Xencor, Inc. (NASDAQ:XNCR) Q3 2023 Earnings Call Transcript

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Nancy Valente: Yes. Because of the reset.

Bassil Dahiyat: Right, right. You want to take that one, Nancy?

Nancy Valente: Yes. I mean we’re aware of – I can’t say that the 5752 products in renal. Some of these names are challenging. And it’s very interesting with great high efficacy. It looks like it – toxicity is manageable. And so we’re pleased to see a product in the same class as vudalimab showing activity like this. I mean it helps us – it helps confirm that this is a product that’s going to be important in different tumor types. We’re not going into renal cancer cells. We made decisions a few years ago on – based on Phase 1 data into which tumor types we go into. It was a span of tumor types. And eventually, we decided to go into some that were checkpoint sensitive and some that were checkpoint resistant and that’s kind of where we are right now. We’re probably not going to add another tumor type after we added lung in the last year.

Jerry Gong: Got it. And if I may ask one more question, also wishing John, best wishes. When do you expect to target a new CFO in your search?

Bassil Dahiyat: Sorry, what do you expect to – when? Yes, we are starting the search right now. We’re starting the search right now. This is going to be a long hard search to replace John. So we got to start now if we’re going to be ready by end of March.

Jerry Gong: Got it. Thanks for taking our questions.

Bassil Dahiyat: Sure.

Operator: Thank you. [Operator Instructions] Our last question comes from the line of Brian Cheng from JPM. Your line is now open.

Brian Cheng: Hey, guys. Thanks for taking my question. John also sad to see you go, looking forward to reconnecting in the future. But just on 564, I recall that we may be expecting some psoriasis data sometime in the early part of next year. So the first is, can you just talk about the timing of the data read? Have you been able to narrow the timing of the – your also guidance? And also, as you think about psoriasis as a testing ground for 564 mechanistically, do you have a sense of what we should expect in terms of using PASI score? What PASI score are you aiming for, so that you can have a strong conviction to move this specific program into other diseases where Treg is as important? Than you for taking my question.

Bassil Dahiyat: Hey, thanks, Brian. I’ll take the second one first. So we’ve always intended psoriasis as a population where we could gather the critical biomarker data, which is the peripheral biomarker – peripheral blood biomarker data is on Treg count, the opposing cell types that you don’t want to have to expand because we have to, from regulatory reasons, do our multiple setting dose in patients, not in healthy volunteers. So psoriasis is a great way to do that and you have easy access to biopsy samples if you want to go there to get additional information. So we’ve always been targeting in the psoriasis population, Treg counts and numbers to select the dose and a dosing interval rather than looking at PASI score as a driver.

That’s something I think we’ve guided since we started. We did add the atopic dermatitis based on intriguing very early and small numbers durability data we saw last year from a competitor program as a way to sort of glean potential there and so that’s – that was sort of the rational for AD. But in that case as well, it was to glean durability and long-term potential – sorry, long-term sort of disease remitted potential generally for the class. We think both of those areas are difficult and challenging in very large indications. And we’ve, of course, been looking around in other smaller indications, as we’ve mentioned, we’d be ready to disclose as we get closer to the time to jump off onto the next set of trials. Once we’re done with dose escalation.

As for timing, we’re still guiding to 2024, and we’ll fill you in when we get there.

Brian Cheng: Great. Thank you so much.

Operator: Thank you. This concludes the question-and-answer session. I would now like to turn it back to Bassil Dahiyat for closing remarks.

Bassil Dahiyat: I’d just like to say to everybody, thank you so much for joining us this afternoon, and have a wonderful evening.

Operator: Thank you for your participation in today’s conference. This does conclude the program. You may now disconnect.

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