876 ​ ​ 19,233 Viridian Common Stock ​ ​ 13,260 ​ ​ 14,178 ​ ​ $ 33,430 ​ $ 36,860 ​ The Company also has investments in equity securities without a readily determinable fair value. The Company elects the measurement alternative to record these investments at their initial cost and evaluate such investments at each reporting period for evidence of impairment, or observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Equity securities without a readily determinable fair value and their carrying values (in thousands) as of March 31, 2022 and December 31, 2021 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Carrying Value Carrying Value ​ ​ March 31, 2022 ​ December 31, 2021 Astria Preferred Stock ​ $ 312 ​ $ 312 Zenas Preferred Stock ​ ​ 30,950 ​ ​ 30,950 ​ ​ $ 31,262 ​ $ 31,262 ​ In 2018, the Company received equity shares in Quellis Biosciences, Inc. (Quellis) in connection with a licensing transaction. In 2021, Quellis merged into Astria Therapeutics, Inc. (Astria) (formerly Catabasis Pharmaceuticals, Inc.), and the Company received common and preferred stock in Astria in exchange for its Quellis equity. The shares of Astria common stock have a readily determinable fair value. The adjustment in the fair value of the Astria common stock has been recorded in unrealized gain (loss) on equity securities for the three months ended March 31, 2022. The Company records its investment in the shares of Astria preferred stock as an equity interest without a readily determinable fair value. The Company elected to record the shares of preferred stock at their initial cost and to review the carrying value for impairment or other changes in carrying value at each reporting period. During the three months ended March 31, 2022, the Company did not record an impairment charge related to its investment in Astria’s preferred stock. The Company currently holds 1,885,533 shares of common stock of INmune Bio, Inc. (INmune). The 1,885,533 shares of INmune common stock are classified as equity securities with a readily determinable fair value, and the adjustment in the fair value of the shares of INmune common stock has been recorded in gain (loss) on equity securities for the three months ended March 31, 2022. The Company currently holds 717,144 shares of common stock of Viridian Therapeutics, Inc. (Viridian). The shares of Viridian common stock are classified as equity securities with a readily determinable fair value, and the adjustment in the fair value of the shares of Viridian common stock was recorded in gain (loss) on equity securities for the three months ended March 31, 2022. The Company currently holds an equity interest in Zenas BioPharma Limited (Zenas), a private biotechnology company. The Company’s equity interests include preferred stock in Zenas and a warrant to acquire additional equity in Zenas in a subsequent financing. The Company also holds a convertible promissory note from Zenas. The Company elected the measurement alternative to carry the Zenas equity and the warrant at cost minus impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. During the three months ended March 31, 2022, there has not been any impairment or observable price changes related to this investment. Unrealized (loss) gain recognized on equity securities during the three months ended March 31, 2022 and 2021 consist of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, ​ 2022 2021 Net (loss) gain recognized on equity securities ​ $ (3,429) ​ $ 12,981 Less: net gain recognized on sale of equity securities ​ — ​ (1) Unrealized (loss) gain recognized on equity securities ​ $ (3,429) ​ $ 12,980 ​

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2022
Stock-Based Compensation
Stock-Based Compensation	​ ​ 6. Stock Based Compensation ​ Our Board of Directors (the Board) and the requisite stockholders previously approved the 2010 Equity Incentive Plan (the 2010 Plan). In October 2013, the Board approved the 2013 Equity Incentive Plan (the 2013 Plan), and in November 2013, our stockholders approved the 2013 Plan, which became effective as of December 3, 2013. As of December 2, 2013, we suspended the 2010 Plan, and no additional awards may be granted under the 2010 Plan. Any shares of common stock covered by awards granted under the 2010 Plan that terminate after December 2, 2013 by expiration, forfeiture, cancellation, or other means without the issuance of such shares will be added to the 2013 Plan reserve. As of March 31, 2022, the total number of shares of common stock available for issuance under the 2013 Plan is 15,322,826. Unless otherwise determined by the Board, beginning January 1, 2014, and continuing until the expiration of the 2013 Plan, the total number of shares of common stock available for issuance under the 2013 Plan will automatically increase annually on January 1 of each year by 4% of the total number of issued and outstanding shares of common stock as of December 31 of the immediately preceding year. Pursuant to approval by the Board, the total number of shares of common stock available for issuance under the 2013 Plan was increased by 2,374,222 shares on January 1, 2022. As of March 31, 2022, a total of 14,068,696 options have been granted under the 2013 Plan. In November 2013, the Board and our stockholders approved the ESPP, which became effective as of December 5, 2013. We have reserved a total of 581,286 shares of common stock for issuance under the ESPP. Unless otherwise determined by the Board, beginning on January 1, 2014, and continuing until the expiration of the ESPP, the total number of shares of common stock available for issuance under the ESPP will automatically increase annually on January 1 by the lesser of (i) 1% of the total number of issued and outstanding shares of common stock as of December 31 of the immediately preceding year, or (ii) 621,814 shares of common stock. Pursuant to approval by the Board, the total number of shares of common stock available for issuance under the ESPP was increased by 1%, which is 593,555 shares, on January 1, 2022. As of March 31, 2022, we have issued a total of 529,852 shares of common stock under the ESPP. During the three months ended March 31, 2022, the Company awarded 734,989 RSUs to certain employees. The standard vesting of these awards is generally in three equal annual installments and is contingent on continued service to the Company. The fair value of these awards is determined based on the intrinsic value of the stock on the date of grant and will be recognized as stock-based compensation expense over the requisite service period. As of March 31, 2022, a total of 1,859,476 RSUs have been granted under the 2013 Plan. Total employee, director and non-employee stock-based compensation expense recognized for the three months ended March 31, 2022 and 2021 are as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, ​ 2022 2021 General and administrative ​ $ 3,674 ​ $ 2,737 Research and development ​ 7,131 ​ 5,556 ​ ​ $ 10,805 ​ $ 8,293 ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, ​ ​ 2022 2021 Stock options ​ $ 6,833 ​ $ 6,530 ESPP ​ ​ 301 ​ ​ 248 RSUs ​ ​ 3,671 ​ ​ 1,515 ​ ​ $ 10,805 ​ $ 8,293 ​ The following table summarizes option activity under our stock plans and related information: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted Weighted ​ ​ ​ ​ ​ ​ Average Average ​ ​ ​ ​ Number of ​ Exercise Remaining ​ Aggregate ​ ​ Shares Subject ​ Price Contractual ​ Intrinsic ​ ​ to Outstanding ​ (Per Term ​ Value ​ ​ Options ​ Share) (in years) ​ (in thousands) Balance at December 31, 2021 8,676,329 ​ $ 29.11 ​ ​ 6.65 ​ $ 100,057 Options granted 1,668,623 ​ $ 30.22 ​ ​ ​ ​ ​ ​ Options forfeited (67,331) ​ $ 38.01 ​ ​ ​ ​ ​ ​ Options exercised (36,500) ​ $ 20.03 ​ ​ ​ ​ ​ ​ Balance at March 31, 2022 10,241,121 ​ $ 29.26 ​ ​ 6.91 ​ $ 30,626 Exercisable ​ 6,080,310 ​ $ 25.51 ​ ​ 5.46 ​ $ 30,602 ​ We calculate the intrinsic value as the difference between the exercise price of the options and the closing price of common stock of $26.68 per share as of March 31, 2022. The weighted-average fair value of options granted during the three-month periods ended March 31, 2022 and 2021 were $15.85 and $22.83 per share, respectively. There were 1,321,917 options granted during the three-month period ended March 31, 2021. We estimated the fair value of each stock option using the Black-Scholes option-pricing model based on the date of grant of such stock option with the following weighted average assumptions for the three months ended March 31, 2022 and 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Options ​ ​ Three Months Ended ​ ​ ​ March 31, ​ 2022 2021 Expected term (years) ​ 6.4 6.2 ​ Expected volatility ​ 53.0 % 55.6 % Risk-free interest rate ​ 1.78 % 1.02 % Expected dividend yield ​ — % — % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ESPP ​ ​ Three Months Ended ​ ​ March 31, ​ 2022 2021 Expected term (years) 0.5 - 2.0 0.5 - 2.0 ​ Expected volatility ​ 55.7 % 50.8 - 66.4 % Risk-free interest rate 0.13 - 0.67 % 0.09 - 1.65 % Expected dividend yield ​ — % — % ​ As of March 31, 2022, the unamortized compensation expense related to unvested stock options was $72.9 million. The remaining unamortized compensation expense will be recognized over the next 3.0 years. As of March 31, 2022, the unamortized compensation expense under our ESPP was $2.0 million. The remaining unamortized expense will be recognized over the next 1.7 years. The following table summarizes the RSU activity for the three-month period ended March 31, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ Restricted ​ Average Grant ​ ​ Stock ​ Date Fair Value ​ ​ Units ​ (Per unit) ​ ​ ​ ​ ​ ​ Unvested RSUs at December 31, 2021 826,148 ​ $ 37.79 Granted 734,989 ​ ​ 29.93 Vested (137,134) ​ ​ 38.20 Forfeited (22,602) ​ ​ 37.41 Unvested RSUs at March 31, 2022 1,401,401 ​ $ 33.64 ​ As of March 31, 2022, the unamortized compensation expense related to unvested RSUs was $42.3 million. The remaining unamortized expense will be recognized over the next 2.3 years.

Leases

Leases	3 Months Ended
	Mar. 31, 2022
Leases
Leases	​ 7. Leases ​ The Company leases office and laboratory space in Monrovia, California under a lease that expires in December 2025 with an option to renew for an additional five years at then market rates. In July 2017, under a separate agreement, the Company entered into a lease for additional space in the same building with a lease that continues through September 2022, also with an option to renew for an additional five years . The Company has assessed that it is unlikely to exercise either of the lease term extension options. In June 2021, the Company entered into an Agreement of Lease (Lease Agreement) for laboratory and office space in Pasadena, California, which will expire in July 2035. The Lease Agreement provides for two separate phases of lease and occupancy. The first phase commences on August 1, 2022 and provides the Company with an improvement allowance up to $17.0 million. The second phase of the lease agreement will commence no later than September 30, 2026 and includes an additional improvement allowance up to $3.3 million. The Company leases additional office space in San Diego, California through August 2022, with an option to extend for an additional five years . The Company is currently negotiating for an extension of the term of the lease under existing terms. The Company also leases additional office space in Monrovia, California under a lease that extends through January 2023, with an option to extend for an additional two years . The Company has assessed that it is unlikely to exercise the option to extend the lease term. The Company’s lease agreements do not contain any residual value guarantees or restrictive covenants. The following table reconciles the undiscounted cash flows for the operating leases at March 31, 2022 to the operating lease liabilities recorded on the balance sheet (in thousands): ​ ​ ​ ​ Years ending December 31, ​ ​ For the remainder of 2022 ​ $ 1,376 2023 ​ 5,566 2024 ​ ​ 5,713 2025 ​ ​ 5,817 2026 ​ ​ 5,279 2027 ​ ​ 5,433 Thereafter ​ ​ 46,685 Total undiscounted lease payments ​ ​ 75,869 Less: Tenant allowance ​ ​ (16,137) Less: Imputed interest ​ ​ (24,838) Present value of lease payments ​ $ 34,894 ​ ​ ​ ​ Lease liabilities - short-term ​ $ 936 Lease liabilities - long-term ​ ​ 33,958 Total lease liabilities ​ $ 34,894 ​ The following table summarizes lease costs and cash payments for the three months ended March 31, 2022 and 2021 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, ​ ​ 2022 2021 ​ ​ ​ ​ ​ ​ ​ Operating lease cost ​ $ 1,562 ​ $ 614 Variable lease cost ​ ​ 99 ​ ​ 10 Total lease costs ​ $ 1,661 ​ $ 624 ​ ​ ​ ​ ​ ​ ​ Cash paid for amounts included in ​ ​ ​ ​ ​ ​ the measurement of lease liabilities ​ $ 684 ​ $ 499 ​ As of March 31, 2022, the weighted-average remaining lease term for operating leases is 12.3 years, and the weighted-average discount rate for operating leases is 5.8% . As of March 31, 2021, the weighted-average remaining lease term for operating leases is 7.3 years, and the weighted-average discount rate for operating leases is 5.5% .

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2022
Commitments and Contingencies
Commitments and Contingencies	​ 8. Commitments and Contingencies ​ From time to time, the Company may be subject to various litigation and related matters arising in the ordinary course of business. The Company does not believe it is currently subject to any material matters where there is at least a reasonable possibility that a material loss may be incurred. The Company is obligated to make future payments to third parties under in-license agreements, including sublicense fees, royalties, and payments that become due and payable on the achievement of certain development and commercialization milestones. As the amount and timing of sublicense fees and the achievement and timing of these milestones are not probable and estimable, such commitments have not been included on the Company’s balance sheet. The Company has also entered into agreements with third-party vendors that will require us to make future payments upon the delivery of goods and services in future periods.

Collaboration and Licensing Agr

Collaboration and Licensing Agreements	3 Months Ended
	Mar. 31, 2022
Collaboration and Licensing Agreements
Collaboration and Licensing Agreements	9. Collaboration and Licensing Agreements ​ The following is a summary description of the material revenue arrangements, including arrangements that generated revenue in the three months ended March 31, 2022 and 2021. Alexion Pharmaceuticals, Inc. In January 2013, the Company entered into an Option and License Agreement (the Alexion Agreement) with Alexion Pharmaceuticals, Inc. (Alexion). Under the terms of the Alexion Agreement, the Company granted to Alexion an exclusive research license, with limited sublicensing rights, to make and use the Company’s Xtend technology to evaluate and advance compounds. Alexion exercised its rights to one target program, ALXN1210, which is now marketed as Ultomiris®. The Company is eligible to receive contractual milestones for certain commercial achievements and is also entitled to receive royalties based on a percentage of net sales of Ultomiris sold by Alexion, its affiliates or its sublicensees, which percentage is in the low single digits. Alexion’s royalty obligations continue on a product-by-product and country-by-country basis until the expiration of the last-to-expire valid claim in a licensed patent covering the applicable product in such country. Under ASC 606, Revenue from Contracts with Customers Amgen Inc. In September 2015, the Company entered into a research and license agreement (the Amgen Agreement) with Amgen Inc. (Amgen) to develop and commercialize bispecific antibody product candidates using the Company’s proprietary XmAb bispecific Fc technology. Under the Amgen Agreement, Amgen applied our bispecific Fc technology to create AMG 509, a STEAP1 x CD3 XmAb 2+1 bispecific antibody, which is currently being developed by Amgen in a Phase 1 study. No revenue was recognized under the Amgen Agreement during the three months ended March 31, 2022 or 2021. As of March 31, 2022, there is no deferred revenue related to the arrangement. Astellas Pharma Inc. Effective March 29, 2019, the Company entered into a Research and License Agreement (the Astellas Agreement) with Astellas Pharma Inc. (Astellas). Pursuant to the Astellas Agreement, the Company applied its bispecific Fc technology to research antibodies provided by Astellas to generate bispecific antibody candidates and returned the candidates to Astellas for further development and commercialization. Pursuant to the Astellas Agreement, the Company received an upfront payment of $15.0 million and is eligible to receive up to $240.0 million in milestones, which include $32.5 million in development milestones, $57.5 million in regulatory milestones and $150.0 million in sales milestones. Astellas is currently advancing ASP2138, a CLDN18.2 x CD3 bispecific antibody, a candidate from the collaboration, into clinical development. At March 31, 2022, the Company recorded a contract asset of $5.0 million related to a future development milestone. The Company recognized $5.0 million of revenue for the three months ended March 31, 2022; no revenue was recognized related to the arrangement for the three months ended March 31, 2021. As of March 31, 2022, there is a contract asset of $5.0 million, and there is no deferred revenue related to the arrangement. Astria Therapeutics, Inc. In May 2018, the Company entered into an agreement with Quellis, pursuant to which the Company provided Quellis a non-exclusive license to its Xtend Fc technology to apply to an identified antibody. Quellis is responsible for all development and commercialization activities. The Company received an equity interest in Quellis and is eligible to receive development, regulatory and sales milestones, and royalties in the mid-single digit percentage range on net sales of approved products. In January 2021, Quellis merged into Astria (formerly Catabasis), and the Company received common stock and preferred stock of Astria in exchange for its equity in Quellis. The Company recognized an increase in the fair value of its equity interest for the exchange of shares, which was recorded as unrealized gain for the three months ended March 31, 2021. The Astria preferred stock is carried at its original cost and is reviewed for impairment or other changes at each reporting period. The Company recognized an unrealized gain of $0.8 million related to its equity interest in Astria for the three months ended March 31, 2022. There is no deferred revenue as of March 31, 2022 related to this agreement. Genentech, Inc., and F. Hoffmann-La Roche Ltd In February 2019, the Company entered into a collaboration and license agreement (the Genentech Agreement) with Genentech, Inc. and F. Hoffmann-La Roche Ltd (collectively, Genentech) for the development and commercialization of novel IL-15 collaboration products (Collaboration Products), including XmAb306 (also named RG6323), the Company’s IL-15/IL-15Ra candidate. Pursuant to the Genentech Agreement, XmAb306 is designated as a development program and all costs incurred for developing XmAb306 from March 8, 2019, the effective date of the Genentech Agreement, are being shared with Genentech under the initial cost-sharing percentage of 45%. Pursuant to the Genentech Agreement, the Company and Genentech conducted joint research activities for a two-year period to identify and discover additional IL-15 candidates developed from the Company’s cytokine and bispecific technologies. The two-year research term expired in March 2021. The Company is eligible for clinical milestone payments for new Collaboration Products identified from the research efforts. The Company did not recognize revenue for the three months ended March 31, 2022. For the three months ended March 31, 2021, the Company recognized $0.2 million of revenue. As of March 31, 2022, there is a $2.7 million payable related to cost-sharing development activities during the first quarter of 2022 for the program being developed under the Genentech Agreement. There is no deferred revenue as of March 31, 2022, as obligations to perform research activities have expired. Gilead Sciences, Inc. In January 2020, the Company entered into a Technology License Agreement (the Gilead Agreement) with Gilead Sciences, Inc. (Gilead), pursuant to which the Company provided an exclusive license to its Cytotoxic Fc and Xtend Fc technologies for an initial identified antibody and three additional antibodies directed to the same molecular target. The Company is eligible to receive development, regulatory and sales milestones for each product incorporating the antibodies selected. In addition, the Company is eligible to receive royalties in the low-single digit percentage range on net sales of approved products. The Company did not recognize any revenue related to the Gilead Agreement for the three months ended March 31, 2022 or 2021. There is no deferred revenue as of March 31, 2022 related to this agreement. INmune Bio, Inc. In October 2017, the Company entered into a License Agreement (the INmune Agreement) with INmune. Under the terms of the INmune Agreement, the Company provided INmune with an exclusive license to certain rights to a proprietary protein, XPro1595. In connection with the agreement, the Company received shares of INmune common stock. During the three months ended June 30, 2021, the Company determined that it should no longer record its investment in INmune under the equity method and recorded its investment in INmune pursuant to ASC 321. For the three months ended March 31, 2022, the Company recorded $3.4 million of unrealized loss related to its investment in INmune. Janssen Biotech, Inc. Janssen Agreement In November 2020, the Company entered into a Collaboration and License Agreement (the Janssen Agreement) with Janssen Biotech, Inc. (Janssen) pursuant to which the Company and Janssen conducted research and development activities to discover novel CD28 bispecific antibodies for the treatment of prostate cancer with Janssen maintaining exclusive worldwide rights to develop and commercialize licensed products identified from the research activities. Under the Janssen Agreement, the Company conducted research activities and applied its bispecific Fc technology to antibodies targeting prostate cancer provided by Janssen. Upon completion of the research activities Janssen had a candidate selection option to advance an identified candidate for development and commercialization. In November 2021, the Company completed its performance obligations under the research activities and delivered CD28 bispecific antibodies to Janssen, and Janssen exercised its candidate selection option to select a bispecific CD28 antibody for further development. Janssen will assume full responsibility for development and commercialization of the CD28 bispecific antibody candidate. Pursuant to the Janssen Agreement, the Company received an upfront payment of $50.0 million and is eligible to receive up to $662.5 million in milestones which includes $161.9 million in development milestones, $240.6 million in regulatory milestones and $260.0 million in sales milestones. If commercialized, the Company is eligible to receive royalties on net sales in the high-single to low-double digit percentage range. Second Janssen Agreement On October 1, 2021, the Company entered into a second Collaboration and License Agreement (the Second Janssen Agreement) with Janssen pursuant to which the Company granted Janssen an exclusive worldwide license to develop, manufacture, and commercialize plamotamab, the Company’s CD20 x CD3 development candidate, and pursuant to which Xencor and Janssen will conduct research and development activities to discover novel CD28 bispecific antibodies. The parties will conduct joint research activities for up to a two-year period to discover XmAb bispecific antibodies against CD28 and undisclosed B cell tumor-targets with Janssen receiving exclusive worldwide rights, subject to certain Xencor opt-in rights, to develop, manufacture and commercialize pharmaceutical products that contain one or more of such discovered antibodies (CD28 Licensed Antibodies). The Agreement became effective on November 5, 2021. Pursuant to the Second Janssen Agreement, the Company received an upfront payment of $100.0 million and is eligible to receive up to $1,187.5 million in milestones which include $289.4 million in development milestones, $378.1 million in regulatory milestones and $520.0 million in sales milestones. Under the terms of the Stock Purchase Agreement, Johnson & Johnson Innovation, JJDC, Inc. (JJDC), agreed to purchase $25.0 million of newly issued unregistered shares of the Company’s common stock, priced at a 30-day volume-weighted average price of $33.4197 per share as of October 1, 2021. The Company issued JJDC 748,062 shares of its common stock which had a fair market value of $28.9 million when the shares were transferred. The Company will collaborate with Janssen on further clinical development of plamotamab with Janssen and share development costs with Janssen paying 80% and the Company paying 20% of certain development costs. The Company is generally responsible for conducting research activities under the Second Janssen Agreement, and Janssen is generally responsible for all development, manufacturing, and commercialization activities for CD28 Licensed Antibodies that are advanced. There is a receivable of $3.1 million as of March 31, 2022, related to cost-sharing activities under the Second Janssen Agreement. The Company recognized $1.8 million and $14.6 million of revenue related to the two Janssen agreements for the three months ended March 31, 2022 and 2021, respectively. There is $35.5 million in deferred revenue as of March 31, 2022 related to our obligation to complete research activities under the Second Janssen Agreement. MorphoSys AG In June 2010, the Company entered into a Collaboration and License Agreement with MorphoSys AG (MorphoSys), which was subsequently amended. Under the agreement, we granted MorphoSys an exclusive worldwide license to the Company’s patents and know-how to research, develop and commercialize the XmAb5574 product candidate (subsequently renamed MOR208 and tafasitamab) with the right to sublicense under certain conditions. If certain developmental, regulatory and sales milestones are achieved, the Company is eligible to receive future milestone payments and royalties. The Company recognized $2.3 million and $1.4 million of royalty revenue during the three months ended March 31, 2022 and 2021, respectively. In addition, the Company recognized $12.5 million of milestone revenue during the three months ended March 31, 2021. As of March 31, 2022, there is a receivable of $2.3 million related to estimated royalties due under the arrangement. As of March 31, 2022, there is no deferred revenue related to this agreement. Nestle S.A./Aimmune Therapeutics, Inc. On February 4, 2020, the Company entered into a License, Development and Commercialization Agreement (the Aimmune Agreement) with Nestle S.A. (formerly Aimmune) pursuant to which the Company granted Nestle S.A. an exclusive worldwide license to XmAb7195, which was renamed AIMab7195. The Company received an upfront payment and the Company is eligible to receive development, regulatory and sales milestones, and also tiered royalties on net sales of approved products in the high-single to mid-teen percentage range. Nestle S.A. is responsible for all further development and commercialization of AIM7195 and is currently advancing the program in clinical studies. No revenue was recognized in the three months ended March 31, 2022 or 2021. There is no deferred revenue as of March 31, 2022 related to this agreement. Novartis Institute for Biomedical Research, Inc. In June 2016, the Company entered into a Collaboration and License Agreement (the Novartis Agreement) with Novartis Institutes for BioMedical Research, Inc. (Novartis) to develop and commercialize bispecific and other Fc engineered antibody drug candidates using the Company’s proprietary XmAb technologies and drug candidates. Pursuant to the Novartis Agreement, the Company and Novartis were co-developing vibecotamab worldwide and sharing development costs. In August 2021, Novartis notified the Company it was terminating its rights with respect to the vibecotamab program, which became effective in February 2022. Under the Novartis Agreement, Novartis is responsible for its share of vibecotamab development costs through August 2022. In June 2021, Novartis selected an Fc candidate and received a non-exclusive license to the Company’s Fc technology. Novartis will assume full responsibility for development and commercialization of the licensed Fc product candidate. The Company is eligible to receive development, clinical, and sales milestones and royalties on net sales of approved products for the licensed Fc candidate. No revenue was recognized during the three months ended March 31, 2022 or 2021 from the Novartis Agreement. As of March 31, 2022, there is a receivable of $0.5 million related to cost-sharing of development activities for the first quarter of 2022 for the vibecotamab program. There is no deferred revenue as of March 31, 2022. Vir Biotechnology, Inc. In the third quarter of 2019, the Company entered into a Patent License Agreement (the Vir Agreement) with Vir Biotechnology, Inc. (Vir) pursuant to which the Company provided a non-exclusive license to its Xtend technology for up to two targets. In March 2020, the Company entered into a second Patent License Agreement (the Second Vir Agreement) with Vir pursuant to which the Company provided a non-exclusive license to its Xtend technology to extend the half-life of two novel antibodies that Vir is investigating as potential treatments for patients with COVID-19. Under the terms of the Second Vir Agreement, Vir is responsible for all research, development, regulatory and commercial activities for the antibodies, and the Company is eligible to receive royalties on the net sales of approved products in the mid-single digit percentage range. In May 2021, the FDA granted emergency use authorization (EUA) to Vir’s COVID-19 antibody, sotrovimab (VIR-7831), for the treatment of mild-to-moderate COVID-19 in high-risk adults and patients. In February 2021, the Company entered into the Vir Amendment No. 1 to the Vir Agreement and the Vir Amendment No. 1 to the Second Vir Agreement (collectively, the Vir Amendments), in each case, pursuant to which the Company provided a non-exclusive license to additional Fc technology for the targets previously identified in the Vir Agreement and the Second Vir Agreement, respectively. If Vir incorporates additional Fc technologies in the identified targets, the Company is eligible to receive additional royalties on net sales of approved products from low to mid-single digit range. The Company recognized $70.3 million of royalty revenue for the three months ended March 31, 2022. No revenue was recognized for the three months ended March 31, 2021. There is a receivable of $69.8 million related to estimated royalty due under this agreement. There is no deferred revenue as of March 31, 2022 related to this agreement. Viridian Therapeutics, Inc. In December 2020, the Company entered into a Technology License Agreement (Viridian Agreement) with Viridian, pursuant to which the Company provided Viridian a non-exclusive license to its Xtend Fc technology and an exclusive license to apply its Xtend Fc technology to antibodies targeting IGF-1R. Viridian is responsible for all development and commercialization activities. The Company received an upfront payment and is eligible to receive development, regulatory and sales milestones, and royalties on net sales in the mid-single digit percentage range. In December 2021, the Company entered into a second Technology License Agreement (Second Viridian Agreement) with Viridian for a non-exclusive license to certain antibody libraries developed by the Company. Under the Second Viridian Agreement, Viridian received a one-year research license to review the antibodies and the right to select up to three antibodies for further development. Viridian is responsible for all further development of the selected antibodies. The Company received an upfront payment and is eligible to receive development, regulatory and sales milestones, in addition to royalties on net sales of approved products under the Second Viridian Agreement. The Company reported unrealized loss in other income of $0.9 million for the three months ended March 31, 2022 related to the shares of Viridian common stock. The Company did not recognize revenue for the three months ended March 31, 2022 or 2021. There is no deferred revenue as of March 31, 2022 related to this agreement. Zenas BioPharma Limited In November 2020, the Company entered into a License Agreement (the Zenas Agreement) with Zenas, pursuant to which the Company granted Zenas exclusive, worldwide rights to develop and commercialize three preclinical-stage Fc-engineered drug candidates: XmAb6755, XPro9523 and XmAb10171. Under the Zenas Agreement, Zenas will be responsible for all further development and commercialization activities for the drug candidates. The Company received a 15% equity interest in Zenas with a fair value of $16.1 million and is eligible to receive royalties on net sales of approved products in the mid-single digit to mid-teen percentage range. The equity in Zenas is recorded at the fair value as of the date of the Zenas Agreement and is reviewed each reporting period for impairment or other evidence of change in value. In November 2021, the Company entered into a second License Agreement (Second Zenas Agreement) with Zenas, in which we licensed the exclusive worldwide rights to develop and commercialize the Company’s obexelimab (XmAb5871) drug candidate. Under the Second Zenas Agreement, Zenas will be responsible for all further development and commercialization activities for obexelimab. The Company received a warrant to acquire additional equity in Zenas and is eligible to receive development, regulatory and sales milestones, and royalties on net sales of approved products in the mid-single digit to mid-teen percentage range. The warrant in Zenas is recorded at its fair value as of the date of the Second Zenas Agreement and is reviewed each reporting period for impairment or other evidence of change in value. The Company did not record an impairment or change in the value of the Zenas equity or the warrant in Zenas in the three months ended March 31, 2022. The Company did not recognize any revenue related to the Zenas Agreement for the three months ended March 31, 2022 or 2021. There is no deferred revenue as of March 31, 2022 related to this agreement. Revenue earned The revenues recorded for the three months ended March 31, 2022 and 2021 were earned principally from the following licensees (in millions): ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, ​ ​ 2022 ​ 2021 ​ ​ ​ ​ ​ Alexion $ 6.1 $ 5.3 Astellas ​ ​ 5.0 ​ ​ — Genentech ​ ​ — ​ ​ 0.2 Janssen ​ ​ 1.8 ​ ​ 14.6 MorphoSys ​ ​ 2.3 ​ ​ 13.9 Vir ​ ​ 70.3 ​ — Total ​ $ 85.5 ​ $ 34.0 ​ The table below summarizes the disaggregation of revenue recorded for the three months ended March 31, 2022 and 2021 (in millions): ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, ​ ​ 2022 ​ 2021 ​ ​ ​ ​ ​ Research collaboration $ 1.8 $ 14.8 Milestone ​ ​ 5.0 ​ 12.5 Royalties ​ ​ 78.7 ​ ​ 6.7 Total ​ $ 85.5 ​ $ 34.0 ​ Remaining Performance Obligations and Deferred Revenue The Company’s remaining performance obligation as of March 31, 2022 is conducting research activities pursuant to research plans under the Second Janssen Agreement. The Company’s obligation to perform research services under the Genentech and the Novartis Agreements ended upon expiration of the respective research terms for each agreement in the second quarter of 2021. As of March 31, 2022 and 2021, the Company has deferred revenue of $35.5 million and $77.8 million, respectively. All deferred revenue as of March 31, 2022 is classified as current liabilities as the Company’s obligations to perform services are due on demand when requested by Janssen under the Second Janssen Agreement.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2022
Income Taxes
Income Taxes	10. Income taxes ​ There was no provision for income taxes for the three months ended March 31, 2022 or 2021. Beginning in 2022, the Tax Cuts and Jobs Act (TCJA) requires taxpayers to capitalize certain research and development costs and amortize them over five or fifteen years pursuant to Internal Revenue Code Section 174. Previously, such costs could be deducted in the period they were incurred. This provision may increase our taxable income for the tax year ended December 31, 2022 and result in additional cash payments for our federal income taxes. As of March 31, 2022, the Company’s deferred income tax assets, consisting primarily of net operating loss and tax credit carryforwards, have been fully offset by a valuation allowance.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Polices)	3 Months Ended
	Mar. 31, 2022
Summary of Significant Accounting Policies
Basis of Presentation	Basis of Presentation The accompanying unaudited interim financial statements for Xencor, Inc. (the Company, Xencor, we or us) have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information. The financial statements include all adjustments (consisting only of normal recurring adjustments) that the management of the Company believes are necessary for a fair presentation of the periods presented. The preparation of interim financial statements requires the use of management’s estimates and assumptions that affect reported amounts of assets and liabilities at the date of the interim financial statements and the reported revenues and expenditures during the reported periods. These interim financial results are not necessarily indicative of the results expected for the full fiscal year or for any subsequent interim period. The accompanying unaudited interim financial statements and related notes should be read in conjunction with the audited financial statements and notes thereto included in the Company’s 2021 Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on February 24, 2022.
Use of Estimates	Use of Estimates The preparation of interim financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, other comprehensive gain (loss) and the related disclosures. On an ongoing basis, management evaluates its estimates, including estimates related to its accrued clinical trial and manufacturing development expenses, stock-based compensation expense, evaluation of intangible assets, investments, leases and other assets for evidence of impairment, fair value measurements, and contingencies. Significant estimates in these interim financial statements include estimates made for royalty revenue, accrued research and development expenses, stock-based compensation expenses, intangible assets, incremental borrowing rate for right-of-use asset and lease liability, estimated standalone selling price of performance obligations, estimated time for completing delivery of performance obligations under certain arrangements, the likelihood of recognizing variable consideration, the carrying value of equity instruments without a readily determinable fair value, and recoverability of deferred tax assets.
Intangible Assets	Intangible Assets The Company maintains definite-lived intangible assets related to certain capitalized costs of acquired licenses and third-party costs incurred in establishing and maintaining its intellectual property rights to its platform technologies and development candidates. These assets are amortized over their useful lives, which are estimated to be the remaining patent life or the contractual term of the license. The straight-line method is used to record amortization expense. The Company assesses its intangible assets for impairment if indicators are present or changes in circumstances suggest that impairment may exist. There was no impairment charge recorded for the three months ended March 31, 2022 and 2021. The Company capitalizes certain in-process intangible assets that are then abandoned when they are no longer pursued or used in current research activities. There was no material abandonment of in-process intangible assets during the three months ended March 31, 2022 and 2021.
Marketable Debt and Equity Securities	Marketable Debt and Equity Securities The Company has an investment policy that includes guidelines on acceptable investment securities, minimum credit quality, maturity parameters, and concentration and diversification. The Company invests its excess cash primarily in marketable debt securities issued by investment grade institutions. The Company considers its marketable debt securities to be available-for-sale because it is not more likely than not that the Company will be required to sell the securities before recovery of the amortized cost. These assets are carried at fair value and any impairment losses and recoveries related to the underlying issuer’s credit standing are recognized within other income (expense), while non-credit related impairment losses and recoveries are recognized within accumulated other comprehensive income (loss). There were no impairment losses or recoveries recorded for the three months ended March 31, 2022 and 2021. Accrued interest on marketable debt securities is included in the marketable securities’ carrying value. Each reporting period, the Company reviews its portfolio of marketable debt securities, using both quantitative and qualitative factors, to determine if each security’s fair value has declined below its amortized cost basis. During the three months ended March 31, 2022, the Company recorded an unrealized loss of $5.6 million in its portfolio of marketable debt securities. The unrealized loss is due to the changing interest rate environment and is not due to changes in the credit quality of the underlying securities. The unrealized loss is recorded in other comprehensive income (loss) for the three months ended March 31, 2022. The Company receives equity securities in connection with certain licensing transactions with its partners. These investments in equity securities are carried at fair value with changes in fair value recognized each period and reported within other income (expense). For equity securities with a readily determinable fair value, the Company re-measures these equity investments at each reporting period until such time that the investment is sold or disposed. If the Company sells an investment, any realized gain or loss on the sale of the securities will be recognized within other income (expense) in the Statements of Comprehensive Income (Loss) in the period of sale. The Company also has investments in equity securities without a readily determinable fair value, where the Company elects the measurement alternative to record the investment at its initial cost minus impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. There was no impairment charge recorded for the three months ended March 31, 2022 and 2021, in connection with equity securities without a readily determinable fair value.
Recent Accounting Pronouncements	Recent Accounting Pronouncements There have been no material changes in recently issued or adopted accounting standards from those disclosed in the Company’s 2021 Annual Report on Form 10-K. The Company has reviewed all recently issued accounting pronouncements and does not believe they will have a material impact on our results of operations, financial conditions, or cash flows. There have been no other material changes to the significant accounting policies previously disclosed in the Company’s 2021 Annual Report on Form 10-K.

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2022
Fair Value of Financial Instruments
Schedule of assets recorded at fair value	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (unaudited) ​ December 31, 2021 ​ Total ​ ​ ​ ​ Total ​ ​ ​ ​ ​ ​ Fair Value ​ Level 1 ​ Level 2 ​ Fair Value ​ Level 1 ​ Level 2 Money Market Funds ​ $ 20,742 ​ $ 20,742 ​ $ — ​ $ 123,892 ​ $ 123,892 ​ $ — Corporate Securities ​ ​ 167,984 ​ ​ — ​ ​ 167,984 ​ ​ 144,418 ​ ​ — ​ ​ 144,418 Government Securities ​ ​ 349,109 ​ ​ — ​ ​ 349,109 ​ ​ 309,814 ​ ​ — ​ ​ 309,814 ​ ​ $ 537,835 ​ $ 20,742 ​ $ 517,093 ​ $ 578,124 ​ $ 123,892 ​ $ 454,232

Net Income (Loss) Per Common _2

Net Income (Loss) Per Common Share (Tables)	3 Months Ended
	Mar. 31, 2022
Net Income (Loss) Per Common Share
Schedule of basic and diluted net income (loss) per common share	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, ​ 2022 2021 ​ ​ (in thousands, except share and per share data) Numerator: ​ ​ ​ ​ ​ ​ Net income (loss) attributable to common stockholders ​ $ 23,594 ​ $ (2,487) Denominator: ​ ​ ​ ​ ​ ​ Weighted-average common shares outstanding used in computing basic net income (loss) ​ ​ 59,407,829 ​ ​ 57,997,313 Effect of dilutive securities ​ ​ 1,670,665 ​ ​ — Weighted-average common shares outstanding used in computing diluted net income (loss) ​ ​ 61,078,494 ​ ​ 57,997,313 Basic net income (loss) per common share ​ $ 0.40 ​ $ (0.04) Diluted net income (loss) per common share ​ $ 0.39 ​ $ (0.04)

Marketable Debt and Equity Se_2

Marketable Debt and Equity Securities (Tables)	3 Months Ended
	Mar. 31, 2022
Marketable Debt and Equity Securities
Schedule of marketable securities	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross ​ Gross ​ ​ ​ ​ Amortized Unrealized ​ Unrealized ​ March 31, 2022 ​ Cost ​ Gains ​ Losses ​ Fair Value (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Money Market Funds ​ $ 20,742 ​ $ — ​ $ — ​ $ 20,742 Corporate Securities ​ ​ 169,159 ​ ​ — ​ ​ (1,175) ​ ​ 167,984 Government Securities ​ ​ 355,045 ​ ​ — ​ ​ (5,936) ​ ​ 349,109 ​ ​ $ 544,946 ​ $ — ​ $ (7,111) ​ $ 537,835 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Reported as ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 20,742 Marketable securities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 517,093 Total investments ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 537,835 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross ​ Gross ​ ​ ​ ​ Amortized Unrealized ​ Unrealized ​ December 31, 2021 ​ Cost ​ Gains ​ Losses ​ Fair Value (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Money Market Funds ​ $ 123,892 ​ $ — ​ $ — ​ $ 123,892 Corporate Securities ​ ​ 144,584 ​ ​ — ​ ​ (166) ​ ​ 144,418 Government Securities ​ ​ 311,148 ​ ​ 1 ​ ​ (1,335) ​ ​ 309,814 ​ ​ $ 579,624 ​ $ 1 ​ $ (1,501) ​ $ 578,124 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Reported as ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 123,892 Marketable securities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 454,232 Total investments ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 578,124
Schedule of maturities of marketable securities	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortized Estimated March 31, 2022 ​ Cost ​ Fair Value (in thousands) ​ ​ ​ ​ ​ ​ Mature in one year or less ​ $ 279,863 ​ $ 278,058 Mature within two years ​ ​ 244,341 ​ ​ 239,035 ​ ​ $ 524,204 ​ $ 517,093
Schedule of unrealized losses on available-for-sale investments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less than 12 months ​ 12 months or greater ​ ​ ​ ​ ​ Unrealized ​ ​ ​ ​ Unrealized March 31, 2022 ​ Fair value ​ losses ​ Fair value ​ losses (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Corporate Securities ​ $ 82,738 ​ $ (554) ​ $ 32,184 ​ $ (621) Government Securities ​ ​ 141,865 ​ ​ (1,250) ​ ​ 206,851 ​ ​ (4,686) ​ ​ $ 224,603 ​ $ (1,804) ​ $ 239,035 ​ $ (5,307) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less than 12 months ​ 12 months or greater ​ ​ ​ ​ ​ Unrealized ​ ​ ​ ​ Unrealized December 31, 2021 ​ Fair value ​ losses ​ Fair value ​ losses (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Corporate Securities ​ $ 50,337 ​ $ (51) ​ $ 45,872 ​ $ (115) Government Securities ​ ​ 39,909 ​ ​ (54) ​ ​ 254,593 ​ ​ (1,281) ​ ​ $ 90,246 ​ $ (105) ​ $ 300,465 ​ $ (1,396)
Schedule of equity securities with readily determinable fair value	The Company’s equity securities include securities with a readily determinable fair value. These investments are carried at fair value with changes in fair value recognized each period and reported within other income (expense). For the three months ended March 31, 2022, a loss of $3.4 million was recorded in loss on equity securities under other income (expense) related to these securities. Equity securities with a readily determinable fair value and their fair values (in thousands) as of March 31, 2022 and December 31, 2021 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Fair Value ​ ​ March 31, 2022 ​ December 31, 2021 Astria Common Stock ​ $ 4,294 ​ $ 3,449 INmune Common Stock ​ ​ 15,876 ​ ​ 19,233 Viridian Common Stock ​ ​ 13,260 ​ ​ 14,178 ​ ​ $ 33,430 ​ $ 36,860
Schedule of equity securities without readily determinable fair value	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Carrying Value Carrying Value ​ ​ March 31, 2022 ​ December 31, 2021 Astria Preferred Stock ​ $ 312 ​ $ 312 Zenas Preferred Stock ​ ​ 30,950 ​ ​ 30,950 ​ ​ $ 31,262 ​ $ 31,262
Schedule of net gains and losses	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, ​ 2022 2021 Net (loss) gain recognized on equity securities ​ $ (3,429) ​ $ 12,981 Less: net gain recognized on sale of equity securities ​ — ​ (1) Unrealized (loss) gain recognized on equity securities ​ $ (3,429) ​ $ 12,980

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2022
Stock-Based Compensation
Schedule of total employee, director and non-employee stock-based compensation expense recognized	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, ​ 2022 2021 General and administrative ​ $ 3,674 ​ $ 2,737 Research and development ​ 7,131 ​ 5,556 ​ ​ $ 10,805 ​ $ 8,293 ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, ​ ​ 2022 2021 Stock options ​ $ 6,833 ​ $ 6,530 ESPP ​ ​ 301 ​ ​ 248 RSUs ​ ​ 3,671 ​ ​ 1,515 ​ ​ $ 10,805 ​ $ 8,293
Summary of stock option activity	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted Weighted ​ ​ ​ ​ ​ ​ Average Average ​ ​ ​ ​ Number of ​ Exercise Remaining ​ Aggregate ​ ​ Shares Subject ​ Price Contractual ​ Intrinsic ​ ​ to Outstanding ​ (Per Term ​ Value ​ ​ Options ​ Share) (in years) ​ (in thousands) Balance at December 31, 2021 8,676,329 ​ $ 29.11 ​ ​ 6.65 ​ $ 100,057 Options granted 1,668,623 ​ $ 30.22 ​ ​ ​ ​ ​ ​ Options forfeited (67,331) ​ $ 38.01 ​ ​ ​ ​ ​ ​ Options exercised (36,500) ​ $ 20.03 ​ ​ ​ ​ ​ ​ Balance at March 31, 2022 10,241,121 ​ $ 29.26 ​ ​ 6.91 ​ $ 30,626 Exercisable ​ 6,080,310 ​ $ 25.51 ​ ​ 5.46 ​ $ 30,602
Schedule of weighted average assumptions used for estimation of fair value of stock options	​ ​ ​ ​ ​ ​ ​ ​ ​ Options ​ ​ Three Months Ended ​ ​ ​ March 31, ​ 2022 2021 Expected term (years) ​ 6.4 6.2 ​ Expected volatility ​ 53.0 % 55.6 % Risk-free interest rate ​ 1.78 % 1.02 % Expected dividend yield ​ — % — %
Schedule of weighted average assumptions used for estimation of fair value of ESPP	​ ​ ​ ​ ​ ​ ​ ​ ​ ESPP ​ ​ Three Months Ended ​ ​ March 31, ​ 2022 2021 Expected term (years) 0.5 - 2.0 0.5 - 2.0 ​ Expected volatility ​ 55.7 % 50.8 - 66.4 % Risk-free interest rate 0.13 - 0.67 % 0.09 - 1.65 % Expected dividend yield ​ — % — %
Summary of restricted stock unity activity	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ Restricted ​ Average Grant ​ ​ Stock ​ Date Fair Value ​ ​ Units ​ (Per unit) ​ ​ ​ ​ ​ ​ Unvested RSUs at December 31, 2021 826,148 ​ $ 37.79 Granted 734,989 ​ ​ 29.93 Vested (137,134) ​ ​ 38.20 Forfeited (22,602) ​ ​ 37.41 Unvested RSUs at March 31, 2022 1,401,401 ​ $ 33.64

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2022
Leases
Schedule of operating lease liabilities maturities	The following table reconciles the undiscounted cash flows for the operating leases at March 31, 2022 to the operating lease liabilities recorded on the balance sheet (in thousands): ​ ​ ​ ​ Years ending December 31, ​ ​ For the remainder of 2022 ​ $ 1,376 2023 ​ 5,566 2024 ​ ​ 5,713 2025 ​ ​ 5,817 2026 ​ ​ 5,279 2027 ​ ​ 5,433 Thereafter ​ ​ 46,685 Total undiscounted lease payments ​ ​ 75,869 Less: Tenant allowance ​ ​ (16,137) Less: Imputed interest ​ ​ (24,838) Present value of lease payments ​ $ 34,894 ​ ​ ​ ​ Lease liabilities - short-term ​ $ 936 Lease liabilities - long-term ​ ​ 33,958 Total lease liabilities ​ $ 34,894
Summary of lease costs and cash disclosures	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, ​ ​ 2022 2021 ​ ​ ​ ​ ​ ​ ​ Operating lease cost ​ $ 1,562 ​ $ 614 Variable lease cost ​ ​ 99 ​ ​ 10 Total lease costs ​ $ 1,661 ​ $ 624 ​ ​ ​ ​ ​ ​ ​ Cash paid for amounts included in ​ ​ ​ ​ ​ ​ the measurement of lease liabilities ​ $ 684 ​ $ 499

Collaboration and Licensing A_2

Collaboration and Licensing Agreements (Tables)	3 Months Ended
	Mar. 31, 2022
Collaboration and Licensing Agreements
Schedule of revenue by licensees	The revenues recorded for the three months ended March 31, 2022 and 2021 were earned principally from the following licensees (in millions): ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, ​ ​ 2022 ​ 2021 ​ ​ ​ ​ ​ Alexion $ 6.1 $ 5.3 Astellas ​ ​ 5.0 ​ ​ — Genentech ​ ​ — ​ ​ 0.2 Janssen ​ ​ 1.8 ​ ​ 14.6 MorphoSys ​ ​ 2.3 ​ ​ 13.9 Vir ​ ​ 70.3 ​ — Total ​ $ 85.5 ​ $ 34.0
Schedule of disaggregation of revenue	The table below summarizes the disaggregation of revenue recorded for the three months ended March 31, 2022 and 2021 (in millions): ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, ​ ​ 2022 ​ 2021 ​ ​ ​ ​ ​ Research collaboration $ 1.8 $ 14.8 Milestone ​ ​ 5.0 ​ 12.5 Royalties ​ ​ 78.7 ​ ​ 6.7 Total ​ $ 85.5 ​ $ 34.0

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Summary of Significant Accounting Policies
Impairment of intangible assets	$ 0	$ 0
Impairment loss or recoveries	0	0
Net unrealized (loss) gain on marketable debt securities	$ (5,611,000)	$ 23,000

Fair Value of Financial Instr_3

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021
Fair Value of Financial Instruments
Money Market Funds	$ 78,267	$ 143,480
Marketable Securities	517,093
Equity Securities with Readily Determinable Fair Value	33,430	36,860
Total Fair Value	537,835	578,124
Transfers from level 1 to level 2	0		$ 0
Transfers from level 2 to level 1	0		$ 0
Money Market Funds
Fair Value of Financial Instruments
Money Market Funds	20,742	123,892
Corporate Securities
Fair Value of Financial Instruments
Marketable Securities	167,984	144,418
Government Securities
Fair Value of Financial Instruments
Marketable Securities	349,109	309,814
Level 1
Fair Value of Financial Instruments
Total Fair Value	20,742	123,892
Level 1 | Money Market Funds
Fair Value of Financial Instruments
Money Market Funds	20,742	123,892
Level 2
Fair Value of Financial Instruments
Total Fair Value	517,093	454,232
Level 2 | Corporate Securities
Fair Value of Financial Instruments
Marketable Securities	167,984	144,418
Level 2 | Government Securities
Fair Value of Financial Instruments
Marketable Securities	$ 349,109	$ 309,814

Net Income (Loss) Per Common _3

Net Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Numerator:
Net income (loss) attributable to common stockholders	$ 23,594	$ (2,487)
Denominator:
Weighted-average common shares outstanding used in computing basic net income (loss)	59,407,829	57,997,313
Effect of dilutive securities	1,670,665
Weighted-average common shares outstanding used in computing diluted net income (loss)	61,078,494	57,997,313
Basic net income (loss) per common share (in dollars per share)	$ 0.40	$ (0.04)
Diluted net income (loss) per common share (in dollars per share)	$ 0.39	$ (0.04)

Net Income (Loss) Per Common _4

Net Income (Loss) Per Common Share - Anti-dilutive securities (Details)	3 Months Ended
	Mar. 31, 2022shares
Net Income (Loss) Per Common Share
Securities excluded in calculation of EPS	2,556,779

Marketable Debt and Equity Se_3

Marketable Debt and Equity Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Schedule of Available-for-sale Securities
Cash and cash equivalents	$ 78,267	$ 143,480
Investments, amortized cost	544,946	579,624
Investments	537,835	578,124
Total amortized cost	524,204
Gross unrealized gains		1
Gross unrealized losses	(7,111)	(1,501)
Marketable Securities	517,093
Marketable securities
Schedule of Available-for-sale Securities
Marketable Securities	517,093	454,232
Money Market Funds
Schedule of Available-for-sale Securities
Cash and cash equivalents	20,742	123,892
Corporate Securities
Schedule of Available-for-sale Securities
Total amortized cost	169,159	144,584
Gross unrealized losses	(1,175)	(166)
Marketable Securities	167,984	144,418
Government Securities
Schedule of Available-for-sale Securities
Total amortized cost	355,045	311,148
Gross unrealized gains		1
Gross unrealized losses	(5,936)	(1,335)
Marketable Securities	349,109	309,814
Cash and Cash Equivalents
Schedule of Available-for-sale Securities
Cash and cash equivalents	$ 20,742	$ 123,892

Marketable Debt and Equity Se_4

Marketable Debt and Equity Securities - Maturities (Details) $ in Thousands	Mar. 31, 2022USD ($)
Amortized Cost
Maturing in one year or less	$ 279,863
Maturing within two years	244,341
Total amortized cost	524,204
Estimate Fair Value
Maturing in one year or less	278,058
Maturing within two years	239,035
Total estimated fair value	$ 517,093

Marketable Debt and Equity Se_5

Marketable Debt and Equity Securities - Unrealized losses (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Fair value
Fair value, less than 12 months	$ 224,603	$ 90,246
Fair value, 12 months or greater	239,035	300,465
Unrealized losses
Unrealized losses, Less than 12 months	(1,804)	(105)
Unrealized losses, 12 months or greater	(5,307)	(1,396)
Corporate Securities
Fair value
Fair value, less than 12 months	82,738	50,337
Fair value, 12 months or greater	32,184	45,872
Unrealized losses
Unrealized losses, Less than 12 months	(554)	(51)
Unrealized losses, 12 months or greater	(621)	(115)
Government Securities
Fair value
Fair value, less than 12 months	141,865	39,909
Fair value, 12 months or greater	206,851	254,593
Unrealized losses
Unrealized losses, Less than 12 months	(1,250)	(54)
Unrealized losses, 12 months or greater	$ (4,686)	$ (1,281)

Marketable Debt and Equity Se_6

Marketable Debt and Equity Securities - Equity Securities with Readily Determinable Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Equity Securities
Equity Securities with Readily Determinable Fair Value	$ 33,430	$ 36,860
Common Stock
Equity Securities
Equity Securities with Readily Determinable Fair Value	33,430	36,860
Astria/Catabasis | Common Stock
Equity Securities
Equity Securities with Readily Determinable Fair Value	4,294	3,449
INmune | Common Stock
Equity Securities
Equity Securities with Readily Determinable Fair Value	15,876	19,233
Viridian | Common Stock
Equity Securities
Equity Securities with Readily Determinable Fair Value	$ 13,260	$ 14,178

Marketable Debt and Equity Se_7

Marketable Debt and Equity Securities - Equity Securities without Readily Determinable Fair Value (Details) - Preferred Stock - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Equity securities without readily determinable fair value
Equity Securities without Readily Determinable Fair Value	$ 31,262	$ 31,262
Astria/Catabasis
Equity securities without readily determinable fair value
Equity Securities without Readily Determinable Fair Value	312	312
Zenas Bio Pharma Limited
Equity securities without readily determinable fair value
Equity Securities without Readily Determinable Fair Value	$ 30,950	$ 30,950

Marketable Debt and Equity Se_8

Marketable Debt and Equity Securities - Equity Securities Transactions (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Equity Securities
(Loss) gain on equity securities, net	$ (3,429)	$ 12,981
Preferred Stock
Equity Securities
Equity Securities without Readily Determinable Fair Value	31,262		$ 31,262
Astria/Catabasis | Preferred Stock
Equity Securities
Equity Securities without Readily Determinable Fair Value	$ 312		$ 312
Technology License Agreement | Viridian | Common Stock
Equity Securities
Owned investment	717,144
License Agreement | INmune | Common Stock
Equity Securities
Owned investment	1,885,533
Number of shares	1,885,533

Marketable Debt and Equity Se_9

Marketable Debt and Equity Securities - Net gains and losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Marketable Debt and Equity Securities
Net (loss) gain recognized on equity securities	$ (3,429)	$ 12,981
Less: net gain recognized on sale of equity securities		(1)
Unrealized (loss) gain recognized on equity securities	$ (3,429)	$ 12,980

Stock Based Compensation (Detai

Stock Based Compensation (Details)	Jan. 01, 2022shares	Dec. 02, 2013shares	Nov. 30, 2013shares	Mar. 31, 2022itemshares	Mar. 31, 2021shares	Mar. 31, 2022shares
Stock options
Stock-based compensation
Options granted (in shares)				1,668,623	1,321,917
ESPP
Stock-based compensation
Total number of shares of common stock available for issuance			581,286
Annual percentage increase in shares of common stock available for issuance	1.00%
Awards issued under the plan (in shares)						529,852
Annual increase in shares of common stock available for issuance (in shares)	593,555
ESPP | Maximum
Stock-based compensation
Annual percentage increase in shares of common stock available for issuance			1.00%
Annual increase in shares of common stock available for issuance (in shares)			621,814
RSUs
Stock-based compensation
Granted				734,989		1,859,476
Annual installment vesting periods | item				3
The 2013 Plan
Stock-based compensation
Total number of shares of common stock available for issuance	2,374,222			15,322,826		15,322,826
Annual percentage increase in shares of common stock available for issuance				4.00%
Increase in shares of common stock available for issuance (in shares)				2,374,222
Options granted (in shares)						14,068,696
The 2010 Plan
Stock-based compensation
Options granted (in shares)		0

Stock-Based Compensation - Empl

Stock-Based Compensation - Employee expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Stock-based compensation
Total employee, director and non-employee stock-based compensation expense	$ 10,805	$ 8,293
Stock options
Stock-based compensation
Total employee, director and non-employee stock-based compensation expense	6,833	6,530
ESPP
Stock-based compensation
Total employee, director and non-employee stock-based compensation expense	301	248
RSUs
Stock-based compensation
Total employee, director and non-employee stock-based compensation expense	3,671	1,515
General and administrative
Stock-based compensation
Total employee, director and non-employee stock-based compensation expense	3,674	2,737
Research and development
Stock-based compensation
Total employee, director and non-employee stock-based compensation expense	$ 7,131	$ 5,556

Stock-Based Compensation - Opti

Stock-Based Compensation - Option activity (Details) - Stock options - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Number of Shares subject to outstanding options
Balance at the beginning of the period (in shares)	8,676,329
Options granted (in shares)	1,668,623	1,321,917
Options forfeited (in shares)	(67,331)
Options exercised (in shares)	(36,500)
Balance at the end of the period (in shares)	10,241,121		8,676,329
Exercisable options (in shares)	6,080,310
Weighted Average Exercise Price (Per Share)
Balance at the beginning of the period (in dollars per share)	$ 29.11
Options granted (in dollars per share)	30.22
Options forfeited (in dollars per share)	38.01
Options exercised (in dollars per share)	20.03
Balance at the end of the period (in dollars per share)	29.26		$ 29.11
Exercisable (in dollars per share)	$ 25.51
Weighted-average remaining contractual life	6 years 10 months 28 days		6 years 7 months 24 days
Weighted-average remaining contractual life of awards exercisable	5 years 5 months 15 days
Aggregate intrinsic value of options outstanding	$ 30,626		$ 100,057
Aggregate intrinsic value of options exercisable	$ 30,602
Closing price of common stock (in dollars per share)	$ 26.68
Weighted average fair value of options granted (in dollars per share)	$ 15.85	$ 22.83

Stock-Based Compensation - FV o

Stock-Based Compensation - FV of employee stock options (Details) - USD ($) $ in Millions	Mar. 31, 2022	Mar. 31, 2022	Mar. 31, 2021
Stock options
Weighted average assumptions for estimated fair value of employee stock options
Expected volatility (as a percent)		53.00%	55.60%
Risk-free interest rate (as a percent)		1.78%	1.02%
Expected term (years)		6 years 4 months 24 days	6 years 2 months 12 days
Compensation expense
Period to recognize unamortized compensation expense	3 years
Unamortized compensation expense related to unvested options	$ 72.9	$ 72.9
ESPP
Weighted average assumptions for estimated fair value of employee stock options
Expected volatility, low end of range (as a percent)			50.80%
Expected volatility, high end of range (as a percent)			66.40%
Expected volatility (as a percent)		55.70%
Risk-free interest rate, low end of range (as a percent)		0.13%	0.09%
Risk-free interest rate, high end of range (as a percent)		0.67%	1.65%
Compensation expense
Period to recognize unamortized compensation expense	1 year 8 months 12 days
Unamortized compensation expense related to unvested options	$ 2	$ 2
ESPP | Minimum
Weighted average assumptions for estimated fair value of employee stock options
Expected term (years)		6 months	6 months
ESPP | Maximum
Weighted average assumptions for estimated fair value of employee stock options
Expected term (years)		2 years	2 years

Stock Based Compensation - Rest

Stock Based Compensation - Restricted stock units (Details) - RSUs - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	100 Months Ended
	Mar. 31, 2022	Mar. 31, 2022
Stock-based compensation
Beginning balance	826,148
Granted	734,989	1,859,476
Vested	(137,134)
Forfeited	(22,602)
Ending balance	1,401,401	1,401,401
Weighted Average Grant Date Fair Value, Beginning Balance	$ 37.79
Weighted Average Grant Date Fair Value, Granted	29.93
Weighted Average Grant Date Fair Value, Vested	38.20
Weighted Average Grant Date Fair Value, Forfeited	37.41
Weighted Average Grant Date Fair Value, Ending Balance	$ 33.64	$ 33.64
Compensation expense
Unamortized compensation expense related to unvested restricted stock units	$ 42,300	$ 42,300
Period to recognize unamortized compensation expense	2 years 3 months 18 days

Leases (Details)

Leases (Details) $ in Thousands	1 Months Ended
	Jun. 30, 2021item	Jul. 31, 2017	Sep. 30, 2026USD ($)	Aug. 01, 2022USD ($)	Mar. 31, 2022USD ($)	Dec. 31, 2021USD ($)
Lessee, Lease, Description [Line Items]
Option to extend		true
For the remainder of 2022					$ 1,376
2023					5,566
2024					5,713
2025					5,817
2026					5,279
2027					5,433
Thereafter					46,685
Total undiscounted lease payments					75,869
Less: Tenant allowance					(16,137)
Less: Imputed interest					(24,838)
Present value of lease payments					34,894
Lease liability - long-term					$ 33,958	$ 33,969
Monrovia, CA - office and laboratory space
Lessee, Lease, Description [Line Items]
Renewal term					5 years
Monrovia, CA - office and laboratory space with additional space
Lessee, Lease, Description [Line Items]
Renewal term		5 years			2 years
San Diego, CA - office space
Lessee, Lease, Description [Line Items]
Renewal term					5 years
Pasadena, CA - office and laboratory space
Lessee, Lease, Description [Line Items]
Phases of lease term | item	2
Forecast | Pasadena, CA - office and laboratory space
Lessee, Lease, Description [Line Items]
Improvement allowance			$ 3,300	$ 17,000

Leases - Operating lease liabil

Leases - Operating lease liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Leases
Lease liability - short-term	$ 936
Lease liability - long-term	33,958	$ 33,969
Operating lease liabilities	$ 34,894

Leases - Lease costs (Details)

Leases - Lease costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Leases
Operating lease cost	$ 1,562	$ 614
Variable lease cost	99	10
Total lease costs	1,661	624
Cash paid for amounts included in the measurement of lease liabilities	$ 684	$ 499
Remaining lease term	12 years 3 months 18 days	7 years 3 months 18 days
Discount rate	5.80%	5.50%

Collaboration and Licensing A_3

Collaboration and Licensing Agreements (Details)

Nov. 12, 2021USD ($)shares

Oct. 01, 2021USD ($)$ / shares

Mar. 29, 2019USD ($)

Mar. 08, 2019

Dec. 31, 2021USD ($)item

Nov. 30, 2020USD ($)item

Mar. 31, 2020item

Jan. 31, 2020item

Feb. 28, 2019

Jan. 31, 2013Program

Mar. 31, 2022USD ($)agreementshares

Mar. 31, 2021USD ($)

Sep. 30, 2019item

Collaboration research and licensing agreements

Receivable

$ 66,384,000

$ 88,204,000

Revenue recorded

85,495,000

$ 33,965,000

Other income

(96,000)

(11,000)

Net gains recognized on sale of equity securities

1,000

Unrealized (loss) gain recognized on equity securities

(3,429,000)

12,980,000

Net gains recognized on equity securities

(3,429,000)

12,981,000

Deferred revenue

35,500,000

77,800,000

Royalties

Collaboration research and licensing agreements

Revenue recorded

78,700,000

6,700,000

Milestone

Collaboration research and licensing agreements

Revenue recorded

5,000,000

12,500,000

Research collaboration

Collaboration research and licensing agreements

Revenue recorded

1,800,000

14,800,000

Alexion Pharmaceuticals, Inc.

Collaboration research and licensing agreements

Revenue recorded

6,100,000

5,300,000

Astellas

Collaboration research and licensing agreements

Revenue recorded

5,000,000

Genentech

Collaboration research and licensing agreements

Revenue recorded

200,000

Genentech | Collaboration and License Agreement

Collaboration research and licensing agreements

Revenue recognized

200,000

MorphoSys

Collaboration research and licensing agreements

Revenue recorded

2,300,000

13,900,000

Vir

Collaboration research and licensing agreements

Revenue recorded

70,300,000

License, Development, and Commercialization Agreement | Nestle S.A./Aimmune

Collaboration research and licensing agreements

Revenue recognized

0

0

Deferred revenue

0

Option and license agreement | Alexion Pharmaceuticals, Inc.

Collaboration research and licensing agreements

Receivable

11,200,000

Deferred revenue

0

Number of different target programs | Program

1

Option and license agreement | Alexion Pharmaceuticals, Inc. | Royalties

Collaboration research and licensing agreements

Revenue recognized

6,100,000

5,300,000

Research and License Agreement | Amgen, Inc.

Collaboration research and licensing agreements

Revenue recognized

0

0

Deferred revenue

0

Research and License Agreement | Astellas

Collaboration research and licensing agreements

Nonrefundable upfront payment

$ 15,000,000

Potential milestone payment

240,000,000

Revenue recognized

5,000,000

0

Deferred revenue

0

Research and License Agreement | Astellas | Milestone

Collaboration research and licensing agreements

Contract asset

5,000,000

Collaboration and License Agreement | Genentech

Collaboration research and licensing agreements

Initial cost-sharing percentage

45.00%

Research license term

2 years

Revenue recognized

0

Collaboration and License Agreement | Genentech | XmAb24306

Collaboration research and licensing agreements

Cost sharing receivable (payable)

(2,700,000)

Collaboration and License Agreement | Genentech | Research service

Collaboration research and licensing agreements

Deferred revenue

0

Collaboration and License Agreement | Janssen Biotech, Inc

Collaboration research and licensing agreements

Nonrefundable upfront payment

$ 50,000,000

Potential milestone payment

662,500,000

Revenue recognized

$ 1,800,000

14,600,000

Number of collaboration and license agreements | agreement

2

Collaboration and License Agreement | MorphoSys

Collaboration research and licensing agreements

Deferred revenue

$ 0

Collaboration and License Agreement | MorphoSys | Royalties

Collaboration research and licensing agreements

Receivable

2,300,000

Revenue recognized

2,300,000

1,400,000

Collaboration and License Agreement | MorphoSys | Milestone

Collaboration research and licensing agreements

Revenue recognized

12,500,000

Collaboration and License Agreement | Novartis

Collaboration research and licensing agreements

Revenue recognized

0

0

Deferred revenue

0

Collaboration and License Agreement | Novartis | Development

Collaboration research and licensing agreements

Cost sharing receivable (payable)

500,000

Technology License Agreement | Astria/Catabasis

Collaboration research and licensing agreements

Unrealized (loss) gain recognized on equity securities

800,000

Deferred revenue

0

Technology License Agreement | Gilead

Collaboration research and licensing agreements

Revenue recognized

0

0

Deferred revenue

0

Number of compounds | item

3

Technology License Agreement | Viridian

Collaboration research and licensing agreements

Number of antibodies | item

3

Revenue recognized

0

0

Unrealized (loss) gain recognized on equity securities

(900,000)

Deferred revenue

0

License Agreement | INmune

Collaboration research and licensing agreements

Unrealized (loss) gain recognized on equity securities

$ (3,400,000)

License Agreement | INmune | Common Stock

Collaboration research and licensing agreements

Number of shares | shares

1,885,533

License Agreement | Zenas Bio Pharma Limited

Collaboration research and licensing agreements

Revenue recognized

$ 0

0

Purchase amount of share options or equity in noncash transaction

$ 16,100,000

Impairment

0

Deferred revenue

0

Percentage of equity of private company

15.00%

Number of drug candidates | item

3

Patent License Agreement | Vir

Collaboration research and licensing agreements

Deferred revenue

0

Number of different target programs | item

2

2

Patent License Agreement | Vir | Royalties

Collaboration research and licensing agreements

Receivable

69,800,000

Revenue recognized

70,300,000

$ 0

Second Collaboration And License Agreement | Janssen Biotech, Inc

Collaboration research and licensing agreements

Share development percentage

80.00%

Receivable

3,100,000

Nonrefundable upfront payment

$ 100,000,000

Potential milestone payment

$ 1,187,500,000

Research license term

2 years

Deferred revenue

$ 35,500,000

Percentage of responsibility for development costs

20.00%

Second Collaboration And License Agreement | Johnson & Johnson Innovation, JJDC, Inc. | Common Stock

Collaboration research and licensing agreements

Total equity shares | shares

748,062

Proceeds from sale of common stock

$ 28,900,000

$ 25,000,000

Term of weighted average price of stock

30 days

Volume-weighted average per share price | $ / shares

$ 33.4197

Second Technology License Agreement | Viridian

Collaboration research and licensing agreements

Research license term

1 year

Development-based | Research and License Agreement | Astellas

Collaboration research and licensing agreements

Potential milestone payment

32,500,000

Development-based | Collaboration and License Agreement | Janssen Biotech, Inc

Collaboration research and licensing agreements

Potential milestone payment

$ 161,900,000

Development-based | Second Collaboration And License Agreement | Janssen Biotech, Inc

Collaboration research and licensing agreements

Potential milestone payment

$ 289,400,000

Regulatory-based | Research and License Agreement | Astellas

Collaboration research and licensing agreements

Potential milestone payment

57,500,000

Regulatory-based | Collaboration and License Agreement | Janssen Biotech, Inc

Collaboration research and licensing agreements

Potential milestone payment

240,600,000

Regulatory-based | Second Collaboration And License Agreement | Janssen Biotech, Inc

Collaboration research and licensing agreements

Potential milestone payment

378,100,000

Sales-based | Research and License Agreement | Astellas

Collaboration research and licensing agreements

Potential milestone payment

$ 150,000,000

Sales-based | Collaboration and License Agreement | Janssen Biotech, Inc

Collaboration research and licensing agreements

Potential milestone payment

$ 260,000,000

Sales-based | Second Collaboration And License Agreement | Janssen Biotech, Inc

Collaboration research and licensing agreements

Potential milestone payment

$ 520,000,000

Collaborative and Licensing Agr

Collaborative and Licensing Agreements - Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue recorded	$ 85,495	$ 33,965
Deferred revenue	35,500	77,800
Research collaboration
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue recorded	1,800	14,800
Milestone
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue recorded	5,000	12,500
Royalties
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue recorded	78,700	6,700
Alexion Pharmaceuticals, Inc.
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue recorded	6,100	5,300
Astellas
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue recorded	5,000
Genentech
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue recorded		200
Janssen
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue recorded	1,800	14,600
MorphoSys
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue recorded	2,300	$ 13,900
Vir
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue recorded	$ 70,300

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Reconciliation of federal statutory income tax to effective income tax
Income tax expense	$ 0	$ 0