Xencor Inc. reported that its licensee, Alexion Pharmaceuticals, will not pay any additional U.S. royalties for sales of Ultomiris (ravulizumab‑cwvz). The decision follows the issuance of U.S. Patent 12,492,253, which Xencor had expected to generate $100 million to $120 million in low‑single‑digit royalties through 2028.
The royalty loss removes a projected revenue stream that had been a key component of Xencor’s cash runway. The company had previously forecasted that the royalty payments would support operations into mid‑2028, and the loss of this income forces a reassessment of its financial outlook and potential need for additional funding or accelerated milestones.
Xencor now expects to end 2026 with $380 million to $400 million in cash, cash equivalents, and marketable debt securities, a downward revision from the prior $400 million to $430 million guidance. The company believes this liquidity will still fund operations through mid‑2028, but the reduced cushion heightens the urgency of securing alternative revenue sources.
Alexion will continue paying royalties on sales outside the United States, and Xencor has not observed a change in those payments. CEO Bassil Dahiyat noted that “One licensee has expressed disagreement regarding payments for net sales of Ultomiris in the United States, and we plan to work toward a resolution in this matter. Importantly, we have not observed a change in payments related to ex‑U.S. sales.”
The announcement underscores the vulnerability of Xencor’s partner‑dependent model, where a single licensee’s change in royalty policy can materially affect the company’s cash position and strategic plans. Investors will be watching for Xencor’s next steps to mitigate the impact and secure alternative revenue sources.
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