Leerink Partners initiates coverage on Xilio Therapeutics stock with Outperform rating

Published 06/08/2025, 12:08
Leerink Partners initiates coverage on Xilio Therapeutics stock with Outperform rating

Investing.com - Leerink Partners initiated coverage on Xilio Therapeutics Inc (NASDAQ:XLO), currently trading at $0.67 with a market capitalization of $34.5 million, with an Outperform rating and a price target of $2.00. According to InvestingPro analysis, the company holds more cash than debt on its balance sheet.

The research firm expressed enthusiasm for Xilio’s lead clinical program, vilastobart (vila), a conditionally masked CTLA-4 antagonist. When combined with atezolizumab (anti-PD-L1), the program has shown proof-of-concept efficacy in relapsed/refractory microsatellite stable, non-liver metastatic colorectal cancer. InvestingPro data shows analysts anticipate sales growth this year, despite the company not yet being profitable. Get access to 4 more exclusive ProTips and comprehensive financial analysis with an InvestingPro subscription.

Leerink Partners believes vilastobart offers a wider therapeutic window compared to unmasked anti-CTLA-4 treatments, positioning it for potential development and commercial success in both relapsed/refractory and earlier-line colorectal cancer settings. The company maintains a healthy financial position with a current ratio of 1.96 and a gross profit margin of 100%.

The firm also noted that Xilio has clinically proven itself among industry leaders in developing protease-masked biologics that promise wider therapeutic benefits than non-masked active immuno-oncology counterparts. The company has gained clinical experience masking multiple modalities and secured multiple larger biopharma partners.

Leerink Partners highlighted Xilio’s promising pipeline, including IL-12 (XTX-301), PD-1 x IL2 (alpha binding retained), and a portfolio of CD3 T cell engagers, noting the company has learned from previous programs.

In other recent news, Xilio Therapeutics, Inc. announced the initiation of a public offering of warrants, including pre-funded and Series A, B, and C warrants to purchase shares of common stock. The completion and terms of this offering are subject to market conditions, and the proceeds are intended to support the development of Xilio’s product candidates and other corporate needs. Leerink Partners is serving as the sole bookrunner for this offering. Additionally, Xilio Therapeutics has expanded its board of directors with the appointment of Akintunde Bello, Ph.D., as a new member. Dr. Bello, who has over 25 years of experience in oncology drug development, will serve as a Class II director until the 2026 annual stockholders meeting. His extensive background includes a recent role as senior vice president at Bristol Myers (NYSE:BMY) Squibb Company. Dr. Bello will also join the Nominating and Corporate Governance Committee of Xilio’s board. These developments mark significant steps for Xilio Therapeutics in its corporate and strategic growth.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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