Leerink Swann Reiterates a Buy Rating on Xencor Inc

By Ryan Adsit

In a report released yesterday, Michael Schmidt from Leerink Swann reiterated a Buy rating on Xencor Inc (NASDAQ: XNCR), with a price target of $26. The company’s shares opened today at $20.54.

Schmidt observed:

“We’re updating our estimates to account for 3Q16 financial results and are reiterating our OP rating on XNCR shares. We believe XNCR’s differentiated antibody engineering platform will continue to garner strategic interest, while existing partnered and proprietary pipeline programs continue to mature. 13 wholly-owned or partnered antibody programs are expected to be in clinical trials by 2018, including 4 bispecific antibodies. XNCR is very well-capitalized; it ended 3Q16 with $301.9M in cash and equivalents, which management expects to be sufficient to fund operations beyond 2019. Reiterate OP. XmAb5871 on track with 2 ongoing Ph II studies in IgG4-related disease (IgG4-RD) and systemic lupus erythematosus (SLE). Preliminary data from the IgG4-RD Phase II study will be presented at the American College of Rheumatology (ACR) 2016 Annual Meeting on 11/3, with additional data expected in 2017. Initial data in SLE are expected in 2018. A Ph I study with a subcutaneous formulation of XmAb5871 was initiated in July, with initial data expected in 2017. Strong scientific rationale is supportive of XmAb5871 dev’t in IgG4-RD in our view in addition to the unmet medical need, lack of competition, and potl. accelerated approval pathway.”

According to TipRanks.com, Schmidt is a 5-star analyst with an average return of 7.7% and a 47.4% success rate. Schmidt covers the Healthcare sector, focusing on stocks such as Ionis Pharmaceuticals Inc, Adaptimmune Therapeutics, and Karyopharm Therapeutics.

Xencor Inc has an analyst consensus of Strong Buy, with a price target consensus of $26.

Xencor Inc’s market cap is currently $839.8M and has a P/E ratio of 22.54. The company has a book value ratio of 4.0258.

Based on the recent corporate insider activity of 42 insiders, corporate insider sentiment is negative on the stock. Most recently, in September 2016, John S. Stafford, a Major Shareholder at XNCR sold 40,000 shares for a total of $1,028,625.

Xencor, Inc. is a clinical-stage biopharmaceutical company, which focuses on discovering and developing engineered monoclonal antibodies to treat severe and life-threatening diseases with unmet medical needs. It uses proprietary XmAb technology platform to create next-generation antibody product candidates designed to treat autoimmune and allergic diseases, asthma, cancer, and other conditions. The company was founded Bassil I. Dahiyat and Stephen L. Mayo in August 1997 and is headquartered in Monrovia, CA.