Key Highlights

  • Total revenues were USD 116.5 million in the third quarter, against USD 21.0 million a year earlier, as royalties jumped to USD 87.5 million from USD 21.0 million.
  • Net income attributable to the company was USD 39.4 million, or USD 0.50 per diluted share, versus a net loss of USD 6.0 million, or USD 0.08, last year.
  • A settlement with Alexion over U.S. Ultomiris royalties provides USD 105.0 million in total, with USD 77.4 million recognized as Royalty Revenue in the third quarter.
  • Cash, cash equivalents and marketable Debt securities were USD 555.7 million at September 30, 2026, compared with USD 610.8 million at the end of 2025.

Alexion Settlement Drives a USD 95.5 Million Revenue Jump

Xencor (NASDAQ:XNCR) filed its Quarterly Report on November 4, 2026. Total revenue rose by USD 95.5 million to USD 116.5 million, including USD 29.0 million of milestones and USD 87.5 million of royalties. On March 4, 2026 Alexion said it did not owe further U.S. royalties on Ultomiris, and the company constrained those royalties to zero in the first quarter. A July 29, 2026 settlement resolved the dispute: Xencor is entitled to USD 105.0 million in two equal installments of USD 52.5 million, the first received in August 2026 and the second due within 14 days after the first anniversary. Of the total, USD 27.6 million was recognized in the second quarter and USD 77.4 million in the third. Alexion has no further U.S. royalty obligation, but ex-U.S. royalties continue.

Spending Rises Even as Quarterly Operating Income Turns Positive

The company is a clinical-stage biopharmaceutical Business that engineers antibody drugs for cancer and autoimmune disease using its XmAb platforms. Research and Development expense rose to USD 84.3 million from USD 54.4 million, while general and administrative expense fell to USD 9.4 million from USD 14.2 million. Operating income was USD 22.9 million, against an operating loss of USD 47.5 million a year earlier. Other income, net, was USD 16.4 million, down from USD 41.5 million. The one-time nature of the settlement matters: for the nine months the company still posted a net loss of USD 111.2 million, or USD 1.47 per share, versus USD 85.3 million, or USD 1.15.

XmAb819 Kidney Cancer Data and Cash Runway

In its lead oncology program, XmAb819, the 400 mcg/kg intravenous cohort of 11 evaluable patients showed five confirmed partial responses, a 45.5% confirmed response rate per investigator assessment as of an October 1, 2026 data cut. The company plans to engage the FDA in the first half of 2027 on a possible Accelerated Approval path. Its XmAb541 program showed response rates of about 14% in ovarian cancer and 28% in germ cell tumors, but reversible hearing Impairment limited higher doses. Management said current resources should fund operations for at least the next twelve months. Risks include small cohort sizes, clinical setbacks and dependence on partners' milestones, which the filing calls uncertain.

Where Things Stand

Mainly through a one-time catch-up. Xencor (NASDAQ:XNCR) booked USD 77.4 million of Alexion settlement money as royalty revenue in the quarter, which produced a USD 39.4 million profit. The nine-month net loss of USD 111.2 million shows the quarter was not a run rate. Next markers are the second USD 52.5 million installment, due about a year after the settlement, further XmAb819 data in the first half of 2027 and the planned FDA discussion.