On Monday, Xencor, Inc. (NASDAQ:XNCR) stock received an upgrade from Piper Sandler from Neutral to Overweight, alongside an increase in the price target to $30.00, up from the previous $20.00. This revision reflects a positive outlook on the company's expansion of its XmAb technology into the realm of autoimmune disease.
The stock, currently trading at $25.60, has shown strong momentum with a 36% return over the past year. According to InvestingPro data, four analysts have recently revised their earnings expectations upward, with price targets ranging from $20 to $40.
The biopharmaceutical company is set to release initial Phase I healthy volunteer data on XmAb942 (TL1A) in the first half of 2025, and will also begin a Phase Ib/IIa study of plamatomab (CD20xCD3) in rheumatoid arthritis within the same timeframe.
Furthermore, a Phase I study of XmAb657 (CD19xCD3) is scheduled for the second half of 2025. With a market capitalization of $1.79 billion, Xencor maintains strong liquidity, as evidenced by a current ratio of 6.23.
Xencor has several other key developments anticipated in the near future. Phase II data for vudalimab as a monotherapy and in combination with chemotherapy in metastatic castration-resistant prostate cancer (mCRPC), as well as Phase Ib/II data comparing vudalimab to Keytruda in first-line non-small cell lung cancer (NSCLC), are expected in the first half of 2025. Additionally, Phase I data on XmAb819 (ENPP3xCD3) in kidney cancer, and XmAb808 (B7-H3xCD28) in solid tumors are also anticipated in the first half of the year.
Collaborative efforts are also underway, with Amgen (NASDAQ:AMGN) initiating a Phase III mCRPC study of xaluritamig (STEAP1xCD3), and Johnson & Johnson conducting Phase I studies of two CD28 bispecific antibodies.
As of the third quarter of 2024, Xencor reported a cash reserve of $754 million, which is expected to fund its operations into 2028, providing a solid financial foundation for its research and development activities.
InvestingPro analysis confirms the company's strong balance sheet position, holding more cash than debt. Discover more insights and 10 additional ProTips about Xencor in the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Xencor reported third-quarter financial results for 2024, with revenues of $10.7 million. The company also announced plans for new clinical development of its therapeutic candidates, including plamotamab (CD20 x CD3), XmAb657 (CD19 x CD3), and XmAb942 (anti-TL1A). In response to these developments, BMO Capital Markets maintained its Outperform rating on Xencor and raised the price target to $34.
Further, Xencor is set to begin Phase 1 human trials for its XmAb942 antibody, targeting inflammatory bowel diseases, with initial data expected in the first half of 2025. The company also announced a public stock offering priced at $18 per share, aiming to raise approximately $175 million.
RBC Capital Markets, following a visit to Xencor, raised its price target for the company to $34, maintaining an Outperform rating. However, Barclays (LON:BARC) reaffirmed its underweight rating on the company.
In addition to these developments, board member Dagmar Rosa-Bjorkeson will depart Xencor to pursue new business opportunities. These are the recent developments in Xencor's journey.
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