Xencor Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Xencor Inc. has filed its 2023 10-K report detailing its fiscal year operations and financial standing.</b>

AI Summary

Xencor Inc (XNCR) filed a Annual Report (10-K) with the SEC on February 29, 2024. Xencor Inc. filed its 2023 Form 10-K on February 29, 2024, reporting on the fiscal year ending December 31, 2023. The company is incorporated in Delaware and operates in the Pharmaceutical Preparations industry (SIC 2834). Xencor's principal business address is 465 N. Halstead St., Suite 200, Pasadena, CA 91107. The filing covers the fiscal year from January 1, 2023, to December 31, 2023. The report includes financial data for the fiscal years 2023, 2022, and 2021.

Why It Matters

For investors and stakeholders tracking Xencor Inc, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Xencor's financial performance, operational activities, and risk factors for the fiscal year 2023, which is crucial for investors to assess the company's health and future prospects. The detailed financial statements and disclosures within the 10-K allow stakeholders to understand the company's revenue, expenses, assets, liabilities, and cash flows, enabling informed investment decisions.

Risk Assessment

Risk Level: medium — Xencor Inc shows moderate risk based on this filing. The company faces risks related to supplier concentration, with two suppliers accounting for accounts payable, and customer concentration, with major customers impacting accounts receivable, indicating potential operational and financial vulnerabilities.

Analyst Insight

Investors should carefully review the 'Risk Factors' section of the 10-K to understand potential challenges Xencor faces, particularly concerning supplier and customer dependencies.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-02-29 — Filing Date (As of date)
• 2023 — Fiscal Year (Reporting period)
• 2022 — Previous Fiscal Year (Financial data comparison)
• 2021 — Prior Fiscal Year (Financial data comparison)

Key Players & Entities

• Xencor Inc. (company) — Filer name
• 2023 (date) — Fiscal year end
• 2024-02-29 (date) — Filing date
• Pasadena, CA (location) — Business address city and state
• 2834 (industry) — Standard Industrial Classification

FAQ

Risk Factors

• Supplier Concentration Risk [medium — financial]: The company is exposed to supplier concentration risk, with two suppliers accounting for its accounts payable.
• Customer Concentration Risk [medium — financial]: Xencor faces customer concentration risk, as major customers represent a significant portion of its accounts receivable.

Industry Context

Xencor Inc. operates within the Pharmaceutical Preparations industry, focusing on the development of novel protein therapeutics.

Regulatory Implications

As a pharmaceutical company, Xencor is subject to regulatory oversight from bodies like the FDA, impacting drug development, clinical trials, and market approval processes.

What Investors Should Do

1. Analyze the detailed financial statements for revenue trends, profitability, and cash flow.
2. Review the 'Risk Factors' section for specific threats to the company's operations and financial stability.
3. Examine any disclosures regarding collaborations, partnerships, or clinical trial progress.

Year-Over-Year Comparison

This filing is the annual 10-K report for the fiscal year ending December 31, 2023, providing updated financial and operational information compared to previous filings.

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share XNCR The Nasdaq Global Market
• $111.7 million — In 2023, we received total proceeds of $111.7 million in upfront payments, milestone payments
• $215.0 million — rom such arrangements. We also received $215.0 million for the sale of a portion of our royalt
• $49.5 million — our partners. These medicines generated $49.5 million in royalty revenue for us in 2023, whic

Filing Documents

• xncr-20231231.htm (10-K) — 1992KB
• xncr-20231231xexx1047.htm (EX-10.47) — 613KB
• xncr-20231231xexx231.htm (EX-23.1) — 2KB
• xncr-20231231xexx311.htm (EX-31.1) — 10KB
• xncr-20231231xexx312.htm (EX-31.2) — 10KB
• xncr-20231231xexx321.htm (EX-32.1) — 5KB
• xncr-20231231xexx322.htm (EX-32.2) — 5KB
• xncr-20231231xexx97.htm (EX-97) — 44KB
• xncr-20231231_g1.jpg (GRAPHIC) — 92KB
• 0001326732-24-000006.txt (&nbsp;) — 11497KB
• xncr-20231231.xsd (EX-101.SCH) — 81KB
• xncr-20231231_cal.xml (EX-101.CAL) — 100KB
• xncr-20231231_def.xml (EX-101.DEF) — 471KB
• xncr-20231231_lab.xml (EX-101.LAB) — 963KB
• xncr-20231231_pre.xml (EX-101.PRE) — 742KB
• xncr-20231231_htm.xml (XML) — 1423KB

Business

Business 4 Item 1A

Risk Factors

Risk Factors 25 Item 1B Unresolved Staff Comments 48 I tem 1C C ybersecurity 48 Item 2

Properties

Properties 49 Item 3

Legal Proceedings

Legal Proceedings 50 Item 4 Mine Safety Disclosures 50 PART II Item 5 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 50 Item 6 [Reserved] 51 Item 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 51 Item 7A

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 67 Item 8 Consolidated Financial Statements and Supplementary Data 68 Item 9 Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 107 Item 9A

Controls and Procedures

Controls and Procedures 107 Item 9B Other Information 108 I tem 9C D i sclosure Regarding Fore ign Jurisdiction that Prevent Inspections 108 PART III Item 10 Directors, Executive Officers and Corporate Governance 109 Item 11

Executive Compensation

Executive Compensation 109 Item 12

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 109 Item 13 Certain Relationships and Related Transactions, and Director Independence 109 Item 14 Principal Accounting Fees and Services 109 PART IV Item 15 Exhibits, Financial Statement Schedules 109 Item 16 Form 10-K Summary 114

Signatures

Signatures 115 The Xencor logo is a trademark of Xencor, Inc. XmAb and Proteins by Design are also registered trademarks of Xencor. All other product and company names are trademarks of their respective companies. References in this Annual Report on Form 10-K to "we", "our", "us", "Xencor" or "the Company" refer to Xencor, Inc. 2 PART I

Forward-Looking Statements

Forward-Looking Statements This Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this Annual Report on Form 10-K other than statements of historical fact, including statements regarding our future results of operations and financial position, our business strategy and plans, and our objectives for future operations, are forward-looking statements. You should not place undue reliance on these statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends affecting the financial condition of our business. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth below under Part I, Item 1A, "Risk Factors" in this Annual Report. These statements, which represent our current expectations or beliefs concerning various future events, may contain words such as "may," "will," "expect," "anticipate," "intend," "plan," "believe," "estimate" or other words indicating future results. Such statements may include, but are not limited to, statements concerning the following: the effects of inflation on our financial condition, resul

Business

Item 1. Business. Overview We are a clinical-stage biopharmaceutical company focused on discovering and developing engineered antibody therapeutics to treat patients with cancer and other serious diseases, who have unmet medical needs. We use our protein engineering capabilities to increase our understanding of protein structures and interactions and to design new technologies and XmAb drug candidates with improved properties. We advance these candidates into clinical-stage development, where we are conducting Phase 1 and Phase 2 studies for a broad portfolio of programs, to determine which programs we advance into later stages of development and potentially commercialization, which programs we partner to access complementary resources to optimize development, and which programs we terminate. Our approach to protein design includes engineering Fc domains, the parts of antibodies that interact with multiple segments of the immune system and control antibody structure. The Fc domain is constant and interchangeable among antibodies, and our engineered XmAb Fc domains can be readily substituted for natural Fc domains. Our protein engineering capabilities and Fc technologies enable us and our partners to develop XmAb antibodies and other types of biotherapeutic drug candidates with improved properties and functionality, which can provide innovative approaches to treating disease and potential clinical advantage over other treatment options. For example, we have developed an antibody scaffold to rapidly create novel multi-specific antibodies that bind two or more different targets simultaneously, creating entirely new biological mechanisms. Other applications of our protein engineering technologies enhance antibody performance by increasing immune inhibitory activity, improving cytotoxicity, extending circulating half-life and stabilizing novel protein structures, such as engineered cytokines. Three marketed XmAb medicines have been developed with our protein engineer

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