Xencor Announces Proposed Public Offering of Common Stock

Rhea-AI Summary

Xencor (Nasdaq: XNCR), a clinical-stage biopharmaceutical company, has announced a proposed public offering of common stock and pre-funded warrants. The offering includes a 30-day option for underwriters to purchase up to an additional 15% of shares. Leerink Partners, Raymond James, and RBC Capital Markets are acting as joint book-running managers, with Wedbush PacGrow as co-manager.

The company plans to use the net proceeds for general corporate purposes, including research and development, capital expenditures, and working capital. The offering is being made through an automatic shelf registration statement on Form S-3, with a preliminary prospectus supplement to be filed with the SEC.

Positive

• Potential to raise significant capital for general corporate purposes
• Flexibility in offering structure with common stock and pre-funded warrants
• Strong underwriting team with reputable financial institutions

Negative

• Potential dilution of existing shareholders' equity
• Uncertainty regarding the size and terms of the offering
• Market conditions may affect the success and pricing of the offering

Financial Analyst

Xencor's proposed public offering of common stock and pre-funded warrants is a significant capital-raising event. This move suggests the company is seeking to strengthen its financial position, potentially to fund ongoing clinical trials or expand its pipeline. The inclusion of pre-funded warrants provides flexibility for certain investors and may indicate a strategy to attract a diverse investor base.

The involvement of reputable underwriters like Leerink Partners, Raymond James and RBC Capital Markets lends credibility to the offering. However, investors should note that this will likely result in dilution of existing shareholders. The company's intention to use proceeds for "general corporate purposes" is quite broad, which may raise questions about specific strategic plans.

Overall, while this offering could provide Xencor with necessary capital for growth, investors should carefully consider the potential dilution and lack of specific use of funds in their investment decisions.

Biotech Industry Expert

Xencor's decision to raise capital through a public offering is a common strategy in the biotech sector, especially for clinical-stage companies. This move suggests that Xencor is preparing for significant upcoming milestones in its clinical programs or potential expansion of its engineered antibody platform.

The company's focus on developing antibodies for cancer and other serious diseases places it in a high-potential, but high-risk sector. The additional capital could accelerate Xencor's research and development efforts, potentially leading to faster progression of its pipeline candidates. However, investors should be aware that clinical-stage biotech companies often require multiple rounds of financing before reaching profitability.

The success of this offering and subsequent use of funds will be important in determining Xencor's ability to advance its clinical programs and potentially bring new treatments to market. Investors should closely monitor the company's clinical trial progress and pipeline developments in the coming months.

Market Research Analyst

Xencor's public offering comes at a time when the biotech sector is experiencing renewed investor interest. The company's decision to tap into the public markets may be strategically timed to capitalize on this trend. However, the success of the offering will largely depend on current market conditions and investor appetite for clinical-stage biotech stocks.

The inclusion of pre-funded warrants in the offering is an interesting financial instrument that could attract institutional investors looking for flexibility in their investment timing. This approach may help Xencor secure the desired funding even in a potentially volatile market.

Investors should pay attention to the pricing and demand for this offering, as it will provide insights into market perception of Xencor's value and potential. A successful raise could position the company well against its competitors, while any challenges in completing the offering might signal investor caution towards the company or the broader biotech sector.

PASADENA, Calif.--(BUSINESS WIRE)-- Xencor, Inc. (“Xencor”) (Nasdaq: XNCR), a clinical-stage biopharmaceutical company developing engineered antibodies for the treatment of cancer and other serious diseases, today announced that it has commenced an underwritten public offering of shares of its common stock, or, in lieu of common stock to certain investors that so choose, pre-funded warrants to purchase shares of common stock. Xencor also intends to grant the underwriters a 30-day option to purchase up to an additional 15% of the aggregate number of shares of its common stock (including shares of common stock underlying pre-funded warrants) offered in the public offering at the public offering price, less the underwriting discounts and commissions. All of the shares of common stock and pre-funded warrants, if any, to be sold in the proposed offering are to be sold by Xencor. The proposed offering is subject to market and other conditions, and there can be no assurance as to whether or when the proposed offering may be completed, or as to the actual size or terms of the proposed offering.

Leerink Partners, Raymond James and RBC Capital Markets are acting as joint book-running managers for the proposed offering. Wedbush PacGrow is acting as a co-manager for the offering.

Xencor currently intends to use the net proceeds from the proposed offering for general corporate purposes, which may include research and development, capital expenditures, working capital and general and administrative expenses.

The proposed offering is being made pursuant to an automatic shelf registration statement on Form S-3 (File No. 333-270030), previously filed with the Securities and Exchange Commission (the “SEC”) on February 27, 2023 and which automatically became effective upon filing. The securities may be offered only by means of a prospectus and prospectus supplement that form a part of the registration statement. A preliminary prospectus supplement and the accompanying prospectus relating to and describing the terms of the proposed offering will be filed with the SEC and will be available on the SEC’s website at www.sec.gov. When available, copies of the preliminary prospectus supplement and the accompanying prospectus relating to the proposed offering may also be obtained by contacting Leerink Partners LLC, Attention: Syndicate Department, 53 State Street, 40th Floor, Boston, Massachusetts 02109, by telephone at (800) 808-7525, ext. 6105, or by email at syndicate@leerink.com; from Raymond James & Associates, Inc., Attention: Equity Syndicate, 880 Carillon Parkway, St. Petersburg, Florida 33716, by telephone at (800) 248-8863, or by email at prospectus@raymondjames.com; or from RBC Capital Markets, LLC, Attention: Equity Capital Markets, Brookfield Place, 200 Vesey Street, 8th Floor, New York, New York 10281, by telephone at (877) 822-4089 or by email at equityprospectus@rbccm.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.

About Xencor

Xencor is a clinical-stage biopharmaceutical company developing engineered antibodies for the treatment of patients with cancer and other serious diseases. More than 20 candidates engineered with Xencor’s XmAb® technology are in clinical development, and three XmAb medicines are marketed by partners. Xencor’s XmAb engineering technology enables small changes to a proteins structure that result in new mechanisms of therapeutic action.

Forward-Looking Statements

This press release contains forward-looking statements under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including statements regarding Xencor’s expectations on the timing, size and completion of the proposed offering, Xencor’s intention to grant the underwriters a 30-day option to purchase additional shares, and the anticipated use of proceeds therefrom. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially and adversely and reported results should not be considered as an indication of future performance. These risks and uncertainties include, but are not limited to: risks and uncertainties associated with market and other conditions and the satisfaction of customary closing conditions related to the proposed public offering and other risks that are described in Xencor’s most recent periodic reports filed with the SEC, including Xencor’s Annual Report on Form 10-K for the year ended December 31, 2023, including the risk factors set forth in those filings. These forward-looking statements speak only as of the date hereof. Xencor disclaims any obligation to update these forward-looking statements, except as required by applicable law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240910494413/en/

Charles Liles

cliles@xencor.com

(626) 737-8118

Source: Xencor, Inc.

FAQ

What is the purpose of Xencor's (XNCR) proposed public offering?

Xencor (XNCR) intends to use the net proceeds from the proposed offering for general corporate purposes, including research and development, capital expenditures, working capital, and general and administrative expenses.

Who are the underwriters for Xencor's (XNCR) proposed public offering?

Leerink Partners, Raymond James, and RBC Capital Markets are acting as joint book-running managers for Xencor's (XNCR) proposed offering. Wedbush PacGrow is acting as a co-manager.

What types of securities is Xencor (XNCR) offering in this public offering?

Xencor (XNCR) is offering shares of its common stock and, for certain investors, pre-funded warrants to purchase shares of common stock.

How can investors access the prospectus for Xencor's (XNCR) proposed offering?

The preliminary prospectus supplement and accompanying prospectus will be available on the SEC's website at www.sec.gov. Investors can also request copies from the underwriters: Leerink Partners, Raymond James, and RBC Capital Markets.