Biopharma firm Xencor's Q3 revenue eases past estimates on Alexion royalty contribution
Overview
US biopharma firm's Q3 revenue rose sharply, beating analyst expectations
Q3 adjusted EPS was $0.50, reversing a loss in the prior-year quarter
Higher R&D costs drove expense growth; G&A fell due to legal recovery
Outlook
Xencor expects to end 2026 with $480 mln to $500 mln in cash and equivalents
Company anticipates sufficient cash resources to fund operations into 2029
Xencor plans to present additional XmAb819 data and XmAb412 initial data in 1H27
Result Drivers
ROYALTY AND MILESTONE REVENUE - Co said Q3 revenue growth was mainly driven by royalty revenue from Alexion and Incyte and milestone revenue from Astellas
HIGHER R&D COSTS - Increased Q3 R&D expenses were attributed to higher external and internal costs for development programs, partially offset by lower stock-based compensation
LEGAL EXPENSE RECOVERY - Q3 G&A expenses decreased mainly due to a non-recurring recovery of legal expenses
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $116.50 mln | $78.59 mln (9 Analysts) |
Q3 EPS | $0.50 |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the biotechnology & medical research peer group is "buy"
Wall Street's median 12-month price target for Xencor, Inc. is $43.00, about 22.8% above its November 4 closing price of $35.03
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Nov 3 - Amgen Q3 revenue beats expectations on higher volumes
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)