Xencor (XNCR) 24 Feb 212020 Q4 Earnings call transcript

Company Profile

Participants

Charles Liles	Head of Investor Relations
Bassil Dahiyat	President and Chief Executive Officer
Allen Yang	Chief Medical Officer
John Kuch	Chief Financial Officer
John Desjarlais	Chief Scientific Officer
Ted Tenthoff	Piper Sandler
Mara Goldstein	Mizuho Securities
Gregory Renza	RBC Capital Markets
Alethia Young	Cantor Fitzgerald
Jonathan Chang	SVB Leerink
David Nierengarten	Wedbush Securities
Arlinda Lee	Canaccord Genuity
Kaveri Pohlman	BTIG
Etzer Darout	Guggenheim Securities
Dane Leone	Raymond James
Peter Lawson	Barclays
Zhiqiang Shu	Berenberg

Call transcript

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Fourth Quarter and Year End Xencor Conference Call. At this time all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator instructions] Please be advised that today's conference is being recorded. [Operator Instructions]. to Liles, conference and Head like speaker to Investor now Charles today, of would hand over the your Relations. I Corporate Communications ahead, go sir. Please

Charles Liles

Thank on discuss will Officer corporate results. news.; review and the partnership review today. we'll and issued press Allen joined John release Chief questions today, clinical Financial Medical outlines you, Officer we’ll Executive open your throughout at will Yang, portfolio; by topics Bassil updates The afternoon. recent Desjarlais, John Officer overview Chief www.xencor.com. our Dahiyat, will available And up release, and Today Chief the to a Scientific Kuch, Chief press call, for and be which we review plan we call is financial then and good our Officer. provide a will Earlier President

company's currently on those limited report The cause Factors and the differ remind available statements the operations, current our uncertainties known expectations Risk facts, would are recently of section statements contained make XX-K report I regarding of forward-looking begin, results us. of this we conditions, materially that future financial Form annual the plans call, market like forward-looking Xencor statements, future unknown from conference to information COVID-XX statements events and these in factors could for course and to Before these and XX-Q. impacts on that rather anticipated the beliefs may objectives on other forward-looking company's including, based factors the Form product These described operating subject programs and quarterly partnering and to filed are but most historical and based the efforts, and and the of capital future management pandemic topics. to of are on our during these offerings, the not outcome results, are on the results including future statements, management not research actual to, forward-looking requirements, development are in but by you risks,

housekeeping, shortened we confirmed yet digits. some the have general, non-proprietary five we to programs do not First that three where just renamed they names. digits, final have have were In our

For that, is over to the now XmAbXXX. XXXXX example, me pass XmAb let With Bassil. call

Bassil Dahiyat

Thanks, therapeutic build Charles, and improved on everyone. based to of engineering which cytokine our platform. combined engineering and create and take protein structures, to is antibody suite our enable approach domains of action. good It’s functions knowledge XmAb natural novel protein explore biologies, afternoon, our molecular can rapidly domains programs mechanisms the we new so on different antibody most portability targets creating our to promising XmAb Xencor's select capabilities built our protein speed and Fc of protein use to therapeutics engineering and of with we extensive and Fc us forward. The XmAb plug-and-play

for particular platform simultaneously our are trial programs We're to currently focusing in running and proof-of-concept with the are presented clinic trial This we prostate tumors XmAb a the evaluating full year. we clinical later provided Last multiple updates that to will program structures program different expect and we six therapeutic antibody most our taking which including data and Phase expansion this bispecific plans multi-arm CTLA-X on interim X cancer antibody, two use. bind Phase cancer solid PD-X, prostate also antibodies. year. such generate shots starting we the We X for and goal potentially Phase which studies guide for data bispecific I in independently on way simultaneous which advance, bispecific engineer XmAbXXX, We optimized which more or use our announced sbispecific create to activity CDX we XmAb antibodies of CDXX antigens and to and we our quarter, cytokines R&D will are advanced start a we registrational we for partner this terminate. targeting including showed we

updated bispecific Vibecotamab, a CDX antibody lower a presented where burden. x more we leukemic responded identified for AML data also in patients likely baseline disease CDXXX marker We therapy, for

expect partnered our in Fc shifting treatment XmAbXXX activate our the with clinic preclinical Genentech. to wholly-owned engineered year for and trial the the T will is will which to Now for our to front, Phase selectively of clinical disease. XmAbXXX, we It X regulatory second begin engineered this cytokine cells for be IL-XX join ILXX oncology, early autoimmune fusion

an later this file potentially of to x prostate including for are renal a expect And beginning we ENPPX CDX our we bispecific, our bispecific broad that, CDXX for behind molecule first use year. in tumor IND for solid BXXX XmAbXXX, cancer cancer. Following targeting cell development

Now platform our to options. our opportunity and also the clinical partnering expand scale strategy streams broad but provides XmAb combination therapy also drives which revenue development our

antibody which anti-PD-LX Janssen Genentech’s quarter, to starting dose prostate industry-leading cancer started agents. combination escalation access in recently clinical XmAbXXX, cancer with prostate March initiated our For collaboration with example, discovery of an their target our undisclosed for tumor monotherapy us our escalation gives Genentech last and last portfolio CDXX against after for combinations partnership atezolizumab, also

to did COVID-XX during today, to Now, I our We’ll move impacts the update before disruptions operations last COVID-XX to you we emerge. if from continue experienced quarter. significant when state we onto on not want portfolio and clinical that they

that, Officer portfolio. of Now Allen? Chief Medical I Allen review our our with Yang, clinical let updates will

Allen Yang

we presenting our clinical decisions our late start Thanks, across advance to antibody many XXXX. data happy brief and programs into data have Bassil. of leading for studies updates a new guided candidates have Q&A questions clinical be several few address Today bispecific and we’ll to the your we’ll early-stage to scheduled the in been Really provide from XXXX, session.

that encouraging safety plamotamab refractory X were data our well-tolerated non-Hodgkins was B-cell with preliminary from antitumor in are profiles durable, is sets bispecific Across And though more toxicity We indicated presented study that molecule, similar x patients at with or of than CDXXs a XXXX. and that for up relapsed data plamotamab efficacy and First ASH maximal differentiation dose have that this monotherapy. generally or will strategy and activity activity for demonstrate we combination the clinical lymphoma it’s lets Initial been competitive through advancing CDXX for selective strong, smaller some others. antibody bear malignancies. CDX believe and we patients Phase as observed class escalation efficacy which the the have patients. tolerability

bispecific and B-cell NCCN in for additionally lymphoma. itself the in These to lymphoma year. use, tumors clinical large fund. and of cytotoxic tolerable, a lymphoma So, responses. provide tafasitamab first-line refractory engineered with Other generate follicular already studies the November, combination Incyte study and investigate start Plamotamab’s diffused and is tafasitamab entered CDXX-directed chemotherapy to it’s triple which plamotamab diffused lenalidomide Fc MorphoSys approved and large past with relapsed free durable pathways we distinct mechanism of B-cell listing. a include tafasitamab easy this MorphoSys It’s we and the to or received antibodies XmAb powerful and lymphoma. and CDXX-directed first immune Incyte agent to a will subsequently antibody and will that patients studies, can first CDX second-line redirects the B-cell tafasitamab and and with diffused triple is MorphoSys or as we combined XXXX. two domain prolonged T-cells combination licensed in action with large refractory for relapsed will We planned our sponsor this anticipate collaboration

CRPC. for or certain agents patients resistant November, data response study and CTLA-X. of combination Next a the a study a and as the cancer In lung and that In partial subtypes of subtype T-cells with initiate Xb year. we molecular year, our as solid depending checkpoints advanced prostate was XXX interim across cell on activator first of in from patient tolerated prostate a or non-small monotherapy half responses Phase is with XmAbXXX and need. express types plan represent is resistant these as a to last most microenvironment for also data This and SITC selective cancer observed multiple PDX this renal of XmAbXXX X castrate presenting X tumor as year, types was cohorts but data cut-off, from complete an expansion data updated to unmet we renal patients medical a the we example. have well we continued including more in with multiple melanoma look castrate the Phase was observed in dual a mature mechanism basket cancer, carcinoma, cancer SITC, generally ovarian of its tumors targeting ongoing cell at forward of were cohorts to in prostate September the melanoma, Phase and high tumor patients advanced early XXXX presented other rather cell and

patients neuroendocrine evaluate we its of type survival study we following for identified dose we consistent progression-free population. on, study in data receptor initial was and early of proposed that and have clinical tumors, Moving mechanism of NETs biomarker analysis somatostatin tidutamab data, antibody this the ongoing patients know dose utility the well-tolerated patient a are X generally in and CDX are the the From that at or escalation the tumor these to tidutamab slow-growing discussed action. from with expansion NETs. with Phase bispecific previously are targets tidutamab,

we to are the in types study would tumors. a anticipate cell new this to to for somatostatin small population cell much in stages patient merkel time neuroendocrine a patients immunotherapy initiating now are carcinoma and responsive we be potentially tumor final tidutamab activity and which So clinical cancer, demonstrate in known with of clinical shorter lung compared to expressing

XXXX. patient We expect first in to dose early the

program of be efficacy to updated we’ll that brief to with is this in burden. of lower in AMG some responses year And appear biomarker closer we study formerly study’s later associated Finally, where last you and the at presented on update XmAbXXa to being known the on ASH a year December disease the baseline vibecotamab was updates initiation. for Amgen’s and programs, analysis new indication AML, start which other two data as planned indicated XXX

our additional the studies. and dose We study partner and planning to with Bassil? are we Novartis continue reviewing escalation data

Bassil Dahiyat

Thanks, Allen.

that into that the used reduced is to has grow has bias also be clinic autoimmune our oncology. It heterodimeric improve XmAbXXX engineered we always activating looking T-cells to ILXX key towards domain our of are this also that’s programs next duration with potency new that our have regulatory for Xtend to an life. the diseases. tolerability longer designed our cytokine That’s to We is XmAbXXX. XmAb to ILX could Fc promising are to and treat this a mechanism Those pipeline and a and technology elements and half for normally in action toxic entry

to cells. immune T-cells other addition healthy changes levels in and and We dose shortly regulatory start tolerability, volunteers escalation study to in in expect of

providing cell renal carcinoma XmAbXXX, is is we year. file designed agent XXX to this is recruit bispecific target’s The has domains bispecifics. cells the for to the on our tumor expect binding range density T-cell bispecific the one which to Following normal and ENPPX and IND uses of selectivity a of which antigen target the CDX plus on the It extends and high expression to lower two two to selective two tumor cells. against the plus density ENPPX compared more format, format cytotoxic binding to against CDX binding amenable

AMGXXX this prostate partner program format. our example, For uses cancer in

during onto our development course. sales to XmAb the XmAb part approved from These to we’ll no as of impacts, advancement of royalties as of fourth potential business continue revenue clinical internal Now, a products. impacts partners. partnerships, with monitor payments There COVID-XX core of but portfolio of partnering were technologies, from the quarter the partnerships well candidates, licensing the complementary generate is

$XX.X marketing for in earned of has for be second diffused quarter, in which the Our XX many authorization MorphoSys’ and in are there partnerships in two guided rare now million fourth created. the royalties half Last Ultomiris marketed should the B-cell based resulted payment. a we’ve to-date, on highlight for ongoing nature of $XX patients milestone plug-and-play Monjuvi’s the application Fc year, the large of disorders first treatment Alexion’s and XmAb domains partnerships technology Currently, really with for XXXX. lymphoma. sales Ultomiris Monjuvi European blood MorphoSys second-line the million as XmAb products decision suite we

several to to quarter expand our spanning pipeline, entered new of programs, the also we We or partnerships the use different our to last XmAb enhance approaches our extend use development technology. clinical

option directed $XX an the to received in tumor a and in milestones cancer collaboration this enhance the both Targeted royalties we therapy of right and is First, with combination discover drug have an This antibody development to agents where excitement tumor-specific potential around way action. can target. for bispecific of new announced each against CDXX we stimulations T-cells access this bispecific agents. addition Janssen to with CDXX both boost potentially antibodies. others’ A own prostate it mechanism in partnership, U.S. prostate trials upfront of checkpoint to the the the CDXX highlights the million part agreement parties that co-promote inhibitor their a activity and key

that cancer we need. getting Center our work very So will reaches with MD for in Over Also discovery development We portfolio XmAb in expanding and targets five leading MD investigators us in novel antibodies XmAb an trials to in expanded technology. and prostate Anderson with studies with MD in area novel combined plug-and-play castration will insights access resistant entire relationship December Anderson expanding drug combinations new candidates. insights development help high additional candidates across additional oncology unmet work prostate clinical this in in close collaboration with biological clinical with Cancer our bispecific the generate to portfolio. a accelerate cancer, year term, start development our our and indications, to with drug of include Anderson’s clinical execute timelines Janssen’s our

to create new a have generation and an of hope exclusive develop We candidates, antibodies. to bispecific targets these novel access to XmAb option

milestones license potential to IGFXR, platform our the a of announced Finally, apply in pursuing in technology stock with therapeutic technologies license for of Fc value that and now exchange ease December agreements Xtend are million areas agreement that we common targeting Radiant entered to in extend internally. for antibodies $X future an royalties. we We

company worldwide for a the development to for interest the company received held disease. rights agreement with in new programs preclinical domains We We royalties. privately also eligible equity a incorporating license XmAb three develop given Fc a into entered autoimmune and in are XX%

hand John? Now with Chief financials. yearend our will call over highlights our from to review the who John Financial I’ll key that, Kuch XXXX Officer

John Kuch

Thank you, Bassil.

technologies. growing arrangements upfront flow, equivalents, During This offset partnerships, continue $XXX early-stage $XXX helps a securities collaborations year payments clinical portfolio of licensing investment and marketable with primarily cash million cytokine million candidate with in is cash cash, XXXX ended to We year, and XXXX, Xencor’s our milestone $XXX.X to to of candidates. the strong the antibody our Genentech Total earned milestones received. our XX, technologies and generate and $XXX.X and Astellas payments, XXXX totaling that’s drug drug in several sales were million collaborations. million. to with Total to royalties sales-based XXXX to from and XXXX the were cash same MorphoSys to XXXX cash related period current revenue compared expect will ended and Ultomiris which plans, candidates, into and XXXX. primarily development bispecific a estimate December and million XXXX cash increase million, earned for million, to compared development between million expenses million with operating we compared basis of research year on XXXX, and for in for and and $XXX.X the fund XXXX licenses $XXX ending approval Alexion royalties on in Revenues to end Monjuvi, and have and XmAb and a and included and increased research from Based we on the in spending revenues attributable equivalents. $XXX.X programs royalties compared milestone $XXX.X operations related to $XXX in GAAP and

revenue in to $X.XX XXXX. spending year stock-based the fully and on increased million, that, $XX.X was for reported was $XX.X were and XmAbXXX loss development compared staffing, the basis additional for a diluted per to questions. administrative and to reported fully is Net share income lower $XX.X plamotamab compared compared million primarily and expense million million ILX reported up XXXX due the compensation loss $XX.X professional $XX.X to $XX.X The XmAbXXX. or primarily $X.XX expenses call net studies With for program intellectual Operator? to General XXXX. reported net property. increase million we’d for on expenses XXXX on and milestone Specifically, year, the or open of expenses, now and programs a share to on in attributable your collaboration for net XXXX and higher our XXXX year is licensing and our and the higher research for for like Non-cash million diluted basis to income compared for in XXXX. revenue for

Operator

Ted with first [Operator question Sandler. Instructions] Our comes Tenthoff Piper from

question. You may proceed with your

Ted Tenthoff

might Great. AACR I excited a a Thank it’s with what very little really think and in progress everything I this wanted am and there? showing updates. be of you company. you do much and year ASCO, might be the be Thanks. do update you clinical at at I on early think all you about just at what get specific sense the know going showing respect be bit at will But to the calling that to you XXX conferences to

Bassil Dahiyat

is take I’ll that Ted. Bassil. one. This Hi,

what of to AACR, is we I both oncology in platforms, use published. as to try So, expand conferences be progress our course various are for preclinical can’t our as abstract going to we highlight mean, programs. until well as disclose continue presenting We we to the clinical always

it be there of quite the early, quite immature are in which at other out and guided specific – have of cohorts present the clear that should the We’ll data we as the and that to indications the on granular XmAbXXX cohort SITC would and really are cohort we cohort last PDX cell approved. get for carcinoma this particular from round expansion where year. that prostate information data as more to weren’t is going no we’ll well mature be were cancer renal be timing basket to November get those the kind We is then – closer to as have

well to much will on trial starting will our cancer that be as that be full other guide trials. also more able specifically this be year, prostate as it So, We’ll dataset.

Ted Tenthoff

guys. Okay. . Great. Thanks

Bassil Dahiyat

Thanks, Ted.

Operator

you. Thank

Goldstein from comes Mizuho. with Mara question next Our

may with You questions. proceed your

Mara Goldstein

Thanks. Yes.

So, release us the in company just more perspective? that relates is? just in on molecular study, can how the on And just about conceptually, and the give strategy maybe to some as private demographics from am in be terms you what granularity sort to and of a a I looks press And little kind the of populations? and CRPC curious details in that that subtypes like that more bit that just then, disclose of just to patients BD was you’ll transaction position when what

Bassil Dahiyat

of a I’ll the That’s to company, on clinically but an first. to really molecules a to next autoimmune particular one Then over we advantage. were that we the Fc granularity. subtypes mode try in second a molecular currently makes can different this move company It’s different technologies very They never BD for pursuing. of really working the the all to on just private start ago up a and years that plans of perspective, And to all number use we’ve molecules, sense these developed we to take company to characterized I’ll made fairly – Allen, announce that me one. easy years, be clinically touch gain are happen From suite stealth Maybe when in them. steps. let were had They part hard more and disease. the our

leadership things taking to see that. by moving. focus, want value to think equity in non-core It’s antibodies on help like these And that we the get our again is from see team a a on core them And so we’ve way bispecific company great assets, and where we assets. we oncology, licensing to going on that cytokines on aren’t about

to for it’s assets again, our non-core it’s hopefully the standpoint and value So, value a how use depth create of to and technology patients. from strategy BD about

is going coming small say but hopefully is want of all are the cautious. variety molecules into into and running But maybe chemos. be we and able Allen trial we’ll to that on be there in I’ll the we’ll the there talking places to the the Now either lead be or be about that details, where setting a months, to until we certain up great and subtypes, is CRPC get just molecular without

fields we you Allen, defer are do on the certain? specifics about our and So, we of that talents what where comment know want to

Allen Yang

Yes, Bassil.

we in giving about general. about think details just cancer I cancer very of excited we’ve I in early data established, are XXX first can’t that design all, and talk without trial prostate of the the prostate

And look after really at molecular a breaking remember, saw So Xb. you is it’s clinical this prostate down activity, Phase cancer general, we when in by subtypes.

XXX be or be can monotherapy it as will So, given given as therapy. either a a – combination

now terms are of And so, subgroups proof prostate In people PARP aggressive might about MSI is like more forms of inhibitor cancer or other treated already aggressively want homologous more checkpoint chemotherapy. monotherapy. that are there as deficient recombination you inhibitor in combo if with and think inhibitors, be for approved. And checkpoint what the think other chemotherapy PARP with there inhibitors then are to prostate may using high, that about you a cancer

much So, later we it. on without the design, the are thinking about disclose how that’s year, in trial saying we’ll which sort of

Mara Goldstein

milestone Okay. for actually for and payment. additional about think sales-based Ultomiris ask could XXXX? royalty, just we one And it’s I payments rather question Should the John sales-based if and about

John Kuch

on We remaining sales-based predicting with better have do But $XX milestones the sales in don’t those. model is agreement. on know. the ours as million than you your guide probably We

Mara Goldstein

you. Thank Okay.

Bassil Dahiyat

Mara. Thanks,

Operator

Thank you.

Capital Gregory with Our next Renza from question RBC Markets. comes

with proceed question. may You your

Gregory Renza

team, opportunities great you going curious on understanding a these Thank advance look deal five the certainly years, derisk? looked potentially in and suite sort programs received of you. just and progress. all advancing, going the programs them to step am congrats risk profile so thank of like Hey, certainly you question forward that to on current and a the Bassil as going taking of we opportunities. of a much as how lot could back, Xencor really management of three translate would so what a lot and I much actually and maybe you. to Thank on is, and a just Bassil, say

Bassil Dahiyat

Yes.

example, they differing that The we strategy that’s for have strategy, a rich and scientific hypothesis put as now data a to is to outlicense outlicensed Nestle. where then So, letting the it that pursue some the or it different terminate find and guides programs clinic make that us, We the for Thanks did about make sense anymore. we IgE have XmAbXXXX that where data to us reducing question sense asking. antibody patients. us guide into with can for really business the our molecules deal strategy. we And could good will didn’t to help trying our Aimmune

it’s the and about We either resulting us depends have and the and driving so, it. those on pipeline next data it letting data on plamotamab a from of a development even And data or programs decisions. it drive maybe the cessationed continue step clarity now outlicensing forward an for gives data them XmAbXXX and or we a hope on behind all having rich to

we development. of feel any stages don’t tied program one So the at to early

earlier and more ruthless into potentially and and and maintaining But by think registrational ourselves we well base, we to Always trial programs our start will more how those if mature moving resources However, change ultimately move and sure as clinical that all apply being assets to goes stages, stages, to will in early but is really company that. goes clinic on all through I starting if calling we’ll a to pretty commit approval the rich into to profile about pull the program we market focused getting see well. filters mid with that later as Plamo, we start are we make us stringent the that goes.

always early it clinical hope of even will will later just So, start base really a or piece that solidifies. and remain becoming data puzzle our program we emerge the think program I as programs our only stage the

Gregory Renza

that. That’s for appreciate I great. Thank color. the much so you

Operator

Thank you.

with Our next Young from Alethia comes question Cantor.

question. your with proceed may You

Alethia Young

all for the Congrats guys. Hey taking Thanks on my questions. progress.

to to and others promise kind a kind potential how be the back that’d volatility as going if are program relates timelines we’ve of that program. And talk question CTLA-X with wanting about phase ILXX of some there of a you Roche a the is any of to have in broad I just Just, get COVID my collaboration of seen. the step update is target it of the bit second take picture in of little this kind and light PD-X just, want Thanks. that enrollment know I some great.

Bassil Dahiyat

sorry. was were am timelines? you asking program I Which about that

Alethia Young

CTLA-X PD-X.

Bassil Dahiyat

Got you.

the the XX:XX collaboration first differentiates touch collaboration one, our with can and with split. John Roche P&L so but philosophy we hope on use comment a on the Roche Okay, that you for is I’ll we us, design maybe,

are development We on We share information now, we’ve to plan come can’t combo X escalation are in with right We the out. executing can’t escalation that the making Phase working last are advanced profits. clinical and hopefully a decision sharing just cost monotherapy quarter. a and they get in to from clinic disclose atezolizumab Genentech but until we escalation data on publication really agreed a when with we which would study say

steps as talk will it of studies announce you fit to emerge, engage we new we study, John, plan of the those in sense. about But we Maybe, as I think for as want makes space. existing or we can’t. can publication we different new as that this how in say data course

John Desjarlais

terms out ILXX PK Yes, the an molecule observations that ALT-XXX an there, on XmAbXXX with in most well that been we that is we stable the There that’s as earlier using that’s molecule – infusion. longest – then released heterodimeric mean, had the started I probably of is our Fc and IL-XX an molecule with with molecule ILXX Pegylated the Fc based to stage so just potency also molecule. the and the is Fc the from And IL-XX of kind – Nectar that XXX, also it key as work like Pegylated reducing acts basically the action, in these way kind the the of thing understanding terms we receptors. of of molecules of is did an results compare ILX same actually their that distinction we mechanism the to of infusion dramatically Nectar which because acts a

the type interact wall took when the took – these being things receptors through potency with they idea ILXX them. we orders down the cleared Fc couple So fusion get a magnitude, that the of

we reduction, depot we found And got so, longer, got is molecule for because we better pharmacodynamics. molecule with potency actually half what actually life the of lasted that pre-clinically dramatically and the better that

a of higher peak. T-cell monkeys, longer So we and duration a that as got well in as peak peripheral expansion NK of cynomolgus

And so, kind pretty we humans. to for hope and of think well properties we those up well everything that into translate set

Bassil Dahiyat

Great.

So, me to next want do you take? question,

Alethia Young

sorry. that. completely am I I Oh, forgot

Bassil Dahiyat

The enrollment COVID question PD. I on about apologize. and

ahead, Allen. Go Sorry.

Allen Yang

No Yes. problem.

or CTLA-X in terms enrollment. haven’t or decline So, the in of any our sort noticed really PD-X of we delays XXX,

been the systems. COVID pandemic First the supply the virtual all interrupted adapted remote They’ve teams working things like hospital chains, has of overdrive the I’d teams, teams But and at Xencor. all, to and like quickly thank really monitoring. to during hospital

there think unmet is large here. factors need. I so, Cancer two is And a

have cancer, you also despite which the need active molecule, you we is have very to important. treated, If pandemic, an be

we are so, enrolling schedule. that the our well to And and noticed studies

So that we delays in noticed program. haven’t any

Bassil Dahiyat

Thanks, Allen.

Alethia Young

Thanks.

Operator

Thank you.

Chang comes from Our question next Jonathan SVB with Leerink.

You may question. proceed with your

Jonathan Chang

questions. taking for my Thanks Hi.

BX-HX, and First your does question CDXX in approaches development? other in programs approach on to BX-HX program how compared

Bassil Dahiyat

prostate CDX. and from Sure. T-cells expressed bright is this maybe in resistant guess, tumors to that’s a on I answer to particularly like mean, activation – use a I things way many can as generally, places checkpoint or is therapies hope or the BX-HX like I overcome here marker to

targeted bringing cytotoxic So, avoid it’s side-effects. way it’s and tumor-specific and not to payload payload that stimulatory the of assure doing hopefully some bringing can a effect

maybe I on think and center its about John, in the immune system comment really CDXX can the out attractiveness you that. is of

John Desjarlais

are, activated need way multiple they signals. T-cells the are so, that Yes,

that signal T-cell across signal In through see is artificially one, CDXX this X. interaction the through X. bispecific T-cell COVID-XX-X the molecule. signal a with the with engager are or triggering case, we may Right, So, gets it – receptor

CDX If X you on expand couple T-cells. signal in you expand CDX signal and and beads with and T-cells X want to vitro,

the at the make specifically since are we just interaction So micro lot that that trying cell happen environment, BX-HX interface. that of a in And are to trying brightly tumor X to promote and we at is interface. tumor signal right at tumors, triggering that T-cell expressed different a

doesn’t philosophy actually encompass X there, along our programs at contrast Now, by that, CDXX the this show It the about itself. nice can in other a this least anything. bispecific, are signal all is thing is and we out that

from tumor safe Lockheed are are data a – perspective that to so, then promote be PD-X T-cell signal like to BX-HX or And believe getting through broadly safety with expressed the sensitive receptor. bispecific that you we and going broadly a the couple CDX should we that X either targeting

Jonathan Chang

Thank a you. just we additional it. question, when data? see plamotamab final could clinical Got And

Bassil Dahiyat

expect data a after setting that’s later and regimen it right We hopefully hope – to we this at are are have more we plamotamab up should and that. have complete dose at medical year wrapping the a conference we

Jonathan Chang

you. Thank it. Got

Operator

Thank you.

Nierengarten Our next with from question comes Wedbush. David

question. may proceed with You your

David Nierengarten

Hey.

updated that is plamotamab the who data Thanks. on a studies as And for comparing couple the you follow-up quick other data bispecifics on on MorphoSys. that’s and success that – then, here plan data monotherapy studies of under CDXX combo clinical of? a CDX Incyte for recording a on control bar in it what across development? clinical presented thinking or then, that questions you Do are Just and the are with to

Bassil Dahiyat

combination back The committed regimens the data for CDX when in have how think len, – to and we large for control not other two it it’s I that and we DLBCL, remained is great the play monotherapy active it’s studies the ORR MorphoSys, tafasitamab likely to company, of from PFS on partnerships be some our the data, other we’ve a collaborative and Allen to data and Incyte each of will we the is together, plus update hold and and We like interpretable. you comment presenting maybe refractory plamo CDXX success bar highly a coming off had. can that here? meaningful relapsed there studies don’t partnership, is with the element a but this obviously, so Yes,

Allen Yang

Yes.

answer me couple questions. and up a So, let back

CDXX, going we lenalidomide these the slightly probably as are molecules here. is actually going how is, different It are together They we not and disclose actions. put to I well. study CDXX. design, to will think agents about think The the the three way mechanism likely synergize the you So, of have the but there synergizes

that’s about so, one to way And think it.

and other and toxicity for CRS the T-cell some about The engagers profiles, to really bispecific neuropathy it’s think the lenalidomide mainly thing maybe milo is for suppression.

in could to are have minimize going we of that increase terms in something efficacy is And to large the it of reference milestones, sort them population. and you so, toxicity way And been we about. – together that’s thinking actively Is a sort and put is this second-line therapies, dependent or I lymphoma? think the third-line and our single disease two other of monotherapy diffused B-cell benchmark, on it it’s then or Is highly after agent.

chemo you after clear data companies have think of moving think their how good they and durable really not that I what combination, monotherapy everybody different it’s their monotherapy think and is is of combinations why is our I I because data that’s ASH it’s like combinations. sort quickly are response and from after sort rates, seeing are novel to And declared I free. are

David Nierengarten

Got you. it. Thank

Operator

you. Thank

with comes Canaccord. Lee question next from Our Arlinda

with may You your proceed question.

If unmute. is mute, please line on your

Arlinda Lee

Hi the guys. Congrats progress. on

I are you some still you IL going those – questions on that have have of could data provide still other your XXX are think an some XXX. and to and I whether on if those think you combinations on do Thanks. update

Bassil Dahiyat

Yes.

XmAbXXX talking the and about are dose after bispecific. are programs on – three started bispecific They – activation you about our tumor both the escalation in BILAG escalation. ICOS XXX. respectively, microenvironment CTLA-X year in a dose XmAbXXX So, Those PD-X

a bit behind. there So, little is

data announce a escalations are We to when dose package. completely have expecting

XX trials We out haven’t at months those that. years are and two it the on from XXX was guided from of point will yet the that about start to or XX about we data starting. trial I

to to new commuting able So, I starting guide on specific data without think from the we when those. we’ll data, are approach be to

Allen Yang

Or data period those. from

Bassil Dahiyat

Yes.

Arlinda Lee

Okay. Great. Thank you.

Operator

Thank you.

BTIG. question next comes Tom from with Our Shrader

proceed with question. may your You

Kaveri Pohlman

your the thoughts data for My enhanced own year, factor that plan question Kaveri with for are CTLA-X. the drug? Fc clinic antibodies? for you Pohlman role domain our And the this Thanks develop this Fc taking in share enhanced question. other Fc Fc to include on is is There Tom. Can of molecules. molecules active your first do Hi you for approaches this for expected

Bassil Dahiyat

for any we anti an enhanced don’t have developing I’ll plans Fc that say CTLA-X antibody.

it’s In also to receptor hitting There on as selectivity other our to checkpoint. LAG X no Fc fact, both there receptor and us our CTLA-X drive give binding LAGX another drive molecule, whether PD-X our PD-X and have further filings. co-target, is they our CTLA-X or activity function well one, by the rely as

at look miss approach did from So, yes, function cytotoxicity. other interested of dual I I data mean, having we use comes other will to for clustering kinds go think out or that I programs I there, be we that different and drives checkpoint trying enhanced from and down anything John, to pathways are there? think receptor excited by a

John Desjarlais

TREG are Yes, would are that just of anti emphasize through mouse CTLA-X. for mostly built built significant bright enhanced data, a I – the for approaches CTLA-X Fc depletion, TREGs where largely off MOA

As is the for in biomarker it ipilimumab based humans. clinical with depleted data actually current that not on TREGs consensus is

And on want this our with to of so, molecule, and and approach prefer the depletion. ability promote we course, to arm wouldn’t do of effect a no PD-X silent function having anyway you binding

Kaveri Pohlman

you get deal Do it. think one, you And to brings Phase that novel? the X it. targets? need biology extensive Got is industry, help MD programs to in so targets Anderson does trials? for Got so, just the you last does search the a the move tumor-specific what Also, to deeper

Allen Yang

structure. is can deal I’ll scientists. with then, on MD Anderson he chime in working John answer about why on excited the And

On pay of costs their for all the they the and partnership, their costs. all of deal discovery pre-clinical structure, for discovery

our the We if have molecules. technology and necessary an to agreed exclusive option to XmAb we’ve technology, take rights and contribute program assist making them our to

be imagine would clinical typical of we We over the development. for pre-clinical data. would would efficient it take exciting kind deal So,

Anderson think a would development that natural to collaborator I So want consider for that probably clinical be the MD folks. you

Bassil Dahiyat

the so data exciting, why so is exciting. is John – on their Maybe, there

John Desjarlais

have set is the MD institutes world. cancer every best to there. is, MD research have with in Yes, prioritize and university for Anderson love I’d because Anderson out the different I major there we in guess, of of we one up a so it it’s put lot the because way ideas to or at relationships the But like top country,

a start. really And so, it’s to great place

to point also definite hoping you And a and clinical from exactly get MD targets. lot fresh are of our are with eager They’ve new downstream. said, up – We relationship We’ve discovery it’s that’s them. announced keyed further I’ll got for ideas sort we of ongoing Anderson find very collaboration like a out, efforts a same reason. – to for – Atreca the at novel

Kaveri Pohlman

progress. and Great. on congrats Thank you the

Operator

you. Thank

question next Etzer with Darout comes Our from Guggenheim Securities.

your with question. proceed may You

Etzer Darout

do question first the help it’s guidance a one could that then breadth emerging a plamotamab enhancing if XXXX. tumor If up with and can taking adequately. a the And strategy that cell XXXX? it’s et and question, my and sort other end of the question cash masking little about where from in you bit of technology activity? for that progress are R&D step the second Great. plus XXXX Interesting you those? with a forward. programs of like But could maybe wondered, planned just you. so activity technologies predominantly assume maybe the until what’s for talk you move baked questions on a we congrats data far conditional that Thanks cetera in the all in activation, see one versus two said guess, I guess, positioned Thank

Bassil Dahiyat

I’ll touch the on Yes, maybe second question.

to what’s spending. drive driving increases Your around as indications, going and progresses. the as go also trial just XmAbXXX trial, development start prostate the XmAbXXX It’s in studies we next in increased our of to Genentech with into It’s move own its program plamotamab, with that and probably well programs additional not be spending for spending as guidance. cancer ILXX additional standing as increased cash collaboration absolutely on as the stage which you seen question XXXX you in are other

spend these using more very and of and kind R&D the plus getting program that And entities is is driver I spend of of think relative those antibody driver big program target growth. – engineering. absolutely primary would new other to one, sort where this cost to the for to R&D are avidity positioned say, two property different on approaches proven the antibody of technology the activity. well that a selective phenomenon of binding kind in I get does

they think and and I to in approaches, have to in novel there of while exciting have going yet extremely it’s and that the these potential, Going be back out. vivo a bear herceptin to in selectivity practice lot I designs the is of out think the really play real days to erbitux going

are those. we So, excited watch very to

do think approach minded. that there open very ones. plus make? format just tricks is the stable selectivity, not advantages has touch do by want to mean, that’s way We to I you the one other easy different We John, the are straightforward avidity though and and the very on with two you of certainly but can

John Desjarlais

end to approaches, activation I always killing bit selectivity, of like like felt I of various to Hope mean, in I as day, feel some in the original like releases feel fingers are in that going I that, all as little Yes, I back confidently to that, yes, the do not data data is tuning information approach there more out of that’s certainly feel with your the I’ve from are and can periphery, avidity more, human reagent think, toxicity but than say lot together the other and like phase translate is lines. certain from other assays well. tumors based. after translate you in the vitro of tumor terms pieces only like, about that, question, at translate I therapeutic terms would well what conditional – cell bright information I well binding plays crossing confidence there are that – index. dim, versus in there hoping the like selectivity with get that into I IIC

Etzer Darout

Got all it. on thanks again And Thank congrats progress. and you. the

Operator

Thank you.

from with Raymond Leone James. question next Our comes Dane

You question. may proceed your with

Dane Leone

updates. the guys. on Thanks And Hi. congratulations

global? program for ILXX that only? is Can the Genentech, is is XX:XX to back. clarify, So, for that U.S. want split just Or P&L with the me, you I go that

Bassil Dahiyat

global. That’s

Dane Leone

Okay.

So, that global. is

the Then, are – Ultomiris on get you Okay. remind lagged that of how can us and royalties, Monjuvi paid on out? you terms in – is those

Bassil Dahiyat

take, I to Kuch? want mean, you John do John,

John Kuch

they as sales. royalties the record record We

of unless the both pick book we post up. estimate are to so us, to for royalties it’s our easy So, it to of what – have real sales ahead

estimate of case sales pick it the earnings with release. Monjuvi, of have off purposes we Incyte for to this For up we are the

Dane Leone

Okay.

John Kuch

question? your answers that Did

Dane Leone

Yes.

real-time. it’s basically, So,

product it’s basis. on So not

Okay.

the ramp. I think we blended figure the coming to rates royalty where of out are and kind as all sales just trying are

Okay.

bounced for what’s asset the monotherapy on more updates going In forward point planning hoping the monotherapy mature focused out are study What setting are for I minute the data, update? as be. it are I – informative? of more a the going within you mean, going the taking out? year, on to what that to cheese plamotamab going of the to this the you the you focus from at Monjuvi? guess, going be terms are around of be this back Or that’s to kind subject on from to this And to be a on the this dataset with monotherapy combination what

Bassil Dahiyat

Yes.

and these up what picture from it So, expect a about can the dose data escalation we and efficacy wrap just and wrapped and finished learn and small really and update would regimen X But escalation to Phase really datasets. tolerability the of be give it’s clear to up just you you efficacy rolling going because to combinations day study lymphoma that our the we most the that’s think and tafasitamab of regimens where have combination what’s in that’s win be and of the strategy, with to fully ultimately. the lenalidomide the with have are do going focus

other really from and also DLBCL, of could we’ll monotherapy patients even in – you and accrue look We while in combo cohorts this tafa in could going and are development go along continue or start. advance number plan and continue follicular indications potentially that promising data can DLBCL that cohorts its with a and be, the that bucket can the later multiple amazing development X would and and expansion looks in lymphoma to development have and of – We go data accrue to with dataset monotherapy and own We’ll Phase others. the registration continue track to we patients go expansion into a Len we looks if data at also lot exciting. like

Dane Leone

what cancer large prostate dose CTLA-X just this I the In is group for in general… that? expansion what sense. cohort how was, of makes That a Okay. the – PD-X, group can’t remember

Bassil Dahiyat

Phase the This prostate. is expansion in patients X in XX separate, cohort

Dane Leone

Yes.

at generally what For at disposition were like of the generally currently? was those what you where then patients was So, – baseline?

Bassil Dahiyat

cancers? prostate For

Dane Leone

That be highly would appreciated. Yes.

Bassil Dahiyat

go Yes, and yes, ahead. –

Allen Yang

to Yes, didn’t of cohort. care cancer and they them were castrate select so, resistant chemotherapies. standard so, have in exhaust we for molecular prostate of seen subtypes the certain and so, have expansion most They

naïve this So was chemo really group. not a

a And treat. group so, they were difficult to

Dane Leone

Okay.

unmet theme like do so, around comments And be the sorry, need of guess. landscape clarify prostate, that in? you to PSMA I where new is one therapies certain would in the coming just your think

Bassil Dahiyat

would are still. resistant in cancer say unmet unmet a need they after yet. that is a fail I not is salvage there need post-chemo prostate Well, in castration big big in Right,

Dane Leone

Okay.

to So, you not thinking specifically more subtype or… it a about are broadly

Bassil Dahiyat

Not unless the data guides us.

Dane Leone

Okay.

what just… understand talking Sorry, what subtypes like that earlier, in was you just, about on are of mind something I was was focus trying the to you already kind whether that to or have whether

Bassil Dahiyat

if Oh it’s is no, there signals now, we are other great, right. we that signals emerge or are if ones multiple particular going explore across Right any a to that’s which to subtypes see agnostic. – one

Dane Leone

Okay.

cohort cohort testing. of at XX that… that So expansion basically, are Does this have then you to you going entirety for molecular patients mix and

Bassil Dahiyat

That sorry. am were I we unclear.

this So patients, that’s we cohort mixed. XX have of expansion

prostate of parallel multiple that whole It’s cancer different report other set just data. trial cohorts Also, to are start going completely this patients. of going subtypes. are we in patients year, We a a to molecular new with

Dane Leone

All Okay. right. you. Thank

Forgive me that one. with

Bassil Dahiyat

Dane. worries, No

Dane Leone

asking Thanks. guys. from stop I’ll you

Bassil Dahiyat

care. Take

Operator

you. Thank

Barclays. Our Peter next Lawson question comes from with

You your may question. with proceed

Peter Lawson

question. Hey, thanks for taking the

a cetera. Dane’s subtype that HRD for, of like like levels just on like through et guess, of is kind kind I post-chemo, PD-X indications you levels kind some a of of is just bracka across question kind or it scores, that are is thinking kind molecular looking PSA are So you that around of follow-up or scores, and

Bassil Dahiyat

mean, the enough, I again, having go I out be coming soon suppose. disclose I details Well, Allen. without think, think, ahead, I will which

Allen Yang

the forward, across chemotherapy, people We because a way are disease could be The an would patients is think arms. and got resistant comers subtyping unselected many that standard is, of all care. prostate the to value and sorry treated most prostate expansion Peter, where of of for were sort could because molecularly generate and an and and all that, have the this, about and best castrate cancer in cohort like the that’s that, maybe challenge cancer them – for of Yes, the effective confusion. was as we is where question could moving we it be where that

you metastatic logistics door cancer clinical anybody qualify a with for that’s that standpoint, that walk through from trial to a the could would want prostate So, have who study.

So prostate castrate cancer. resistant

So, have they want come arm through the door and we a would to basket. an or

a baskets inhibitor. PARP some like would they normally Now, recombinant of get the deficiency,

each you basket need comes you want may everybody to the a that and So somehow then you biomarkers ones other monotherapy of want the include have other through then those that be like would that understanding door some and eventually, chemotherapy an a of have and disease MSI of would have just just more exclude and and activity high patients may molecularly. to some little aggressive XXX patients

the narrowing are indications point. really not this at we So,

sort are the combination all with We molecular appropriate studying of the the on based if subtype. indications needed

before. wasn’t Sorry, I clear

Peter Lawson

that to That’s if just I emerging just seems And thinking the kind selling around, idea through? is much. kind an be trend I No. you in in so thing a of know are new company, that Thank about And nothing. royalties. don’t equity a investment space. the you question you just increasing is of stealth the it can, potentially guess, then,

Bassil Dahiyat

Yes.

as piece, we think them don’t cases. as of example new technology licensing for our get of equity preclinical we of think the of for in on companies, licensing asset lieu public payments investments, or these private companies, stock even upfront of in in we So, or it these cash

to lieu in wholly in when value equity company we has the we and So, based cash in conserve or technology wants part an could of grow we it’s when licensing, payments. really on entity promised maybe are upfront based think the its and piece the like

just it’s of having. really element changing a So we deal are one

can the have deals get into the into our just technology all it and And we built of. also. We hands of of milestones that broadens those pool royalties people in those

royalties, like our options the of say value are that We on always specific. anything within Now, the we royalties, selling considerations. so how we real financial to have of the in kinds are really programs things assessing their of we many are those the assets can’t different assets – not and different maximize

Peter Lawson

questions. Okay. Perfect. the Thanks for taking

Bassil Dahiyat

you. Thank

Operator

you. Thank

Zhiqiang from Our Shu next with comes Berenberg. question

with your question. may proceed You

Zhiqiang Shu

on you. questions. for afternoon is Good Thank my taking first plamotamab. My everyone. Thanks question

beat thoughts to And first-line this I why for MorphoSys your venue The is of do for guess, guess, other to data run in do just you hear hear frontline clinical that data year, our on ILX And study, any autoimmune for even combination guess, I Thank some why there, present biomarker molecule I you frontline you program the is your think ILX. why some to the know do or want better potential diseases that thoughts is own out frontline you. there? running DLBCL? think year? you of a study, see to this your their you your DLBCL second then, I study? and can want And top own question I potentially Incyte the want XXX than

Bassil Dahiyat

concerns, now the to toxicity is on chemotherapy-free a these is combine with with concerns. other R-CHOP, frontline how of as from So, opportunity compelling drive removing lymphoma DLBCL, to opposed the long-term that the toxicity in opportunity interest agents think completely create we the CDX regimen agents and therapy, really think we that, chemo and very unknown because using CDXX,

driver containing chemo So we shot of R-CHOP. strategic the is regimen. than regimen why has activity worth R-CHOP chemo-free with is to a high compete it think better potentially having that just that And very

with we to immune what aside with be lenalidomide, I will And CDXX. CDXX we tafasitamab with very synergies happens going the – chemo-free, have from versus we to like the stimulant right. an think are interesting hitting being seeing

or Now to on is – want that you anything sufficient. do Allen, add yes,

So I go ILX. the to

Allen Yang

I in relapse at from R-CHOP lenalidomide I guess, if you the is, frontline. refractory study the original tafasitamab, look what add thing the response No, approaching the mean, combination, the data in could rate was only I

CDXX that of is we on there very doing antibody instead CD sort a were And instead very and but adding a it’s that excited of could that. CDXX So, this something keen are early, it’s possibility again, that. a bispecific potentiate of we

to Sorry, you. Bassil. Back

Bassil Dahiyat

our the boosting therapeutic the strategy profile duration tolerability create this believe No, a with it’s both you’ll well the no. into hypothesis. great. that long we in pre-clinically tolerability with the the hypothesis same on effect. the it better potential of Fc extend ILX ILXX you we the duration our We a design your pharmacodynamic see seen That’s action plays acting believe lower and and in side, XmAbXXX. And of as target action your case, best-in-class cells.. particular and of as data The then, It’s plan exact initial hope that and Again, the so when is would for That can you ILXX the cytokine what longer ILX, to proven year, data trial, we’ll to and here out On well. we as our we and updates. going on feel ILX. does we’ve give be further time our both that pre-clinically guide this can start we potency as

Zhiqiang Shu

Great.

and correct. programs, activated. being ILXX for for domains Is clarify to Just is ILX both that Fc the

Bassil Dahiyat

receptor It’s technology. got been half from binding. no Xtend ablated. And completely That’s long Fc our life it gamma has

Zhiqiang Shu

Got it.

you very much. Thank Okay.

Bassil Dahiyat

you. Thank

Operator

Thank am for any not would you. to And Bassil this time. at like further the I back to I showing further now questions Dahiyat turn call over remarks. any

Bassil Dahiyat

of thank over and the the us forward course you a everybody and we year. you, look for to much, joining updating Have more Bye-bye. so Thanks evening today. wonderful

Operator

Ladies Thank you and today's participating. concludes conference this you. for gentlemen, call. Thank

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