Summary: Xencor Inc. disclosed a sale of common stock by SR. Vice President and Chief Scientific Officer John R. Desjarlais, plus awards of restricted stock units and option grants. Separately, the company is addressing a royalty disagreement with Alexion Pharmaceuticals for U.S. sales of Ultomiris while agreeing to continue receiving royalties on sales outside the United States. Xencor has extended the U.S. royalty term for Ultomiris to December 2028 and projects additional royalty revenue from the extension. The company also reiterated its clinical and pipeline objectives for 2026.
According to a Form 4 filing with the Securities and Exchange Commission, John R. Desjarlais sold 2,663 shares of Xencor common stock on March 3, 2026, at a per-share price of $11.8951, yielding total proceeds of $31,676.
The filing also shows that on March 2, 2026, Desjarlais acquired 24,907 shares of common stock with a reported value of $0. Those shares are restricted stock units that vest over a three-year period. In addition, Desjarlais received an award of 149,440 options to purchase common stock at an exercise price of $12.30 per share. Those option awards vest over four years, according to the filing.
In separate corporate developments disclosed in the filing, Xencor is involved in a royalty dispute with Alexion Pharmaceuticals pertaining to U.S. sales of Ultomiris. Alexion will continue to pay royalties for sales made outside the United States. Xencor has extended the royalty term for Ultomiris in the United States until December 2028 after the issuance of a new patent that covers its Xtend Fc domain. Xencor expects that the extension will produce an additional $100 million to $120 million in royalty revenue.
On the analyst front, Truist Securities has reiterated a Buy rating on Xencor, maintaining a $29.00 price target. The firm highlighted momentum in Xencor’s work on TL1A×IL-23p bispecifics as supporting its positive view.
Looking ahead, Xencor has mapped out its pipeline priorities for 2026, concentrating on advancing XmAb candidates aimed at cancer and autoimmune diseases. The company indicated plans to present key clinical data for drug candidates focused on solid tumors and autoimmune conditions over the course of the year.
Key points
- Insider transaction: John R. Desjarlais sold 2,663 shares on March 3, 2026, for $31,676 at $11.8951 per share.
- Compensation and incentives: Desjarlais received 24,907 restricted stock units vesting over three years and 149,440 options exercisable at $12.30 vesting over four years.
- Corporate developments: Xencor extended the U.S. royalty term for Ultomiris to December 2028, expecting $100 million to $120 million in additional royalties; Truist reaffirmed a Buy rating with a $29 target; pipeline focus set for 2026.
Risks and uncertainties
- Royalty dispute - The company is engaged in a royalty disagreement with Alexion over U.S. Ultomiris sales, creating uncertainty in U.S. royalty receipts and potential legal or negotiation outcomes.
- Revenue projection variability - The anticipated $100 million to $120 million in additional royalty revenue depends on the extended U.S. royalty term and related patent protections and payments.
- Clinical development execution - Xencor’s 2026 plans to advance XmAb candidates and present clinical data introduce typical biotech development risks tied to trial outcomes and regulatory processes.