Earnings call transcript Q1 2023

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Operator

Good afternoon, and thank you for standing by. Welcome to Xencor's First Quarter 2023 Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. Please be advised that this call is going to be recorded at the company's request.

turn Head to Investor of to Charles speaker Relations. like from Liles Corporate I'd the your call today, Now, Communications and Go ahead Charles.

Charles Liles

John press up we call Yang, and is good we Nancy at Executive www.xencor.com. we'll topics and open Earlier comments as available the Dahiyat, Chief Officer; will plan Chief joined release, on President Afterwards, abbreviated a your Chief the we Officer; today, you, and the call John Officer. Bassil which questions Valente, Officer; discuss Allen Thank be by Medical to Providing Financial Officer. outlines is afternoon. issued Kuch, today, Desjarlais, Scientific for Chief Chief Development as well and

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

to the call that, pass over Bassil. With I'll

Bassil Dahiyat

we internal a tools protein more CDXX candidate Thanks including our use with take development and and engineered potency cytokines. us broad array lets Charles, tumor target modular and create everyone. reduced afternoon, good antibodies to of multiple CDX portfolio cytokines portfolio our oncology broad novel bispecifics, selective and engineering and bispecifics of disease, This biologies cosiom in At Xencor designs, on the and of data which next the in and partner, from wave clinic make of use room to XmAb goal that advance, engineered resources terminate in studies shots we greatest cytokines. early so success and which for simultaneous stage the proof for programs potential and our programs concept we the with our bispecifics portfolio guide on use which we our we autoimmune

continue to of enroll oncology owned across We portfolio and wholly four X patients Phase autoimmune XmAb candidates. our one trials and X in

we the our T-cell on bispeific now X and exciting CDXX amplify are our sustain drive are Last thereby cytotoxicity. tumor designed bispecifics to of month and area very new presented in that preclinical focus which of T-cells activation CDXX antitumor XmAb the AACR, signal presence antibodies, antigen immuno only are in to costimulatory of portfolio in research XmAb activate oncology.

X. the of IND to XmAbXXX with second plan CDXX development targets generation clinical antibodies candidate and for that data CDXX broad variety a a five program, rapid from targeting our preclinical and internal CDXX, our BX-HX Our bispecific Trop-X STIP-X. poster tumor CDXX the initiated solid platform’s We've highlighted CEA, like year. program file of lead opportunity next targets, phase Recall a using in

that data the ascending cytokine from XmAbXXX XXXX. when presented Our regulatory study at the T-cell dose later next updated data [Technical from we quarter this of to presentation expect to in will Rheumatology single in targeting present We Congress Difficulty] data present Milan. be initially November plan our we biomarker

Nancy. drugs clinical from the of for of the which announced from to team She'll She Desjarlais, benefiting for to and unique work Nancy join our and of team to leadership and CSO, time her a as commit look deep position I'd me and of my see eight welcome our Welcome will to chose And forward people Chief leadership John new months month expertise Nancy close Xencor’s a to POLIVY, the member in scientific up GAZYVA, our comment, activities at company. be last like member all and the like technology resigned, responsible We're programs, development welcome here. delighted we to of Valente Development Officer. of Directors, last appointment our developing Xencor. in was as and VENCLEXTA to HEMLIBRA. for the a she's our and aboard, full Last Board

Now with your Operator? questions. that, we'll open the call

Operator

Mara [Operator Instructions] first Mizuho. from comes Goldstein from question The

Supawat Thongthip

This thank question for you our a is Mara, question. at for I Supawat the taking congrats on XmAbXXX, EULAR. on getting on have slot

then why more Just for what's but curious. be datasets on if competitors, just are I I'm attention mAb know can an including and REZPEG compound. positive atopic pay we should Nektar's biomarker as there'll this and you study? dermatitis Give and the And psoriasis on and terms data of additional XmAbXXX, development, to. in mechanism Amgen's indication curious what guide your selected

Bassil Dahiyat

Any other questions, that was four? about

Supawat Thongthip

all. you, that's Thank

Bassil Dahiyat

Great, let's get started.

T-cells elaboration study the phenotype of were ascending in in T-cells that present the biomarker -- and we're single So of amplified regulatory more November. that dose kind going the is data presented detail that an our that the to particular we really on in

characterizing So how in detail. really more look those

beyond the dosing to of durable punch out we with try you weeks. two extend T-reg is to we're November, has what the a sustained in gotten which delivered every excited know, increases line sort to days remarkably and by opportunity class XX the think interval I to

So enthusiastic we're about mechanism. quite really the

put ideal competitor And in from anything you mentioned has have of less I the CDXX. be you to the to think that do the John, to for data that? than add context their selectivity

John Desjarlais

better, on ours positive CDXX carefully been have surgically profile just binding selectivity is various the and at Tregs available looking reduced more and No. in pharmacokinetic to and preferential like little very effects. pharmacodynamic comparisons in I we potency posters, bit a to maximize mean, to vitro our molecules various based engineered what's

mechanism of action. enthusiastic the So the we're of still quite potential about

about making is think attack I molecule sure that think it's engineered MOA. what to you've you the right really

Now last indication November ascending in in you asked We started of multiple picked atopic to two also study. year. that dose of our also Phase we and easily. to indications treating and dose, Xb good and quite enroll directly and patients we determine One study, dose could selection goals view rapidly we about multi clinical is our there's a schedule that we dermatitis rapidly pick and could that with outcome wanted psoriasis

that at that to safety a Tregs particular, response, to correlate do dermatitis, have good dosing and for look remains good profile. and there actual clinical We think, So the your skin opportunity intervals safety. autoimmune long diseases in allow you atopic can agents strong that, for

Operator

next The comes question the Piper from from of Sandler. line Edward Tenthoff

Edward Tenthoff

this. are be if you to guys But and apologize at missed the what going I get I if when ASCO, update? showing we modality should anything So next

Bassil Dahiyat

new this We're not ASCO data any presenting year. at

we're further We're and data of a now XmAbXXX. As conferences little usually updates that doing little for the fallen that to we we're presentation recall, do. a not and on closer we in-year our we'll has you late the as data, to really towards into closer get tempo on whatever full year -- year on going like did guiding guide specifics just

Operator

comes The the Cheng from line JPMorgan. of Brian from next question

Brian Cheng

XXX, on question one just ILX-Fc. Maybe

So great of point some get you you concept. that is starting a psoriasis for previously to mentioned proof

that forward XXX? here As may XXX? this with market should we for I'm move not TAM for in year, wondering you for data opportunity on early how analyst to think forward this about some any look the to given think molecule, how from early psoriasis next the data, do market be guidance just ultimate a and just we standpoint, the about you

Bassil Dahiyat

how about that the I XXX, we should sorry, think I'm for what word. missed

Brian Cheng

The total for market XXX. addressable

Bassil Dahiyat

We and in which there which still for So just every Xb weeks we well the there. a into made mediated that we about of coming point bound better be clearance patients bit has I longer need, do a dose, Phase up think significant unmet as number we acting little both adding a AD the vudalimab, the breadth agents. atopic and a is excitement of of dermatitis as is by of will severe Lebrikizumab the step two the because with target cohorts on we dosing think in there's a really for patients is monthly, need than know as lot mix

our diseases we colitis, We indications like autoimmune potentially market, know there's just try kinds as of Phase both that going So with a as range into we can on reach ulcerative But there's Xb. to potential total to X things a there's think could -- be range. that competitors that broad about your are like wide in that other diabetes, a remember of concept goes thoughtful addressable wide this drug. some in have differentiation a of for meaningful of adding development type well our you developing proof

So think you Phase for we XXXX. as of market, incredibly additional total see as now be X wait as sort later, say we come addressable or of it could further could right we you out how pick broad define I to in indications this

Operator

of Our next of the David Nierengarten question Securities. Wedbush line from comes

David Nierengarten

that. But the curious where a see had the claudin-X slot know, market evolving, in stages. of potentially? with is it ovarian one early the I cancer just on CDX, would quick I just was you way kind on it's I

Bassil Dahiyat

slam line know there's cytotoxic the agents the coming to potential. it's there's with flux. think And people there's patients to clinic a a in forward landscape rates the fairly are a that this but think see like I we market with think that CDXs, a need. quickly, you're But on, I wide in ADCs this that agent be a to start lot with pretty aiming could a aggressively, try And time the relapse of move I still that would I distinct certainly. the even target have going nothing still you but to anything response with later other door target, lot hitting be think big unmet are -- still first I the a dramatic and not think competitive even of that that with

John Desjarlais

add a read molecules. really resistance I'll therapies too different some those mechanism And of we'll completely much those think the other than action with against CDX. don't on any there's of emerging I

David Nierengarten

there head. likely just a phone, is requirement remember it or of of Could my can't you not broadly the for differential is a I on me here, expression top or or remind least requirements testing expressed? the off at of all maybe but us

Bassil Dahiyat

We some think for There's very discussion. it's heterogeneity. to definitely going this be definitely -- prudent on to closely monitor

Operator

comes Leone of question next to the of Raymond James. The line Dane

Dane Leone

CTLA-X you just us bispecific you program getting an on give Can where see update to? the

Bassil Dahiyat

CTLA-X, Where the you CTLA-X Dane say see did you were we choppy. PDX?

Dane Leone

bispecific global PD-X updates or CTLA-X progress? Yes, terms in the of this and year

Bassil Dahiyat

timing data that year, closer we on As specifically We've program traditionally in definitive get late a events. until saying updated little anything we not we're we're on said earlier, not guiding to yet. the but

our Phase in enrolling well gyn -- monotherapy the as our tumors. chemo, are as first combination the only, in second prostate II IIs, as our Phase We Phase in of well being II, as both well our prostate

we'll we'll data give timing So little update -- guidance later. a bit on

Operator

question comes of next from Kaveri line a from The BTIG. Pohlman

Kaveri Pohlman

have second So about you in think question given how others? this vudalimab. about Can regarding from disappointment been some space? IL-XX, different could this And do for be and my how are tell us your approach it field is that you they

Can you provide trial from subtypes. what you're you enrolling patients per cohorts we for chemo could more you If CRPC? And for combinations forward? to your tell see these as us move like cohort for would XX amendments on different color

Bassil Dahiyat

IL-XX So maybe to you if there? their question, address for the want John, differentiation

John Desjarlais

around. any have have actually something I we all terms First that We of assets the study of of mean, moved about being is the from data don't disappointments, all, in yet.

programs, of the So to what that to was potency. our from potency hard XXX seen to specifically learned IL-XX IL-X designed reduced different, studies, to reduced off similar was tune -- what dramatic is what means. primates that actually response have following We've much that in definitely to IL-XX very really for gradual programs, also it'll what pharmacokinetics, instance, human in interpret we've preclinical fold improvement studies of we've very wild positively more with IL-XX the around than, tolerability compared seen And the it and activity pharmacodynamic index. therapeutic dose and for a potency impact type to in the hope the a non-human impact a IL-XX-Fc. saws we gives you IL-X reduction have we our in molecule is and But designed we it's of evidence it seems

actually And that in we'll best dose lot I'll you like gives teach to very therapeutic note So systemically, I programs. programs injected of viruses are have flexibility being we a think don't comparatives, complex, around the are phase highest just more I lot localized things those there's in that noise delivery index. you relevant oncolytic think really and one on the zero don't anything. those that weren't engineered think cytokines other a

Now vudalimab you to what the as amendment Maybe number trial success on it? the as if Allen, want is your more to bar onto well question, two, the about roughly. on for we touch chemo, think

Allen Yang

to deficient the PARP on group and deficient group, group, remind biomarker study, design. then XXX groups aggressive had we variant had naive just in we had people there, an a PARP recombination homologous MSI the Remember, negative recombination homologous group, we So high treated a group. several

group. So it's on dependent really the

chemotherapy. groups the have of several Now

to XX% on And XX%. response you'd the a about of so chemotherapy regimen, depending expect rate

that. regimens, above most want So would for to see numbers you

like the regimens be much the or lower. will aggressive variant experienced the bar PARP group, some However,

Operator

the of Guggenheim. question Charles of next Our Zhu comes from line

Unidentified Analyst

is Charles. on for This Edward

question XXX, on a Just please.

how strong of link is having pretty to T-reg mechanistic beneficial sort a levels you've the inducing So sort the shown disease? on actually between effect clearly of as

Bassil Dahiyat

signs molecule reducing of other low-dose mimics because CDXX say showing the doses for clear IL-X, one low our comes sort T regs psoriasis density atopic really of data of IL-X, a competitors, X.X on which expression of high selective of decades selectivity of end post the and of read for convincing very the activity and with work as presented RA, modest selectivity. like line lots last I sets from from year, recent evidence shown in fairly lupus, colitis efficacy intractable like prior profound dermatitis indications. mean, And been two there's the muses well like like, durability that program and like other of X of coming that. particular, in treatment. that's Lilly at ulcerative of that auto last actually One in a I'd really diabetes as REZPEG symptoms type wild-type There's

of threads X the evidence. are those So

John Desjarlais

critical to back Yes. have of there's disease. all type add, disease FOXPX I'll is that of just that defect producing regs, And T for IPEX, the have diseases they an remember autoimmune where patients from going having various real and which basics, array a gene,

T are critical very preventing So basic regs from a perspective, for autoimmunity.

Unidentified Analyst

follow-up, if the the Great. And ICOS. maybe a I x on can, just PD-X XXX,

I MS think press in stable with that were the colorectal release you expansion. you mentioned the going forward

that other considering to you Just of cohorts for wondering, are one now? expansion pushed least at and also kind you potential what focus on

Bassil Dahiyat

the expansion Right patients kind colorectal to in we MSS forward relevant MSS would now, focusing on CRC. really a cancer, have path larger that we for know of looking a cohorts if we're number than of had the activity our you in suggest see

designed study sets focusing our for how at You in specifics MSS of in we a we a know particular the which in these time, right now, is later that CRC. ipilimumab, on things is other patients. cohorts, so have age combination in the we're saw, and indications We’ll disclose expansion don't viable be with but what, might suggested this additional

gather data see. eager and enroll so and we're And it the to

Operator

Gregory comes of The Markets. the Capital question from from Renza next RBC line

Ying Wang

internal Congrats constrained innovation is how Maybe thanks heating on and have development Ying This in high on and for Wang the position. would balance questions. in current and the just for just Wondering macro how you level, cash you a this Greg. preservation M&A we seen space, taking are your up thinking with capital about as business cash progress, environment? our

Bassil Dahiyat

molecules clinic many it's you, partnering. and many both to quick our agreements do is aggressive to right years. partnerships, quickly having really making the so We by that's spend the either right? and people put efficient in about the molecules and about been what's able to spend more high But Our on for being clinic to clinic, better, research then try now, the stringent into incredibly cost over we even license drive decisions because basis so is the the the really and or clinical on data early getting from a putting bar focus where hits advance stop about faster

is I but ago, that's Janssen's deal think progressing our hands. year a really program Plamotamab now you that still can see from in

we for the the we So value just as Because involved, to be want balance quick so that's we partnerships unpredictable. a to rights another and and on our decisions years nimble us And of about right, company partnerships over environment. it we the require make. of commercial and as is, molecules party you're build that, capital with fast as so have constrained sustained the to holding own and try spend many but can as

to the stringent of being I and studies be about and strict design advancing doubly really we're So our think efficient. programs

Operator

comes from Berenberg. from The question of next Shu Zhiqiang line the

Bassil Dahiyat

to can go if later. circle we'll back we the next question. Maybe him See with

Operator

up Chang Leerink. be is The line from to Jonathan be next on to brought SVB stage going

Matt Cowper

sort just Cowper of mechanistic R&D question Jonathan. could could that cash. launch I myeloma? wondering multiple a XmAbXXX on expect second that that's you as on Matt just higher piggyback something in just, going last if is stage your provide for And I This wondering quarter. you we was rationale on to these early then for suppose little forward burn if programs? I development any question was this the is I was noticed of

Bassil Dahiyat

want mechanistic the myeloma? rationale in talk do about to of XXX John, Maybe, you

John Desjarlais

as we killer natural there's components mean, disclosed cells. a year -- at extraordinarily that I two actually what it's good ago expanding about

cells daratumumab, daratumumab turns working. And some so that its NK actually with takes as out the out combination the of

that to natural And further sort NK and potentially even so XmAbXXX idea with fratricide sort mitigate the of explore of Genentech's daratumumab. to beyond try Hopefully, it to of that cells a it'll X part expand sort combination was go effect. further the

Bassil Dahiyat

motivated preclinical And with that's some by cevostamab, work. CDX then of other engager, the our just combination also the

this higher receptor as turns because admire of different want question, and IL-X engager, into that too John, utility. has sensitive were of of fact beta, year? more think XXX multiple that are I So But Genentech activate a to on T-cell R&D you recall natural our cost so able receptor the fluctuations express natural killer use much beta. most We also they upregulate kinds guide modalities you spend. maybe preclinically question. wouldn't also cells the quarterly a read such amounts I when the reported And out mean, we with where to explore IL-XX, on you I it cash to it's generally with really the T-cells, it see see IL-X to can the

John Kuch

It’s To consistent. just be your can mean the year. stage the it over R&D. extent I pretty previous preclinical studies question, address be consistently to increased lumpy, there's it's going early was not that it but quarter-to-quarter the to

Operator

Our next Peaker TD the of Boris from question line from comes Cowen.

Unidentified Analyst

This is have I just on a Boris. Ultomiris. Nick quick one on

guys So X press release you that the in AstraZeneca initiation. announced mentioned the Phase study

from So it {hase guys this potentially royalties expecting I you comes was if indication also, potential like if wondering end additional is to payments or it whatnot? approved? And receive this X, milestone the are then you whether from will

Bassil Dahiyat

indication mode worldwide the their claims We received X, of administration, regardless valid that? was question on what your country Phase missed of any q. there's any patent first royalties I on from that IV, And sub

Unidentified Analyst

payments receive Phase If you the would any potentially X? on milestone

Bassil Dahiyat

we get there's sales this more no clinical year, there's a No, milestones only could left, we'll see. milestone left, which

Operator

The King question of comes from of Hutton. the EF next line Michael

Michael King

applies questions one what thoughts might are tumors, success CDXX his there fluid, wondered predict give specific the and not? be to tumors especially bispecifics, other, no Most to John of what is just to greater been solid might assets and the CDX us answered. going on in biology real might solid or as whether have odds I of my succeed versus

John Desjarlais

my me asked You favorite question.

know the head that answer almost it. know head really certainly easy, of anticipated studies recent because CDXs differences that couple CDXs about we solid programs answer validation, and might morning validation to different But your hasn't thinking nice I there sort way been CDXXs associated emerge. the of the for tumors and the But and in of of glib is, been solid you enough there really fact, question, think CDXXs, against antigen. same tumor tumors. I this haven't yet, in is In there There's don't versus any how to nice it, really validation

existing to the T-cells CDX T-cell to reactive, any going either a bystandard could it's if we engager those just to tumor or it's CDXX those advantage in has it tumor, take periphery having and -- they it scene of be T-cells of all going really that is X. build signal going So find can to that the the don't T-cells, takes are around. those basically utilize that know off

if cell. MHC neoantigen combination a signal one T-cell inhibitor you're a actually tumor a complexes peptide doing checkpoint say, recognizing with so the from with CDXX, the -- on the And receptor comes

durability memory T response, And have pure would T-cell so of I'm you're a that building you're up tumor because guessing and expanding for cells. speculation it's specifically response, just actually those T-cell reactive -- just CDXXs potential longer

Operator

comes from question Barclays. a next Our line Lawson of from Peter

Unidentified Analyst

This on Peter. is Jay for

So first, about just quickly, vudalimab.

you whether of prostate the the BX-HX into and you for in speak maybe a you're monotherapy combo see in data and this bispecific, be pursuing peer the such might chance just to also ultimately a on might fitting bit to be going or and how the second based gynecologic speak see therapy? study of success is that for tumors whether maybe And highest you that space? high thinking XXX, could tumors competitive prostate, solid where you So little risk to could

Bassil Dahiyat

be So CRPC. in monotherapy we slice in gyn we I expressly could with and of there think because monotherapy potential vudalimab, indications Stage think the II those ran that

the that. Allen of about in data I believe think can got we we address why expansion cohorts some

Allen Yang

add I going just this to was study. -- XXX-XX that so is Yes. remember, a

the prostate the early marker then had with markers. in signals at gyn define second high-risk group looking opposed as it's prostate a expansion. we're monotherapy. And molecular as shot So clinically our We on an

add studies, activity, schedule. the an well looking activity. one dose it cancer, which as been neat at of one a and about also inhibitors thing lot I need and we're of and have better that ovarian shown studies XX is cervical a will there things endometrial the The is as unmet checkpoint hasn't

weeks. doing post question the So we're other every was then and BX-HX. X flat X-week a dose every schedule And around

Bassil Dahiyat

for Other great we've cancer histologies that would solid nice actually certainly cell proof to got XmAbXXX CDXX it's concept targeting a But nice would we cancer tumor some certainly data, in of Prostate validation and working be bispecifics across at think on sure for the of small with is about There's about. solid prostate BX-HX targeting it. So lung most prostate we’re BX-HX on look validation a expressed indications BX-HX course, based lot right a top. about at is lot excited they're cancer. of going want of to a of BX-HX. tumors and we're take question

Operator

comes from Zhiqiang next The question of line the from Berenberg. Shu

Zhiqiang Shu

I into one criteria to more -- a on move in I and preclinical some you to terms also other AACR. around question clinical molecules at Obviously, targets ask of selecting CDXX data portfolio. or how your you for presented the clinic? the your decide your wonder also want future targets

Bassil Dahiyat

checkpoint could think CDXX the example a So in patients. the criteria small pathway tumors is been that response for where could We tumors we suggests turn data the cold. last had very based They the biggest that albeit think really of immune that's PSMA that cold did number on CDXX by cancer, in the have given think CDXX therapy. presented We in Regeneron be on to that year would by prostate impact.

pretty, could like are cancer, like well with on and gastroesophageal therapy. patients cold, like like labeled ovarian that ones checkpoint list be there's would lot a need the is unmet cetera. -- gastric, of and cancer, colorectal weak, of you pretty nominally checkpoint than a immune tumors there's if longer like right, mean, tumors small the that actually a -- cell so some to list are Even inhibitors et turn I huge respond lung ecstatic that HCC, cancer, And pretty

to on cold signal that's lost because delta patients maybe trying where but a our could be see if think important, if melanoma early could you to it's a you the big in might whether and were tumors. that's we a sort change checkpoint And landscape, RCC, big, it clearly where start you the driving also possible, focusing combination or want deduce a development checkpoints we're like CDXX agent, So warm really of enrolling looks which to you it's targets where the seeing of response. clinical activity swamp be are the pretty I you don't or in right, in

Zhiqiang Shu

just on CDXX things. It using guess, is plus you're And format. other one XX? go a and your I plus of follow-up as for technology side targets in format all quick your the to appears well bispecifics two to two -- CDXX preferred one CDXX it and

Bassil Dahiyat

for all the I would is the a say, There's of tumor preferentially we a of design different, cells. are two different us cells. tools expression room plus one is CDXs normal in therapeutic tool, like kinds the you toolkit. little gives little bit on how different. know, versus the target tumor like is more CDXXs because kill two it cells just believe one We normal a to it's the right? to a bit plus versus our index considerations one in cells Every density, different is

we the we are plus ones also And where the need want we’ll on two one but CDXXs. one the so or plus think that table utilize for

Operator

Thank you remarks. turn for would for like it your questions. Dahiyat Bassil I now to over to closing

Bassil Dahiyat

We forward year. you later much. us And look this the further very joining thanks to give for Thanks afternoon. in updates everybody

Operator

your for does program. you today's the participation conference. Thank conclude This in

disconnect. now may You

Xencor (XNCR) 8 May 232023 Q1 Earnings call transcript