Xencor, Inc. (NASDAQ:XNCR) Q2 2023 Earnings Call Transcript

And I think that’s important, really, when we think about how we’re looking at competitor data, in particular, the molecule formerly known as MEDI5752 at AstraZeneca, which was designed with a very similar rationale, and that’s the only one that we’re aware of in the clinic with the same kind of highly selective rationale for the cells that have both PD-1 and CTLA-4. So essentially, your CTLA-4 engagement is conditional on PD-1 being there. The hope is to reduce the scope of cells the T cells that you’re activating that you don’t want. Maybe you want to comment on why frontline lung?

Nancy Valente: Yeah, I’d love to. So when we looked at the MEDI5752 data and really compare the patient populations, what we had previously observed in our Phase I dose escalation and expansion, we thought it would make sense to go into front line lung. Our patients, in particular, are really heavily pretreated. So they have a median of three prior lines of therapy, although one received prior checkpoint inhibitors and 40% actually received two checkpoint inhibitors. So a much different population than the competitor where those patients are checkpoint naive and not as heavily pretreated. So we thought this would be a great place to go. They provided a proof of concept. And maybe we’ll see something really interesting there.

Etzer Darout: Great. Thank you.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Edward Tenthoff from Piper Sandler. Please go ahead.

Edward Tenthoff: Great. Thank you very much. I’m excited about the various updates. This is really cool. So when it comes to lung cancer, again, appreciating that initially, it will be sort of a reasonable size study. Longer term, is this an area where you think you might seek to partner? Or how are you guys thinking about that right now? Thanks.

Bassil Dahiyat: Yeah. I think right now, we want to focus on building value in the program by generating data in this really large population of frontline lung in combo with chemo and demonstrate that we can have the kind of activity that would get us excited. We certainly see AstraZeneca was excited by their initial activity as well as the, hopefully, differentiated safety profile that we have seen so far from PD-1, CTLA-4 combination therapy. I think beyond that initial engagement — sorry, beyond that initial data that we want to see, I think it does make us think about partnering in a different way than when we were focusing on smaller populations in later-line patients. Certainly, the opportunity is huge to try to do better than standard of care therapy because, again, the majority of patients do relapse within — or don’t respond at all within the first two years.

So there’s a lot of opportunity. But it does make us think about how our partnership with the added scope and scale could accelerate things. But we’ll consider that when it would accelerate things, which we don’t think is now at this critical stage of establishing that we have the right efficacy safety profile.

Edward Tenthoff: All right. That make sense. Helpful. Great, thanks for the update.

Operator: Thank you very much. Please standby for our next question. Our next question comes from the line of Brian Chang from JPMorgan. Your line is open.

Brian Chang: Hey, guys. Thanks for taking my question this afternoon. Maybe just one on vudalimab in your new indication in non-small cell lung. Can you give us some color on how you’re thinking about the bar for non-small cell, given the targets that you’re shooting for? I’m interested to see if you have a sense of — especially in the second part where you’re trying to compete against pembro plus chemo. How much delta are you looking for in terms of PFS that you will need to push this program forward? And then I have a follow-up. Thank you.

Bassil Dahiyat: Sure. I think — we don’t want to comment yet on specific deltas we’re targeting for how we powered the study. But we do note that it’s extension of PFS that we saw with the competitor PD-1xCTLA-4 that really seemed to potentially differentiate, and that’s why we made that the primary endpoint. But I don’t think we’re quite ready to comment quantitatively on the Bar success. We will absolutely address that a little bit later.

Brian Chang: Okay. And then maybe just one more on just as a recap on data flow for the near term. Can you remind us, aside from the vudalimab and also the 564 data updates more towards the early part of 2024. What other data catalysts or potential catalysts that investors should look out for?

Bassil Dahiyat: Yeah. So as we’ve sort of been doing this year, we’re not guiding on specific timing of data until we get closer to the events. We want to make sure we can offer certainty and not distraction. But we do expect in next year, we would have updates on our XmAb104 PD-1x ICOS program, which has been enrolling really well in microsatellite stable colorectal cancer. And we are also — that’s expansion cohorts. We would also expect to have next year data from our XmAb19 program which is our ENPP3 targeting CD3 and we are hopeful also we’ll have some things to say about our XmAb 808 program, which is our first CD28 bispecific in the clinic by then as well. So that’s the setup. There’s a lot of flow from these earlier-stage programs for next year.