John R. Desjarlais, Senior Vice President and Chief Scientific Officer at Xencor Inc . (NASDAQ:XNCR), recently sold 9,697 shares of the company’s common stock. The shares were sold at an average price of $13.5971 each, amounting to a total transaction value of $131,851. Following this sale, Desjarlais retains ownership of 236,574 shares in the company. The transaction comes as XNCR trades near its 52-week low of $13.42, with the stock down over 40% year-to-date. InvestingPro analysis suggests the stock is currently undervalued.
The sale was conducted to cover withholding taxes upon the vesting of 25,104 restricted stock units, as noted in the filing. Xencor Inc., a pharmaceutical company based in Pasadena, California, specializes in developing engineered monoclonal antibodies for the treatment of cancer and autoimmune diseases. With a market capitalization of $953 million and a strong liquidity position (current ratio of 6.61), the company maintains robust financial flexibility despite rapid cash burn. For deeper insights into XNCR’s financial health and growth prospects, check out the comprehensive research report available on InvestingPro.
In other recent news, Xencor Inc has announced plans to restate its financial statements for the fiscal year ending December 31, 2023, and subsequent quarterly periods through September 30, 2024. This decision follows the discovery of errors in accounting for a royalty transaction and tax misstatements, as identified by the Audit Committee in consultation with management and RSM US LLP. The company recognized that a royalty transaction with OMERS Life Sciences was incorrectly accounted for as deferred income instead of debt, resulting in a $12.4 million understatement of accounts receivable and a $156.9 million overstatement of deferred income. Additionally, revenue and interest expense for the same period were understated by $6.3 million and $5.5 million, respectively. Xencor also identified a material weakness in its internal control over financial reporting related to this transaction. Further, the company discovered a misstatement in its research and development expenses under tax code Section 174, leading to an uncertain tax position estimated at $5.6 million. Despite these financial errors, the company stated that its reported cash, cash equivalents, and marketable debt securities would remain unaffected. Xencor plans to file the necessary amendments before submitting its Annual Report for the fiscal year ended December 31, 2024.
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