Word of Timely Testing Spurs Interest in Xencor

0

Sometimes it’s all in the timing.

Late last month, Monrovia biomed company Xencor Inc. announced that it started clinical trials for its asthma drug. For a company that just went public six months ago, such an announcement might easily be overlooked. But it came just as the small-cap biomedical sector was rebounding from a slump; according to Bloomberg, the sector has gained 12 percent in the last three months. That spurred investors to hunt for promising companies.

And they found Xencor, sending its shares soaring 23 percent to close at $11.01 for the week ending June 11, making it one of the biggest gainers on the LABJ Stock Index. (See page 40.) Shares rose another 4 percent on June 12 to close at $11.46.

Xencor’s drug entered clinical trials on schedule. In an industry fraught with delays, that drew the attention of analysts.

“Key allergy program on track: Phase I starts on time,” Credit Suisse analyst Jason Kantor said in his May 28 note to investors.

Xencor’s drug is designed to treat severe asthma patients. It targets the production of an antibody that can trigger intense asthma attacks.

Today, the main drug targeting this antibody is Xolair; it’s been on the market for about a decade and last year had roughly $1.3 billion in sales, making it a blockbuster. However, it’s not usually administered to patients with high levels of that specific type of antibody, Kantor said in his May 28 report. “It’s generally viewed as an imperfect drug,” he said, and that leaves room for Xencor.

Bassil Dahiyat, Xencor’s chief executive, told the Business Journal last week that his company’s drug improves on Xolair because it does a better job clearing that antibody, immunoglobin E, or IgE, out of the body. “That makes it more effective in patients with high IgE levels,” he said.

The first clinical trial involves 64 patients. Initial results are expected toward the end of this year.

He acknowledged there are no guarantees.

“We’ve got a great thesis for why it ought to be effective in treating this disease,” Dahiyat said. “Now we have to see how well it works in human beings.”

The company is also working on other drugs. However, most of those are being developed in partnerships; for example, Xencor has a licensing agreement with Thousand Oaks biotech giant Amgen Inc. for an arthritis drug.

“We’re trying to cast a wide net – to put as many ‘shots on goal’ as possible with many different drugs,” Dahiyat said.

Previous article TrueCar Partners with Farmers
Next article Stocks Up
Howard Fine
Howard Fine is a 23-year veteran of the Los Angeles Business Journal. He covers stories pertaining to healthcare, biomedicine, energy, engineering, construction, and infrastructure. He has won several awards, including Best Body of Work for a single reporter from the Alliance of Area Business Publishers and Distinguished Journalist of the Year from the Society of Professional Journalists.

No posts to display