0001558370-22-011923 | 10-Q | XBRL Viewer

Print Document View Excel Document

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2022	Jul. 29, 2022
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2022
Entity File Number	001-36182
Entity Registrant Name	Xencor Inc
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-1622502
Entity Address, Address Line One	111 West Lemon Avenue
Entity Address, City or Town	Monrovia
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	91016
City Area Code	626
Local Phone Number	305-5900
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	XNCR
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		59,698,148
Entity Central Index Key	0001326732
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2

Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Current assets
Cash and cash equivalents	$ 49,410	$ 143,480
Marketable debt securities	435,623	153,767
Marketable equity securities	26,885	36,860
Accounts receivable	54,284	66,384
Prepaid expenses	19,734	23,877
Total current assets	585,936	424,368
Property and equipment, net	38,855	28,240
Patents, licenses, and other intangible assets, net	17,944	16,493
Marketable debt securities - long term	140,413	300,465
Marketable equity securities - long term	31,124	31,262
Notes receivable - long term	5,000	5,000
Right of use (ROU) asset	31,440	31,730
Other assets	613	653
Total assets	851,325	838,211
Current liabilities
Accounts payable	15,747	14,001
Accrued expenses	16,348	19,443
Lease liabilities	7,647
Deferred revenue	35,299	37,294
Total current liabilities	75,041	70,738
Lease liabilities, net of current portion	33,943	33,969
Total liabilities	108,984	104,707
Commitments and contingencies
Stockholders' equity
Preferred stock, $0.01 par value: 10,000,000 authorized shares; -0- issued and outstanding shares at June 30, 2022 and December 31, 2021
Common stock, $0.01 par value: 200,000,000 authorized shares at June 30, 2022 and December 31, 2021; 59,684,420 issued and outstanding at June 30, 2022 and 59,355,558 issued and outstanding at December 31, 2021	598	595
Additional paid-in capital	1,044,172	1,017,523
Accumulated other comprehensive loss	(8,944)	(1,510)
Accumulated deficit	(293,485)	(283,104)
Total stockholders' equity	742,341	733,504
Total liabilities and stockholders' equity	$ 851,325	$ 838,211

Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2022	Dec. 31, 2021
Balance Sheets
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	59,684,420	59,355,558
Common stock, shares outstanding	59,684,420	59,355,558

Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Revenue
Collaborations, milestones, and royalties	$ 30,175	$ 67,447	$ 115,670	$ 101,412
Operating expenses
Research and development	47,084	49,497	94,839	90,908
General and administrative	11,091	8,863	22,364	17,090
Total operating expenses	58,175	58,360	117,203	107,998
Income (loss) from operations	(28,000)	9,087	(1,533)	(6,586)
Other income (expenses)
Interest income, net	717	147	1,371	362
Other expense, net	(147)	(6)	(244)	(17)
(Loss) gain on equity securities, net	(6,545)	43,020	(9,974)	56,002
Total other income (expense), net	(5,975)	43,161	(8,847)	56,347
Net income (loss)	(33,975)	52,248	(10,380)	49,761
Other comprehensive loss
Net unrealized loss on marketable debt securities	(1,823)	(112)	(7,435)	(90)
Comprehensive income (loss)	$ (35,798)	$ 52,136	$ (17,815)	$ 49,671
Net income (loss) per share attributable to common stockholders:
Basic net income (loss) per common share (in dollars per share)	$ (0.57)	$ 0.90	$ (0.17)	$ 0.86
Diluted net income (loss) per common share (in dollars per share)	$ (0.57)	$ 0.87	$ (0.17)	$ 0.82
Weighted average shares used to compute net income (loss) per share attributable to common stockholders:
Basic (in shares)	59,567,139	58,247,941	59,487,924	58,123,319
Diluted (in shares)	59,567,139	60,335,339	59,487,924	60,503,846

Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit	Total
Balance at Dec. 31, 2020	$ 580	$ 937,525	$ 74	$ (365,735)	$ 572,444
Balance (in shares) at Dec. 31, 2020	57,873,444
Increase (Decrease) in Stockholders' Equity
Issuance of common stock upon exercise of stock awards	$ 2	5,337			5,339
Issuance of common stock upon exercise of stock awards (in shares)	230,701
Issuance of restricted stock units	$ 1	(1)
Issuance of restricted stock units (in shares)	117,808
Comprehensive income (loss)			23	(2,487)	(2,464)
Stock-based compensation		8,293			8,293
Balance at Mar. 31, 2021	$ 583	951,154	97	(368,222)	583,612
Balance (in shares) at Mar. 31, 2021	58,221,953
Balance at Dec. 31, 2020	$ 580	937,525	74	(365,735)	572,444
Balance (in shares) at Dec. 31, 2020	57,873,444
Increase (Decrease) in Stockholders' Equity
Comprehensive income (loss)					49,671
Balance at Jun. 30, 2021	$ 584	962,343	(15)	(315,974)	646,938
Balance (in shares) at Jun. 30, 2021	58,315,485
Balance at Mar. 31, 2021	$ 583	951,154	97	(368,222)	583,612
Balance (in shares) at Mar. 31, 2021	58,221,953
Increase (Decrease) in Stockholders' Equity
Issuance of common stock upon exercise of stock awards	$ 1	902			903
Issuance of common stock upon exercise of stock awards (in shares)	52,790
Issuance of restricted stock units (in shares)	10,190
Issuance of common stock under the Employee Stock Purchase Plan		937			937
Issuance of common stock under the Employee Stock Purchase Plan (in shares)	30,552
Comprehensive income (loss)			(112)	52,248	52,136
Stock-based compensation		9,350			9,350
Balance at Jun. 30, 2021	$ 584	962,343	(15)	(315,974)	646,938
Balance (in shares) at Jun. 30, 2021	58,315,485
Balance at Dec. 31, 2021	$ 595	1,017,523	(1,510)	(283,104)	733,504
Balance (in shares) at Dec. 31, 2021	59,355,558
Increase (Decrease) in Stockholders' Equity
Issuance of common stock upon exercise of stock awards		731			731
Issuance of common stock upon exercise of stock awards (in shares)	36,500
Issuance of restricted stock units	$ 1	(1)
Issuance of restricted stock units (in shares)	137,134
Comprehensive income (loss)			(5,611)	23,594	17,983
Stock-based compensation		10,805			10,805
Balance at Mar. 31, 2022	$ 596	1,029,058	(7,121)	(259,510)	763,023
Balance (in shares) at Mar. 31, 2022	59,529,192
Balance at Dec. 31, 2021	$ 595	1,017,523	(1,510)	(283,104)	733,504
Balance (in shares) at Dec. 31, 2021	59,355,558
Increase (Decrease) in Stockholders' Equity
Comprehensive income (loss)					(17,815)
Balance at Jun. 30, 2022	$ 598	1,044,172	(8,944)	(293,485)	742,341
Balance (in shares) at Jun. 30, 2022	59,684,420
Balance at Mar. 31, 2022	$ 596	1,029,058	(7,121)	(259,510)	763,023
Balance (in shares) at Mar. 31, 2022	59,529,192
Increase (Decrease) in Stockholders' Equity
Issuance of common stock upon exercise of stock awards	$ 1	1,315			1,316
Issuance of common stock upon exercise of stock awards (in shares)	70,874
Issuance of restricted stock units (in shares)	15,774
Issuance of common stock under the Employee Stock Purchase Plan	$ 1	1,196			1,197
Issuance of common stock under the Employee Stock Purchase Plan (in shares)	68,580
Comprehensive income (loss)			(1,823)	(33,975)	(35,798)
Stock-based compensation		12,603			12,603
Balance at Jun. 30, 2022	$ 598	$ 1,044,172	$ (8,944)	$ (293,485)	$ 742,341
Balance (in shares) at Jun. 30, 2022	59,684,420

Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
Statements of Cash Flows - USD ($) $ in Thousands	Jun. 30, 2022	Jun. 30, 2021
Cash flows from operating activities
Net (loss) income	$ (10,380)	$ 49,761
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	4,402	3,391
Amortization of premium on marketable securities	968	1,711
Stock-based compensation	23,408	17,643
Abandonment of capitalized intangible assets	1,047	310
Equity received in connection with sale of financial assets		(3,300)
Change in fair value of equity securities	9,974	(37,701)
Impairment on equity securities	138
Loss (gain) on disposal of assets	125	(4)
Changes in operating assets and liabilities:
Accounts receivable and contract asset	12,100	8,618
Interest receivable from marketable debt securities	(448)	496
Prepaid expenses and other assets	4,183	(4,930)
Accounts payable	1,746	(1,842)
Accrued expenses	(3,095)	(275)
Lease liabilities and ROU assets	7,911	(83)
Deferred revenue	(1,995)	(73,415)
Net cash provided by (used in) operating activities	50,084	(39,620)
Cash flows from investing activities
Purchase of marketable securities	(206,148)	(231,459)
Proceeds from sale of property and equipment		4
Purchase of intangible assets	(3,197)	(1,324)
Purchase of property and equipment	(14,443)	(4,234)
Proceeds from maturities and sale of marketable securities	76,390	221,752
Net cash used in investing activities	(147,398)	(15,261)
Cash flows from financing activities
Proceeds from issuance of common stock upon exercise of stock awards	2,047	6,242
Proceeds from issuance of common stock from Employee Stock Purchase Plan	1,197	937
Net cash provided by financing activities	3,244	7,179
Net decrease in cash and cash equivalents	(94,070)	(47,702)
Cash and cash equivalents, beginning of period	143,480	163,544
Cash and cash equivalents, end of period	49,410	115,842
Cash paid for:
Interest	9	9
Supplemental disclosures of non-cash investing activities
Unrealized loss on marketable securities	$ (7,435)	$ (90)

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2022

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

1. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited interim financial statements for Xencor, Inc. (the Company, Xencor, we or us) have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information. The financial statements include all adjustments (consisting only of normal recurring adjustments) that the management of the Company believes are necessary for a fair presentation of the periods presented. The preparation of interim financial statements requires the use of management’s estimates and assumptions that affect reported amounts of assets and liabilities at the date of the interim financial statements and the reported revenues and expenditures during the reported periods. These interim financial results are not necessarily indicative of the results expected for the full fiscal year or for any subsequent interim period.

The accompanying unaudited interim financial statements and related notes should be read in conjunction with the audited financial statements and notes thereto included in the Company’s 2021 Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on February 24, 2022.

Use of Estimates

The preparation of interim financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, other comprehensive gain (loss) and the related disclosures. On an ongoing basis, management evaluates its estimates, including estimates related to its accrued clinical trial and manufacturing development expenses, stock-based compensation expense, evaluation of intangible assets, investments, leases and other assets for evidence of impairment, fair value measurements, and contingencies. Significant estimates in these interim financial statements include estimates made for royalty revenue, accrued research and development expenses, stock-based compensation expenses, intangible assets, incremental borrowing rate for right-of-use asset and lease liability, estimated standalone selling price of performance obligations, estimated time for completing delivery of performance obligations under certain arrangements, the likelihood of recognizing variable consideration, the carrying value of equity instruments without a readily determinable fair value, and recoverability of deferred tax assets.

Intangible Assets

The Company maintains definite-lived intangible assets related to certain capitalized costs of acquired licenses and third-party costs incurred in establishing and maintaining its intellectual property rights to its platform technologies and development candidates. These assets are amortized over their useful lives, which are estimated to be the remaining patent life or the contractual term of the license. The straight-line method is used to record amortization expense. The Company assesses its intangible assets for impairment if indicators are present or changes in circumstances suggest that impairment may exist. There was no impairment charge recorded for the three and six months ended June 30, 2022 and 2021.

The Company capitalizes certain in-process intangible assets that are then abandoned when they are no longer pursued or used in current research activities. We abandoned $0.7 million and $1.0 million of in-process intangible assets during the three and six months ended June 30, 2022, respectively. There was no material abandonment of in-process intangible assets during the three and six months ended June 30, 2021.

Marketable Debt and Equity Securities

The Company has an investment policy that includes guidelines on acceptable investment securities, minimum credit quality, maturity parameters, and concentration and diversification. The Company invests its excess cash primarily in marketable debt securities issued by investment grade institutions.

The Company considers its marketable debt securities to be available-for-sale because it is not more likely than not that the Company will be required to sell the securities before recovery of the amortized cost. These assets are carried at fair value and any impairment losses and recoveries related to the underlying issuer’s credit standing are recognized within other income (expense), while non-credit related impairment losses and recoveries are recognized within accumulated other comprehensive income (loss). There were no impairment losses or recoveries recorded for the three and six months ended June 30, 2022 and 2021. Accrued interest on marketable debt securities is included in the marketable securities’ carrying value. Each reporting period, the Company reviews its portfolio of marketable debt securities, using both quantitative and qualitative factors, to determine if each security’s fair value has declined below its amortized cost basis. During the three and six months ended June 30, 2022, the Company recorded an unrealized loss of $1.8 million and $7.4 million, respectively, in its portfolio of marketable debt securities. The unrealized loss is due to the changing interest rate environment and is not due to changes in the credit quality of the underlying securities. The unrealized loss is recorded in other comprehensive income (loss) for the three and six months ended June 30, 2022.

The Company receives equity securities in connection with certain licensing transactions with its partners. These investments in equity securities are carried at fair value with changes in fair value recognized each period and reported within other income (expense). For equity securities with a readily determinable fair value, the Company remeasures these equity investments at each reporting period until such time that the investment is sold or disposed. If the Company sells an investment, any realized gain or loss on the sale of the securities will be recognized within other income (expense) in the Statements of Comprehensive Income (Loss) in the period of sale.

The Company also has investments in equity securities without a readily determinable fair value, where the Company elects the measurement alternative to record the investment at its initial cost minus impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. During the three and six months ended June 30, 2022, the Company recorded an impairment charge of $0.1 million in connection with equity securities without a readily determinable fair value. There was no impairment charge recorded for the three and six months ended June 30, 2021.

Recent Accounting Pronouncements

Pronouncements Not Yet Effective

In June 2022, the Financial Accounting Standards Board (FASB) issued ASU No. 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, which is effective for fiscal years beginning on and after December 15, 2023, and interim periods within those fiscal years. The standard clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and is not considered in measuring fair value. The Company does not anticipate that the standard will have a significant impact on its financial statements.

There have been no other material changes to the significant accounting policies previously disclosed in the Company’s 2021 Annual Report on Form 10-K.

Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2022

Fair Value of Financial Instruments

Fair Value of Financial Instruments

2. Fair Value of Financial Instruments

Financial instruments included in the financial statements include cash and cash equivalents, marketable debt and equity securities, accounts receivable, accounts payable, and accrued expenses. Marketable debt securities, equity securities, and cash equivalents are carried at fair value. The fair value of the other financial instruments closely approximates their fair value due to their short-term maturities.

The Company accounts for recurring and non-recurring fair value measurements in accordance with FASB Accounting Standards Codification 820, Fair Value Measurements and Disclosures (ASC 820). ASC 820 defines fair value, establishes a fair value hierarchy for assets and liabilities measured at fair value, and requires expanded disclosure about fair value measurements. The ASC 820 hierarchy ranks the quality of reliable inputs, or assumptions, used in the determination of fair value and requires assets and liabilities carried at fair value to be classified and disclosed in one of the following three categories:

Level 1—Fair value is determined by using unadjusted quoted prices that are available in active markets for identical assets or liabilities.

Level 2—Fair value is determined by using inputs other than Level 1 quoted prices that are directly or indirectly observable. Inputs can include quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in markets that are not active. Related inputs can also include those used in valuation or other pricing models, such as interest rates and yield curves that can be corroborated by observable market data.

Level 3—Fair value is determined by inputs that are unobservable and not corroborated by market data. Use of these inputs involves significant and subjective judgments to be made by the reporting entity – e.g., determining an appropriate discount factor for illiquidity associated with a given security.

The Company measures the fair value of financial assets using the highest level of inputs that are reasonably available as of the measurement date. The assets recorded at fair value are classified within the hierarchy as follows for the periods reported (in thousands):


	June 30, 2022
	(unaudited)						December 31, 2021
	Total						Total
	Fair Value		Level 1		Level 2		Fair Value		Level 1		Level 2
Money Market Funds	$	20,320	$	20,320	$	—	$	123,892	$	123,892	$	—
Corporate Securities		175,841		—		175,841		144,418		—		144,418
Government Securities		400,195		—		400,195		309,814		—		309,814
	$	596,356	$	20,320	$	576,036	$	578,124	$	123,892	$	454,232

Our policy is to record transfers of assets between Level 1 and Level 2 at their fair values as of the end of each reporting period, consistent with the date of the determination of fair value. During the three and six months ended June 30, 2022 and 2021, there were no transfers between Level 1 and Level 2.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Net Income (Loss) Per Common Share

6 Months Ended

Jun. 30, 2022

Net Income (Loss) Per Common Share

Net Income (Loss) Per Common Share

3. Net Income (Loss) Per Common Share

Basic net income (loss) per common share is computed by dividing the net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period without consideration of common stock equivalents. Diluted net income (loss) per common share is computed by dividing the net income (loss) attributable to common stockholders by the weighted-average number of common stock equivalents outstanding for the period. Potentially dilutive securities consisting of stock issuable pursuant to outstanding options and restricted stock units (RSUs), and stock issuable pursuant to the 2013 Employee Stock Purchase Plan (ESPP) are not included in the per common share calculation in periods when the inclusion of such shares would have an anti-dilutive effect.

Basic and diluted net income (loss) per common share is computed as follows:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021

	(in thousands, except share and per share data)				(in thousands, except share and per share data)
Numerator:
Net income (loss) attributable to common stockholders	$	(33,975)	$	52,248	$	(10,380)	$	49,761
Denominator:
Weighted-average common shares outstanding used in computing basic net income (loss)		59,567,139		58,247,941		59,487,924		58,123,319
Effect of dilutive securities		—		2,087,398		—		2,380,527
Weighted-average common shares outstanding used in computing diluted net income (loss)		59,567,139		60,335,339		59,487,924		60,503,846
Basic net income (loss) per common share	$	(0.57)	$	0.90	$	(0.17)	$	0.86
Diluted net income (loss) per common share	$	(0.57)	$	0.87	$	(0.17)	$	0.82

For the three and six months ended June 30, 2022, we excluded all shares of stock issuable pursuant to outstanding options and RSUs from the calculation, because the inclusion of such shares would have had an anti-dilutive effect. For the three and six months ended June 30, 2021, we excluded 1,374,608 and 698,917 shares of stock issuable pursuant to outstanding options and RSUs from the calculation, respectively, because the inclusion of such shares would have had an anti-dilutive effect.

Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2022

Comprehensive Income (Loss)

Comprehensive Income (Loss)

4. Comprehensive Income (Loss)

Comprehensive income (loss) is comprised of net income (loss) and other comprehensive income (loss). For each of the three- and six-month periods ended June 30, 2022 and 2021, the only component of other comprehensive loss is net unrealized loss on marketable debt securities. There were no material reclassifications out of accumulated other comprehensive loss during each of the three- and six-month periods ended June 30, 2022 and 2021.

Marketable Debt and Equity Securities

6 Months Ended

Jun. 30, 2022

Marketable Debt and Equity Securities

Marketable Debt and Equity Securities

5. Marketable Debt and Equity Securities

The Company’s marketable debt securities held as of June 30, 2022 and December 31, 2021 are summarized below:


			Gross		Gross
	Amortized		Unrealized		Unrealized
June 30, 2022	Cost		Gains		Losses		Fair Value
(in thousands)
Money Market Funds	$	20,320	$	—	$	—	$	20,320
Corporate Securities		177,243		—		(1,402)		175,841
Government Securities		407,727		—		(7,532)		400,195
	$	605,290	$	—	$	(8,934)	$	596,356

Reported as
Cash and cash equivalents							$	20,320
Marketable securities								576,036
Total investments							$	596,356



			Gross		Gross
	Amortized		Unrealized		Unrealized
December 31, 2021	Cost		Gains		Losses		Fair Value
(in thousands)
Money Market Funds	$	123,892	$	—	$	—	$	123,892
Corporate Securities		144,584		—		(166)		144,418
Government Securities		311,148		1		(1,335)		309,814
	$	579,624	$	1	$	(1,501)	$	578,124

Reported as
Cash and cash equivalents							$	123,892
Marketable securities								454,232
Total investments							$	578,124

The maturities of the Company’s marketable debt securities as of June 30, 2022 are as follows:


	Amortized		Estimated
June 30, 2022	Cost		Fair Value
(in thousands)
Mature in one year or less	$	440,279	$	435,623
Mature within two years		144,691		140,413
	$	584,970	$	576,036

The unrealized losses on available-for-sale investments and their related fair values as of June 30, 2022 and December 31, 2021 are as follows:


	Less than 12 months				12 months or greater
			Unrealized				Unrealized
June 30, 2022	Fair value		losses		Fair value		losses
(in thousands)
Corporate Securities	$	88,927	$	(957)	$	15,899	$	(445)
Government Securities		275,536		(3,699)		124,515		(3,833)
	$	364,463	$	(4,656)	$	140,414	$	(4,278)



	Less than 12 months				12 months or greater
			Unrealized				Unrealized
December 31, 2021	Fair value		losses		Fair value		losses
(in thousands)
Corporate Securities	$	50,337	$	(51)	$	45,872	$	(115)
Government Securities		39,909		(54)		254,593		(1,281)
	$	90,246	$	(105)	$	300,465	$	(1,396)

The unrealized losses from the available-for-sale securities are primarily due to changes in the interest rate environment and not changes in the credit quality of the underlying securities in the portfolio.

The Company’s equity securities include securities with a readily determinable fair value. These investments are carried at fair value with changes in fair value recognized each period and reported within other income (expense). For the three and six months ended June 30, 2022, losses of $6.5 million and $10.0 million, respectively, were recorded in loss on equity securities under other income (expense) related to these securities. Equity securities with a readily determinable fair value, which are categorized as Level 1 in the fair value hierarchy under ASC 820, and their fair values (in thousands) as of June 30, 2022 and December 31, 2021 are as follows:


	Fair Value		Fair Value
	June 30, 2022		December 31, 2021
Astria Common Stock	$	1,920	$	3,449
INmune Common Stock		16,668		19,233
Viridian Common Stock		8,297		14,178
	$	26,885	$	36,860

The Company also has investments in equity securities without a readily determinable fair value. The Company elects the measurement alternative to record these investments at their initial cost and evaluate such investments at each reporting period for evidence of impairment, or observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Equity securities without a readily determinable fair value and their carrying values (in thousands) as of June 30, 2022 and December 31, 2021 are as follows:


	Carrying Value		Carrying Value
	June 30, 2022		December 31, 2021
Astria Preferred Stock	$	174	$	312
Zenas Preferred Stock		30,950		30,950
	$	31,124	$	31,262

In 2018, the Company received equity shares in Quellis Biosciences, Inc. (Quellis) in connection with a licensing transaction. In 2021, Quellis merged into Astria Therapeutics, Inc. (Astria) (formerly Catabasis Pharmaceuticals, Inc.), and the Company received common and preferred stock in Astria in exchange for its Quellis equity. The shares of Astria common stock have a readily determinable fair value. The adjustment in the fair value of the Astria common stock has been recorded in gain (loss) on equity securities for the three and six months ended June 30, 2022.

The Company records its investment in the shares of Astria preferred stock as an equity interest without a readily determinable fair value. The Company elected to record the shares of preferred stock at their initial cost and to review the carrying value for impairment or other changes in carrying value at each reporting period. During the three and six months ended June 30, 2022, the Company recorded an impairment charge of $0.1 million related to its investment in Astria’s preferred stock.

The Company currently holds 1,885,533 shares of common stock of INmune Bio, Inc. (INmune). The 1,885,533 shares of INmune common stock are classified as equity securities with a readily determinable fair value, and the adjustment in the fair value of the shares of INmune common stock has been recorded in gain (loss) on equity securities for the three and six months ended June 30, 2022.

The Company currently holds 717,144 shares of common stock of Viridian Therapeutics, Inc. (Viridian). The shares of Viridian common stock are classified as equity securities with a readily determinable fair value, and the adjustment in the fair value of the shares of Viridian common stock was recorded in gain (loss) on equity securities for the three and six months ended June 30, 2022.

The Company currently holds an equity interest in Zenas BioPharma Limited (Zenas), a private biotechnology company. The Company’s equity interests include preferred stock in Zenas and a warrant to acquire additional equity in Zenas in a subsequent financing. The Company also holds a convertible promissory note from Zenas. The Company elected the measurement alternative to carry the Zenas equity and the warrant at cost minus impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. During the three and six months ended June 30, 2022, there has not been any impairment or observable price changes related to this investment.

Unrealized (loss) gain recognized on equity securities during each of the three- and six-month periods ended June 30, 2022 and 2021, consist of the following:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Net (loss) gain recognized on equity securities	$	(6,545)	$	43,020	$	(9,974)	$	56,002
Less: net gain recognized on sale of equity securities		—		(18,300)		—		(18,301)
Unrealized (loss) gain recognized on equity securities	$	(6,545)	$	24,720	$	(9,974)	$	37,701

Stock-Based Compensation

6 Months Ended

Jun. 30, 2022

Stock-Based Compensation

Stock-Based Compensation

6. Stock Based Compensation

Our Board of Directors (the Board) and the requisite stockholders previously approved the 2010 Equity Incentive Plan (the 2010 Plan). In October 2013, the Board approved the 2013 Equity Incentive Plan (the 2013 Plan), and in November 2013, our stockholders approved the 2013 Plan, which became effective as of December 3, 2013. As of December 2, 2013, we suspended the 2010 Plan, and no additional awards may be granted under the 2010 Plan. Any shares of common stock covered by awards granted under the 2010 Plan that terminate after December 2, 2013 by expiration, forfeiture, cancellation, or other means without the issuance of such shares will be added to the 2013 Plan reserve.

As of June 30, 2022, the total number of shares of common stock available for issuance under the 2013 Plan is 15,063,313. Unless otherwise determined by the Board, beginning January 1, 2014, and continuing until the expiration of the 2013 Plan, the total number of shares of common stock available for issuance under the 2013 Plan will automatically increase annually on January 1 of each year by 4% of the total number of issued and outstanding shares of common stock as of December 31 of the immediately preceding year. Pursuant to approval by the Board, the total number of shares of common stock available for issuance under the 2013 Plan was increased by 2,374,222 shares on January 1, 2022. As of June 30, 2022, a total of 14,284,024 options have been granted under the 2013 Plan.

In November 2013, the Board and our stockholders approved the ESPP, which became effective as of December 5, 2013. As of June 30, 2022, the total number of shares of common stock available for issuance under the ESPP is 576,409. Unless otherwise determined by the Board, beginning on January 1, 2014, and continuing until the expiration of the ESPP, the total number of shares of common stock available for issuance under the ESPP will automatically increase annually on January 1 by the lesser of (i) 1% of the total number of issued and outstanding shares of common stock as of December 31 of the immediately preceding year, or (ii) 621,814 shares of common stock. Pursuant to approval by the Board, the total number of shares of common stock available for issuance under the ESPP was increased by 1%, which is 593,555 shares, on January 1, 2022. As of June 30, 2022, we have issued a total of 598,432 shares of common stock under the ESPP.

During the six months ended June 30, 2022, the Company awarded 763,830 RSUs to certain employees. The standard vesting of these awards is generally in three equal annual installments and is contingent on an employee’s continued service to the Company. The fair value of these awards is determined based on the intrinsic value of the stock on the date of grant and will be recognized as stock-based compensation expense over the requisite service period. As of June 30, 2022, a total of 1,888,317 RSUs have been granted under the 2013 Plan.

Total employee, director and non-employee stock-based compensation expense recognized for the three months ended June 30, 2022 and 2021 are as follows (in thousands):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
General and administrative	$	4,350	$	3,193	$	8,024	$	5,930
Research and development		8,253		6,157		15,384		11,713
	$	12,603	$	9,350	$	23,408	$	17,643

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Stock options	$	7,512	$	7,355	$	14,345	$	13,885
ESPP		290		253		591		501
RSUs		4,801		1,742		8,472		3,257
	$	12,603	$	9,350	$	23,408	$	17,643

The following table summarizes option activity under our stock plans and related information:


		Weighted		Weighted
		Average		Average
	Number of	Exercise		Remaining		Aggregate
	Shares Subject	Price		Contractual		Intrinsic
	to Outstanding	(Per		Term		Value
	Options	Share)		(in years)		(in thousands)
Balance at December 31, 2021	8,676,329	$	29.11		6.65	$	100,057
Options granted	1,883,951	$	29.73
Options forfeited	(284,373)	$	33.50
Options exercised	(107,374)	$	19.06
Balance at June 30, 2022	10,168,533	$	29.21		6.73	$	32,587
Exercisable	6,202,735	$	26.08		5.33	$	32,277

We calculate the intrinsic value as the difference between the exercise price of the options and the closing price of common stock of $27.37 per share as of June 30, 2022.

The weighted-average fair value of options granted during the six-month periods ended June 30, 2022 and 2021 were $15.64 and $22.54 per share, respectively. There were 1,488,576 options granted during the six-month period ended June 30, 2021. We estimated the fair value of each stock option using the Black-Scholes option-pricing model based on the date of grant of such stock option with the following weighted average assumptions for the three and six months ended June 30, 2022 and 2021:


	Options				Options
	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Expected term (years)	6.3		6.2		6.4		6.2
Expected volatility	53.1	%	55.3	%	53.0	%	55.6	%
Risk-free interest rate	3.13	%	1.03	%	1.93	%	1.02	%
Expected dividend yield	—	%	—	%	—	%	—	%


	ESPP				ESPP
	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Expected term (years)	0.5 - 2.0		0.5 - 2.0		0.5 - 2.0		0.5 - 2.0
Expected volatility	43.2 - 55.7	%	46.1 - 66.4	%	43.2 - 55.7	%	46.1 - 66.4	%
Risk-free interest rate	0.13 - 2.82	%	0.04 - 1.65	%	0.13 - 2.82	%	0.04 - 1.65	%
Expected dividend yield	—	%	—	%	—	%	—	%

As of June 30, 2022, the unamortized compensation expense related to unvested stock options was $66.5 million. The remaining unamortized compensation expense will be recognized over the next 2.7 years. As of June 30, 2022, the unamortized compensation expense under our ESPP was $1.8 million. The remaining unamortized expense will be recognized over the next 1.4 years.

The following table summarizes the RSU activity for the six-month period ended June 30, 2022:


		Weighted
	Restricted	Average Grant
	Stock	Date Fair Value
	Units	(Per unit)

Unvested RSUs at December 31, 2021	826,148	$	37.79
Granted	763,830		29.71
Vested	(152,908)		37.82
Forfeited	(60,950)		34.81
Unvested RSUs at June 30, 2022	1,376,120	$	33.43

As of June 30, 2022, the unamortized compensation expense related to unvested RSUs was $36.9 million. The remaining unamortized expense will be recognized over the next 2.2 years.

Leases

6 Months Ended

Jun. 30, 2022

Leases

Leases

7. Leases

The Company leases office and laboratory space in Monrovia, California under a lease that expires in December 2025 with an option to renew for an additional five years at then market rates. The Company has assessed that it is unlikely to exercise the option to extend the lease term. In July 2017, under a separate agreement, the Company entered into a lease for additional space in the same building with a lease that continues through September 2022. The lease contained an option to renew for additional lease term and the option period has lapsed.

In June 2021, the Company entered into an Agreement of Lease (Lease Agreement) for laboratory and office space in Pasadena, California, which will expire in July 2035. The Lease Agreement provides for two separate phases of lease and occupancy. The first phase commences on August 1, 2022 and provides the Company with an improvement allowance up to $17.0 million. The second phase of the lease agreement will commence no later than September 30, 2026 and includes an additional improvement allowance up to $3.3 million.

The Company leases additional office space in San Diego, California through August 2022. In May 2022, the Company extended the term of the lease through December 2023. For the three and six months ended June 30, 2022, ROU assets obtained in exchange for new operating lease liabilities are $1.5 million.

The Company also leases additional office space in Monrovia, California under a lease that extends through January 2023, with an option to extend for an additional two years. The Company has assessed that it is unlikely to exercise the option to extend the lease term.

The Company’s lease agreements do not contain any residual value guarantees or restrictive covenants.

The following table reconciles the undiscounted cash flows for the operating leases at June 30, 2022 to the operating lease liabilities recorded on the balance sheet (in thousands):


Years ending December 31,
For the remainder of 2022	$	1,064
2023		6,804
2024		5,713
2025		5,817
2026		5,279
2027		5,433
Thereafter		46,685
Total undiscounted lease payments		76,795
Less: Tenant allowance		(10,817)
Less: Imputed interest		(24,388)
Present value of lease payments	$	41,590

Lease liabilities - short-term	$	7,647
Lease liabilities - long-term		33,943
Total lease liabilities	$	41,590

The following table summarizes lease costs and cash payments for the three and six months ended June 30, 2022 and 2021 (in thousands):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021

Operating lease cost	$	1,574	$	614	$	3,136	$	1,228
Variable lease cost		33		18		132		28
Total lease costs	$	1,607	$	632	$	3,268	$	1,256

Cash paid for amounts included in
the measurement of lease liabilities	$	665	$	548	$	1,349	$	1,047

As of June 30, 2022, the weighted-average remaining lease term for operating leases is 12.0 years, and the weighted-average discount rate for operating leases is 6.0%. As of June 30, 2021, the weighted-average remaining lease term for operating leases is 3.1 years, and the weighted-average discount rate for operating leases is 4.0%.

Commitments and Contingencies

6 Months Ended

Jun. 30, 2022

Commitments and Contingencies

Commitments and Contingencies

8. Commitments and Contingencies

From time to time, the Company may be subject to various litigation and related matters arising in the ordinary course of business. The Company does not believe it is currently subject to any material matters where there is at least a reasonable possibility that a material loss may be incurred.

The Company is obligated to make future payments to third parties under in license agreements, including sublicense fees, royalties, and payments that become due and payable on the achievement of certain development and commercialization milestones. As the amount and timing of sublicense fees and the achievement and timing of these milestones are not probable and estimable, such commitments have not been included on the Company’s balance sheet. The Company has also entered into agreements with third-party vendors that will require us to make future payments upon the delivery of goods and services in future periods.

Collaboration and Licensing Agreements

6 Months Ended

Jun. 30, 2022

Collaboration and Licensing Agreements

Collaboration and Licensing Agreements

9. Collaboration and Licensing Agreements

The following is a summary description of the material revenue arrangements, including arrangements that generated revenue in the three and six months ended June 30, 2022 and 2021.

Alexion Pharmaceuticals, Inc.

In January 2013, the Company entered into an Option and License Agreement (the Alexion Agreement) with Alexion Pharmaceuticals, Inc. (Alexion). Under the terms of the Alexion Agreement, the Company granted to Alexion an exclusive research license, with limited sublicensing rights, to make and use the Company’s Xtend technology to evaluate and advance compounds. Alexion exercised its rights to one target program, ALXN1210, which is now marketed as Ultomiris®.

The Company is eligible to receive a contractual milestone for certain commercial achievements and is also entitled to receive royalties based on a percentage of net sales of Ultomiris sold by Alexion, its affiliates or its sublicensees, which percentage is in the low single digits. Alexion’s royalty obligations continue on a product-by-product and country-by-country basis until the expiration of the last-to-expire valid claim in a licensed patent covering the applicable product in such country.

Under ASC 606, Revenue from Contracts with Customers, the Company recognizes revenue for sales-based royalties upon the subsequent sale of the product. The Company recognized $6.7 million and $5.2 million of royalty revenue under this arrangement for the three months ended June 30, 2022 and 2021, respectively. The Company recognized $12.9 million and $10.5 million of royalty revenue under this arrangement for the six months ended June 30, 2022 and 2021, respectively. As of June 30, 2022, there is a receivable of $12.0 million related to royalties due under the arrangement, and there is no deferred revenue related to this agreement.

Amgen Inc.

In September 2015, the Company entered into a research and license agreement (the Amgen Agreement) with Amgen Inc. (Amgen) to develop and commercialize bispecific antibody product candidates using the Company’s proprietary XmAb bispecific Fc technology. Under the Amgen Agreement, Amgen applied our bispecific Fc technology to create AMG 509, a STEAP1 x CD3 XmAb 2+1 bispecific antibody, which is currently being developed by Amgen in a Phase 1 study.

No revenue was recognized under the Amgen Agreement during the three and six months ended June 30, 2022 or 2021, and there is no deferred revenue related to the arrangement.

Astellas Pharma Inc.

Effective March 29, 2019, the Company entered into a Research and License Agreement (the Astellas Agreement) with Astellas Pharma Inc. (Astellas).

Pursuant to the Astellas Agreement, the Company applied its bispecific Fc technology to research antibodies provided by Astellas to generate bispecific antibody candidates and returned the candidates to Astellas for further development and commercialization.

Under the Astellas Agreement, Astellas developed ASP2138, a CLDN18.2 x CD3 bispecific antibody, which is currently being developed by Astellas in a Phase 1 study.

At March 31, 2022, the Company recorded a contract asset of $5.0 million related to a future development milestone under the Astellas Agreement. In June 2022, Astellas achieved the development milestone, and the Company recorded a receivable of $5.0 million.

The Company recognized $5.0 million of revenue for the six months ended June 30, 2022; no revenue was recognized related to the arrangement for the three months ended June 30, 2022, and 2021, or the six months ended June 30, 2021. As of June 30, 2022, there is a receivable of $5.0 million, and there is no deferred revenue related to the arrangement.

Astria Therapeutics, Inc.

In May 2018, the Company entered into an agreement with Quellis, pursuant to which the Company provided Quellis a non-exclusive license to its Xtend Fc technology to apply to an identified antibody. Quellis is responsible for all development and commercialization activities. The Company received an equity interest in Quellis and is eligible to receive development, regulatory and sales milestones, and royalties in the mid-single digit percentage range on net sales of approved products.

In January 2021, Quellis merged into Astria (formerly Catabasis), and the Company received common stock and preferred stock of Astria in exchange for its equity in Quellis. The Company recognized an increase in the fair value of its equity interest for the exchange of shares, which was recorded as unrealized gain for the three months ended June 30, 2021. The Astria preferred stock is carried at its original cost and is reviewed for impairment or other changes at each reporting period.

The Company recognized an unrealized loss of $2.4 million and $1.5 million related to its equity interest in Astria for the three and six months ended June 30, 2022, respectively. The Company recognized an unrealized loss of $3.7 million and unrealized gain of $9.2 million related to its equity interest in Astria for the three and six months ended June 30, 2021, respectively. There is no deferred revenue as of June 30, 2022 related to this agreement.

Genentech, Inc., and F. Hoffmann-La Roche Ltd

In February 2019, the Company entered into a collaboration and license agreement (the Genentech Agreement) with Genentech, Inc. and F. Hoffmann-La Roche Ltd (collectively, Genentech) for the development and commercialization of novel IL-15 collaboration products (Collaboration Products), including XmAb306 (also named RG6323), the Company’s IL-15/IL-15Ra candidate.

Pursuant to the Genentech Agreement, XmAb306 is designated as a development program and all costs incurred for developing XmAb306 from March 8, 2019, the effective date of the Genentech Agreement, are being shared with Genentech under the initial cost-sharing percentage of 45%.

Pursuant to the Genentech Agreement, the Company and Genentech conducted joint research activities for a two-year period to identify and discover additional IL-15 candidates developed from the Company’s cytokine and bispecific technologies. The two-year research term expired in March 2021. The Company is eligible for clinical milestone payments for new Collaboration Products identified from the research efforts.

The Company did not recognize revenue related to the Genentech Agreement for the three and six months ended June 30, 2022. For the three and six months ended June 30, 2021, the Company recognized $2.3 million and $2.5 million of revenue, respectively. As of June 30, 2022, there is a $3.5 million payable related to cost-sharing development activities during the second quarter of 2022 for development studies being conducted under the Genentech Agreement. There is no deferred revenue as of June 30, 2022, as obligations to perform research activities have expired.

INmune Bio, Inc.

In October 2017, the Company entered into a License Agreement (the INmune Agreement) with INmune. Under the terms of the INmune Agreement, the Company provided INmune with an exclusive license to certain rights to a proprietary protein, XPro1595. In connection with the agreement, the Company received shares of INmune common stock.

During the three months ended June 30, 2021, the Company determined that it should no longer record its investment in INmune under the equity method and recorded its investment in INmune pursuant to ASC 321.

For the three and six months ended June 30, 2022, the Company recorded $0.8 million of unrealized gain and $2.6 million of unrealized loss, respectively, related to its investment in INmune. For the three and six months ended June 30, 2021, the Company recognized an unrealized gain of $27.9 million and a realized gain of $18.3 million.

Janssen Biotech, Inc.

Janssen Agreement

In November 2020, the Company entered into a Collaboration and License Agreement (the Janssen Agreement) with Janssen Biotech, Inc. (Janssen) pursuant to which the Company and Janssen conducted research and development activities to discover novel CD28 bispecific antibodies for the treatment of prostate cancer with Janssen maintaining exclusive worldwide rights to develop and commercialize licensed products identified from the research activities.

Under the Janssen Agreement, the Company conducted research activities and applied its bispecific Fc technology to antibodies targeting prostate cancer provided by Janssen. Upon completion of the research activities Janssen had a candidate selection option to advance an identified candidate for development and commercialization. In November 2021, the Company completed its performance obligations under the research activities and delivered CD28 bispecific antibodies to Janssen, and Janssen exercised its candidate selection option to select a bispecific CD28 antibody for further development. Janssen will assume full responsibility for development and commercialization of the CD28 bispecific antibody candidate.

Second Janssen Agreement

On October 1, 2021, the Company entered into a second Collaboration and License Agreement (the Second Janssen Agreement) with Janssen pursuant to which the Company granted Janssen an exclusive worldwide license to develop, manufacture, and commercialize plamotamab, the Company’s CD20 x CD3 development candidate, and pursuant to which Xencor and Janssen will conduct research and development activities to discover novel CD28 bispecific antibodies. The parties will conduct joint research activities for up to a two-year period to discover XmAb bispecific antibodies against CD28 and undisclosed B cell tumor-targets with Janssen receiving exclusive worldwide rights, subject to certain Xencor opt-in rights, to develop, manufacture and commercialize pharmaceutical products that contain one or more of such discovered antibodies (CD28 Licensed Antibodies). The Agreement became effective on November 5, 2021.

Pursuant to the Second Janssen Agreement, the Company received an upfront payment of $100.0 million and is eligible to receive up to $1,187.5 million in milestones which include $289.4 million in development milestones, $378.1 million in regulatory milestones and $520.0 million in sales milestones. Under the terms of the Stock Purchase Agreement, Johnson & Johnson Innovation, JJDC, Inc. (JJDC), agreed to purchase $25.0 million of newly issued unregistered shares of the Company’s common stock, priced at a 30-day volume-weighted average price of $33.4197 per share as of October 1, 2021. The Company issued JJDC 748,062 shares of its common stock which had a fair market value of $28.9 million when the shares were transferred.

The Company will collaborate with Janssen on further clinical development of plamotamab with Janssen and share development costs with Janssen paying 80% and the Company paying 20% of certain development costs.

The Company is generally responsible for conducting research activities under the Second Janssen Agreement, and Janssen is generally responsible for all development, manufacturing, and commercialization activities for CD28 Licensed Antibodies that are advanced.

There is a receivable of $4.6 million as of June 30, 2022, related to cost-sharing activities for development of plamotamab under the Second Janssen Agreement. The Company recognized $0.2 million and $16.2 million of revenue related to the two Janssen agreements for the three months ended June 30, 2022 and 2021, respectively. The Company recognized $2.0 million and $30.8 million of revenue related to the two Janssen agreements for the six months ended June 30, 2022, and 2021, respectively, and there is $35.3 million in deferred revenue as of June 30, 2022 related to the Second Janssen Agreement.

MorphoSys AG

In June 2010, the Company entered into a Collaboration and License Agreement with MorphoSys AG (MorphoSys), which was subsequently amended. Under the agreement, we granted MorphoSys an exclusive worldwide license to the Company’s patents and know-how to research, develop and commercialize the XmAb5574 product candidate (subsequently renamed MOR208 and tafasitamab) with the right to sublicense under certain conditions. If certain developmental, regulatory and sales milestones are achieved, the Company is eligible to receive future milestone payments and royalties.

The Company recognized $1.2 million of royalty revenue during each of the three months ended June 30, 2022 and 2021. The Company recognized $3.5 million and $15.1 million of revenue during the six months ended June 30, 2022 and 2021, respectively. As of June 30, 2022, there is a receivable of $1.8 million related to estimated royalties due under the arrangement. As of June 30, 2022, there is no deferred revenue related to this agreement.

Novartis Institute for Biomedical Research, Inc.

In June 2016, the Company entered into a Collaboration and License Agreement (the Novartis Agreement) with Novartis Institutes for BioMedical Research, Inc. (Novartis) to develop and commercialize bispecific and other Fc engineered antibody drug candidates using the Company’s proprietary XmAb technologies and drug candidates.

Pursuant to the Novartis Agreement, the Company and Novartis were co-developing vibecotamab worldwide and sharing development costs. In August 2021, Novartis notified the Company it was terminating its rights with respect to the vibecotamab program, which became effective in February 2022. Under the Novartis Agreement, Novartis is responsible for its share of vibecotamab development costs through February 2023.

In June 2021, Novartis selected an Fc candidate and received a non-exclusive license to the Company’s Fc technology. Novartis will assume full responsibility for development and commercialization of the licensed Fc product candidate. The Company is eligible to receive development, clinical, and sales milestones and royalties on net sales of approved products for the licensed Fc candidate.

No revenue was recognized during the three and six months ended June 30, 2022 from the Novartis Agreement. The Company recognized $41.1 million of revenue during the three and six months ended June 30, 2021. As of June 30, 2022, there is a receivable of $0.8 million related to cost-sharing of development activities for the second quarter of 2022 for the vibecotamab program, and there is no deferred revenue as of June 30, 2022.

Vir Biotechnology, Inc.

In the third quarter of 2019, the Company entered into a Patent License Agreement (the Vir Agreement) with Vir Biotechnology, Inc. (Vir) pursuant to which the Company provided a non-exclusive license to its Xtend technology for up to two targets.

In March 2020, the Company entered into a second Patent License Agreement (the Second Vir Agreement) with Vir pursuant to which the Company provided a non-exclusive license to its Xtend technology to extend the half-life of two novel antibodies that Vir is investigating as potential treatments for patients with COVID-19. Under the terms of the Second Vir Agreement, Vir is responsible for all research, development, regulatory and commercial activities for the antibodies, and the Company is eligible to receive royalties on the net sales of approved products in the mid-single digit percentage range. In May 2021, the FDA granted emergency use authorization (EUA) to Vir’s COVID-19 antibody, sotrovimab (VIR-7831), for the treatment of mild-to-moderate COVID-19 in high-risk adults and patients.

In February 2021, the Company entered into the Vir Amendment No. 1 to the Vir Agreement and the Vir Amendment No. 1 to the Second Vir Agreement (collectively, the Vir Amendments), in each case, pursuant to which the Company provided a non-exclusive license to additional Fc technology for the targets previously identified in the Vir Agreement and the Second Vir Agreement, respectively. If Vir incorporates additional Fc technologies in the identified targets, the Company is eligible to receive additional royalties on net sales of approved products from low to mid-single digit range.

The Company recognized $22.1 million and $92.3 million of royalty revenue for the three and six months ended June 30, 2022, respectively. The Company recognized $0.9 million of royalty revenue and $0.5 million of milestone revenue for the three and six months ended June 30, 2021, respectively. As of June 30, 2022, there is a receivable of $22.1 million related to estimated royalty due under this agreement, and there is no deferred revenue related to this agreement.

Viridian Therapeutics, Inc.

In December 2020, the Company entered into a Technology License Agreement (Viridian Agreement) with Viridian, pursuant to which the Company provided Viridian a non-exclusive license to its Xtend Fc technology and an exclusive license to apply its Xtend Fc technology to antibodies targeting IGF-1R. Viridian is responsible for all development and commercialization activities. The Company received an upfront payment and is eligible to receive development, regulatory and sales milestones, and royalties on net sales in the mid-single digit percentage range.

In December 2021, the Company entered into a second Technology License Agreement (Second Viridian Agreement) with Viridian for a non-exclusive license to certain antibody libraries developed by the Company. Under the Second Viridian Agreement, Viridian received a one-year research license to review the antibodies and the right to select up to three antibodies for further development. Viridian is responsible for all further development of the selected antibodies. The Company received an upfront payment and is eligible to receive development, regulatory and sales milestones, in addition to royalties on net sales of approved products under the Second Viridian Agreement.

In connection with the Viridian Agreement and the Second Viridian Agreement, the Company received shares of Viridian common stock.

The Company reported unrealized loss in other income of $5.0 million and $5.9 million for the three and six months ended June 30, 2022 related to the shares of Viridian common stock. The Company reported unrealized gain in other income of $0.5 million and $0.6 million for the three and six months ended June 30, 2021 related to the Viridian common stock. The Company did not recognize revenue for the three and six months ended June 30, 2022 or 2021. There is no deferred revenue as of June 30, 2022 related to this agreement.

Zenas BioPharma Limited

In November 2020, the Company entered into a License Agreement (the Zenas Agreement) with Zenas, pursuant to which the Company granted Zenas exclusive, worldwide rights to develop and commercialize three preclinical-stage Fc-engineered drug candidates: XmAb6755, XPro9523, and XmAb10171. Under the Zenas Agreement, Zenas will be responsible for all further development and commercialization activities for the drug candidates. The Company received a 15% equity interest in Zenas with a fair value of $16.1 million and is eligible to receive royalties on net sales of approved products in the mid-single digit to mid-teen percentage range.

The equity in Zenas is recorded at the fair value as of the date of the Zenas Agreement and is reviewed each reporting period for impairment or other evidence of change in value.

In November 2021, the Company entered into a second License Agreement (Second Zenas Agreement) with Zenas, in which we licensed the exclusive worldwide rights to develop and commercialize the Company’s obexelimab (XmAb5871) drug candidate. Under the Second Zenas Agreement, Zenas will be responsible for all further development and commercialization activities for obexelimab. The Company received a warrant to acquire additional equity in Zenas and is eligible to receive development, regulatory and sales milestones, and royalties on net sales of approved products in the mid-single digit to mid-teen percentage range.

The warrant in Zenas is recorded at its fair value as of the date of the Second Zenas Agreement and is reviewed each reporting period for impairment or other evidence of change in value.

The Company did not record an impairment or change in the value of the Zenas equity or the warrant in Zenas in the three and six months ended June 30, 2022 or 2021. The Company did not recognize any revenue related to the Zenas Agreement for the three and six months ended June 30, 2022 or 2021, and there is no deferred revenue related to this agreement.

Revenue earned

The revenues recorded for the three and six months ended June 30, 2022 and 2021 were earned principally from the following licensees (in millions):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021

Alexion	$	6.7	$	5.2	$	12.9	$	10.5
Astellas		—		—		5.0		—
Genentech		—		2.3		—		2.5
Janssen		0.2		16.2		2.0		30.8
MorphoSys		1.2		1.2		3.5		15.1
Novartis		—		41.1		—		41.1
Vir		22.1		1.4		92.3		1.4
Total	$	30.2	$	67.4	$	115.7	$	101.4

The table below summarizes the disaggregation of revenue recorded for the three and six months ended June 30, 2022 and 2021 (in millions):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021

Research collaboration	$	0.2	$	58.6	$	2.0	$	73.4
Milestone		—		1.5		5.0		14.0
Royalties		30.0		7.3		108.7		14.0
Total	$	30.2	$	67.4	$	115.7	$	101.4

Remaining Performance Obligations and Deferred Revenue

The Company’s remaining performance obligation as of June 30, 2022 is conducting research activities pursuant to research plans under the Second Janssen Agreement. The Company’s obligation to perform research services under the Genentech and the Novartis Agreements ended upon expiration of the respective research terms for each agreement in the second quarter of 2021. As of June 30, 2022 and 2021, the Company has deferred revenue of $35.3 million and $19.2 million, respectively. All deferred revenue as of June 30, 2022 is classified as current liabilities as the Company’s obligations to perform services are due on demand when requested by Janssen under the Second Janssen Agreement.

Income Taxes

6 Months Ended

Jun. 30, 2022

Income Taxes

Income Taxes

10. Income taxes

There was no provision for income taxes for the three and six months ended June 30, 2022 or 2021. Beginning in 2022, the Tax Cuts and Jobs Act (TCJA) requires taxpayers to capitalize certain research and development costs and amortize them over five or fifteen years pursuant to Internal Revenue Code Section 174. Previously, such costs could be deducted in the period they were incurred. This provision may increase our taxable income for the tax year ended December 31, 2022 and subsequent years, and result in additional cash payments for our federal income taxes. As of June 30, 2022, the Company’s deferred income tax assets, consisting primarily of net operating loss and tax credit carryforwards, have been fully offset by a valuation allowance.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI https://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Summary of Significant Accounting Policies (Polices)	6 Months Ended
Summary of Significant Accounting Policies (Polices)	Jun. 30, 2022
Summary of Significant Accounting Policies
Basis of Presentation	Basis of Presentation The accompanying unaudited interim financial statements for Xencor, Inc. (the Company, Xencor, we or us) have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information. The financial statements include all adjustments (consisting only of normal recurring adjustments) that the management of the Company believes are necessary for a fair presentation of the periods presented. The preparation of interim financial statements requires the use of management’s estimates and assumptions that affect reported amounts of assets and liabilities at the date of the interim financial statements and the reported revenues and expenditures during the reported periods. These interim financial results are not necessarily indicative of the results expected for the full fiscal year or for any subsequent interim period. The accompanying unaudited interim financial statements and related notes should be read in conjunction with the audited financial statements and notes thereto included in the Company’s 2021 Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on February 24, 2022.
Use of Estimates	Use of Estimates The preparation of interim financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, other comprehensive gain (loss) and the related disclosures. On an ongoing basis, management evaluates its estimates, including estimates related to its accrued clinical trial and manufacturing development expenses, stock-based compensation expense, evaluation of intangible assets, investments, leases and other assets for evidence of impairment, fair value measurements, and contingencies. Significant estimates in these interim financial statements include estimates made for royalty revenue, accrued research and development expenses, stock-based compensation expenses, intangible assets, incremental borrowing rate for right-of-use asset and lease liability, estimated standalone selling price of performance obligations, estimated time for completing delivery of performance obligations under certain arrangements, the likelihood of recognizing variable consideration, the carrying value of equity instruments without a readily determinable fair value, and recoverability of deferred tax assets.
Intangible Assets	Intangible Assets The Company maintains definite-lived intangible assets related to certain capitalized costs of acquired licenses and third-party costs incurred in establishing and maintaining its intellectual property rights to its platform technologies and development candidates. These assets are amortized over their useful lives, which are estimated to be the remaining patent life or the contractual term of the license. The straight-line method is used to record amortization expense. The Company assesses its intangible assets for impairment if indicators are present or changes in circumstances suggest that impairment may exist. There was no impairment charge recorded for the three and six months ended June 30, 2022 and 2021. The Company capitalizes certain in-process intangible assets that are then abandoned when they are no longer pursued or used in current research activities. We abandoned $0.7 million and $1.0 million of in-process intangible assets during the three and six months ended June 30, 2022, respectively. There was no material abandonment of in-process intangible assets during the three and six months ended June 30, 2021.
Marketable Debt and Equity Securities	Marketable Debt and Equity Securities The Company has an investment policy that includes guidelines on acceptable investment securities, minimum credit quality, maturity parameters, and concentration and diversification. The Company invests its excess cash primarily in marketable debt securities issued by investment grade institutions. The Company considers its marketable debt securities to be available-for-sale because it is not more likely than not that the Company will be required to sell the securities before recovery of the amortized cost. These assets are carried at fair value and any impairment losses and recoveries related to the underlying issuer’s credit standing are recognized within other income (expense), while non-credit related impairment losses and recoveries are recognized within accumulated other comprehensive income (loss). There were no impairment losses or recoveries recorded for the three and six months ended June 30, 2022 and 2021. Accrued interest on marketable debt securities is included in the marketable securities’ carrying value. Each reporting period, the Company reviews its portfolio of marketable debt securities, using both quantitative and qualitative factors, to determine if each security’s fair value has declined below its amortized cost basis. During the three and six months ended June 30, 2022, the Company recorded an unrealized loss of $1.8 million and $7.4 million, respectively, in its portfolio of marketable debt securities. The unrealized loss is due to the changing interest rate environment and is not due to changes in the credit quality of the underlying securities. The unrealized loss is recorded in other comprehensive income (loss) for the three and six months ended June 30, 2022. The Company receives equity securities in connection with certain licensing transactions with its partners. These investments in equity securities are carried at fair value with changes in fair value recognized each period and reported within other income (expense). For equity securities with a readily determinable fair value, the Company remeasures these equity investments at each reporting period until such time that the investment is sold or disposed. If the Company sells an investment, any realized gain or loss on the sale of the securities will be recognized within other income (expense) in the Statements of Comprehensive Income (Loss) in the period of sale. The Company also has investments in equity securities without a readily determinable fair value, where the Company elects the measurement alternative to record the investment at its initial cost minus impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. During the three and six months ended June 30, 2022, the Company recorded an impairment charge of $0.1 million in connection with equity securities without a readily determinable fair value. There was no impairment charge recorded for the three and six months ended June 30, 2021.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Pronouncements Not Yet Effective In June 2022, the Financial Accounting Standards Board (FASB) issued ASU No. 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, which is effective for fiscal years beginning on and after December 15, 2023, and interim periods within those fiscal years. The standard clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and is not considered in measuring fair value. The Company does not anticipate that the standard will have a significant impact on its financial statements. There have been no other material changes to the significant accounting policies previously disclosed in the Company’s 2021 Annual Report on Form 10-K.

Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2022

Fair Value of Financial Instruments

Schedule of assets recorded at fair value


	June 30, 2022
	(unaudited)						December 31, 2021
	Total						Total
	Fair Value		Level 1		Level 2		Fair Value		Level 1		Level 2
Money Market Funds	$	20,320	$	20,320	$	—	$	123,892	$	123,892	$	—
Corporate Securities		175,841		—		175,841		144,418		—		144,418
Government Securities		400,195		—		400,195		309,814		—		309,814
	$	596,356	$	20,320	$	576,036	$	578,124	$	123,892	$	454,232

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

Net Income (Loss) Per Common Share (Tables)

6 Months Ended

Jun. 30, 2022

Net Income (Loss) Per Common Share

Schedule of basic and diluted net income (loss) per common share


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021

	(in thousands, except share and per share data)				(in thousands, except share and per share data)
Numerator:
Net income (loss) attributable to common stockholders	$	(33,975)	$	52,248	$	(10,380)	$	49,761
Denominator:
Weighted-average common shares outstanding used in computing basic net income (loss)		59,567,139		58,247,941		59,487,924		58,123,319
Effect of dilutive securities		—		2,087,398		—		2,380,527
Weighted-average common shares outstanding used in computing diluted net income (loss)		59,567,139		60,335,339		59,487,924		60,503,846
Basic net income (loss) per common share	$	(0.57)	$	0.90	$	(0.17)	$	0.86
Diluted net income (loss) per common share	$	(0.57)	$	0.87	$	(0.17)	$	0.82

Marketable Debt and Equity Securities (Tables)

6 Months Ended

Jun. 30, 2022

Marketable Debt and Equity Securities

Schedule of marketable securities


			Gross		Gross
	Amortized		Unrealized		Unrealized
June 30, 2022	Cost		Gains		Losses		Fair Value
(in thousands)
Money Market Funds	$	20,320	$	—	$	—	$	20,320
Corporate Securities		177,243		—		(1,402)		175,841
Government Securities		407,727		—		(7,532)		400,195
	$	605,290	$	—	$	(8,934)	$	596,356

Reported as
Cash and cash equivalents							$	20,320
Marketable securities								576,036
Total investments							$	596,356



			Gross		Gross
	Amortized		Unrealized		Unrealized
December 31, 2021	Cost		Gains		Losses		Fair Value
(in thousands)
Money Market Funds	$	123,892	$	—	$	—	$	123,892
Corporate Securities		144,584		—		(166)		144,418
Government Securities		311,148		1		(1,335)		309,814
	$	579,624	$	1	$	(1,501)	$	578,124

Reported as
Cash and cash equivalents							$	123,892
Marketable securities								454,232
Total investments							$	578,124

Schedule of maturities of marketable securities


	Amortized		Estimated
June 30, 2022	Cost		Fair Value
(in thousands)
Mature in one year or less	$	440,279	$	435,623
Mature within two years		144,691		140,413
	$	584,970	$	576,036

Schedule of unrealized losses on available-for-sale investments


	Less than 12 months				12 months or greater
			Unrealized				Unrealized
June 30, 2022	Fair value		losses		Fair value		losses
(in thousands)
Corporate Securities	$	88,927	$	(957)	$	15,899	$	(445)
Government Securities		275,536		(3,699)		124,515		(3,833)
	$	364,463	$	(4,656)	$	140,414	$	(4,278)



	Less than 12 months				12 months or greater
			Unrealized				Unrealized
December 31, 2021	Fair value		losses		Fair value		losses
(in thousands)
Corporate Securities	$	50,337	$	(51)	$	45,872	$	(115)
Government Securities		39,909		(54)		254,593		(1,281)
	$	90,246	$	(105)	$	300,465	$	(1,396)

Schedule of equity securities with readily determinable fair value


	Fair Value		Fair Value
	June 30, 2022		December 31, 2021
Astria Common Stock	$	1,920	$	3,449
INmune Common Stock		16,668		19,233
Viridian Common Stock		8,297		14,178
	$	26,885	$	36,860

Schedule of equity securities without readily determinable fair value


	Carrying Value		Carrying Value
	June 30, 2022		December 31, 2021
Astria Preferred Stock	$	174	$	312
Zenas Preferred Stock		30,950		30,950
	$	31,124	$	31,262

Schedule of net gains and losses


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Net (loss) gain recognized on equity securities	$	(6,545)	$	43,020	$	(9,974)	$	56,002
Less: net gain recognized on sale of equity securities		—		(18,300)		—		(18,301)
Unrealized (loss) gain recognized on equity securities	$	(6,545)	$	24,720	$	(9,974)	$	37,701

Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2022

Stock-Based Compensation

Schedule of total employee, director and non-employee stock-based compensation expense recognized


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
General and administrative	$	4,350	$	3,193	$	8,024	$	5,930
Research and development		8,253		6,157		15,384		11,713
	$	12,603	$	9,350	$	23,408	$	17,643

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Stock options	$	7,512	$	7,355	$	14,345	$	13,885
ESPP		290		253		591		501
RSUs		4,801		1,742		8,472		3,257
	$	12,603	$	9,350	$	23,408	$	17,643

Summary of stock option activity


		Weighted		Weighted
		Average		Average
	Number of	Exercise		Remaining		Aggregate
	Shares Subject	Price		Contractual		Intrinsic
	to Outstanding	(Per		Term		Value
	Options	Share)		(in years)		(in thousands)
Balance at December 31, 2021	8,676,329	$	29.11		6.65	$	100,057
Options granted	1,883,951	$	29.73
Options forfeited	(284,373)	$	33.50
Options exercised	(107,374)	$	19.06
Balance at June 30, 2022	10,168,533	$	29.21		6.73	$	32,587
Exercisable	6,202,735	$	26.08		5.33	$	32,277

Schedule of weighted average assumptions used for estimation of fair value of stock options


	Options				Options
	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Expected term (years)	6.3		6.2		6.4		6.2
Expected volatility	53.1	%	55.3	%	53.0	%	55.6	%
Risk-free interest rate	3.13	%	1.03	%	1.93	%	1.02	%
Expected dividend yield	—	%	—	%	—	%	—	%

Schedule of weighted average assumptions used for estimation of fair value of ESPP


	ESPP				ESPP
	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Expected term (years)	0.5 - 2.0		0.5 - 2.0		0.5 - 2.0		0.5 - 2.0
Expected volatility	43.2 - 55.7	%	46.1 - 66.4	%	43.2 - 55.7	%	46.1 - 66.4	%
Risk-free interest rate	0.13 - 2.82	%	0.04 - 1.65	%	0.13 - 2.82	%	0.04 - 1.65	%
Expected dividend yield	—	%	—	%	—	%	—	%

Summary of restricted stock unity activity


		Weighted
	Restricted	Average Grant
	Stock	Date Fair Value
	Units	(Per unit)

Unvested RSUs at December 31, 2021	826,148	$	37.79
Granted	763,830		29.71
Vested	(152,908)		37.82
Forfeited	(60,950)		34.81
Unvested RSUs at June 30, 2022	1,376,120	$	33.43

Leases (Tables)

6 Months Ended

Jun. 30, 2022

Leases

Schedule of operating lease liabilities maturities

The following table reconciles the undiscounted cash flows for the operating leases at June 30, 2022 to the operating lease liabilities recorded on the balance sheet (in thousands):


Years ending December 31,
For the remainder of 2022	$	1,064
2023		6,804
2024		5,713
2025		5,817
2026		5,279
2027		5,433
Thereafter		46,685
Total undiscounted lease payments		76,795
Less: Tenant allowance		(10,817)
Less: Imputed interest		(24,388)
Present value of lease payments	$	41,590

Lease liabilities - short-term	$	7,647
Lease liabilities - long-term		33,943
Total lease liabilities	$	41,590

Summary of lease costs and cash disclosures


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021

Operating lease cost	$	1,574	$	614	$	3,136	$	1,228
Variable lease cost		33		18		132		28
Total lease costs	$	1,607	$	632	$	3,268	$	1,256

Cash paid for amounts included in
the measurement of lease liabilities	$	665	$	548	$	1,349	$	1,047

Collaboration and Licensing Agreements (Tables)

6 Months Ended

Jun. 30, 2022

Collaboration and Licensing Agreements

Schedule of revenue by licensees

The revenues recorded for the three and six months ended June 30, 2022 and 2021 were earned principally from the following licensees (in millions):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021

Alexion	$	6.7	$	5.2	$	12.9	$	10.5
Astellas		—		—		5.0		—
Genentech		—		2.3		—		2.5
Janssen		0.2		16.2		2.0		30.8
MorphoSys		1.2		1.2		3.5		15.1
Novartis		—		41.1		—		41.1
Vir		22.1		1.4		92.3		1.4
Total	$	30.2	$	67.4	$	115.7	$	101.4

Schedule of disaggregation of revenue

The table below summarizes the disaggregation of revenue recorded for the three and six months ended June 30, 2022 and 2021 (in millions):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021

Research collaboration	$	0.2	$	58.6	$	2.0	$	73.4
Milestone		—		1.5		5.0		14.0
Royalties		30.0		7.3		108.7		14.0
Total	$	30.2	$	67.4	$	115.7	$	101.4

Summary of Significant Accounting Policies (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Patents, licenses, and other intangible assets
Abandonment costs			$ 1,047,000	$ 310,000
Impairment of intangible assets	$ 0	$ 0	0	0
Impairment loss or recoveries	0	0	0	0
Net unrealized loss on marketable debt securities	(1,823,000)	(112,000)	(7,435,000)	(90,000)
Impairment	100,000	$ 0	100,000	$ 0
In-process intangible assets
Patents, licenses, and other intangible assets
Abandonment costs	$ 700,000		$ 1,000,000.0

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Fair Value of Financial Instruments
Money Market Funds	$ 49,410	$ 143,480
Marketable Securities	576,036
Total Fair Value	596,356	578,124
Money Market Funds
Fair Value of Financial Instruments
Money Market Funds	20,320	123,892
Corporate Securities
Fair Value of Financial Instruments
Marketable Securities	175,841	144,418
Government Securities
Fair Value of Financial Instruments
Marketable Securities	400,195	309,814
Level 1
Fair Value of Financial Instruments
Total Fair Value	20,320	123,892
Level 1 \| Money Market Funds
Fair Value of Financial Instruments
Money Market Funds	20,320	123,892
Level 2
Fair Value of Financial Instruments
Total Fair Value	576,036	454,232
Level 2 \| Corporate Securities
Fair Value of Financial Instruments
Marketable Securities	175,841	144,418
Level 2 \| Government Securities
Fair Value of Financial Instruments
Marketable Securities	$ 400,195	$ 309,814

Fair Value of Financial Instruments - Level 3 (Details) - USD ($) $ in Millions	Jun. 30, 2022	Jun. 30, 2021
Fair Value of Financial Instruments
Impairment	$ (0.1)	$ 0.0

Net Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Net Income (Loss) Per Common Share
Net income (loss) attributable to common stockholders	$ (33,975)	$ 52,248	$ (10,380)	$ 49,761
Weighted-average common shares outstanding used in computing basic net income (loss)	59,567,139	58,247,941	59,487,924	58,123,319
Effect of dilutive securities		2,087,398		2,380,527
Weighted-average common shares outstanding used in computing diluted net income (loss)	59,567,139	60,335,339	59,487,924	60,503,846
Basic net income (loss) per common share (in dollars per share)	$ (0.57)	$ 0.90	$ (0.17)	$ 0.86
Diluted net income (loss) per common share (in dollars per share)	$ (0.57)	$ 0.87	$ (0.17)	$ 0.82

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
-Subparagraph (e)(4)
-URI https://asc.fasb.org/extlink&oid=126732423&loc=SL123482106-238011

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22583-107794

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22694-107794

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 10
-URI https://asc.fasb.org/extlink&oid=126958026&loc=d3e1448-109256

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 4
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22595-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22694-107794

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI https://asc.fasb.org/extlink&oid=126958026&loc=d3e1337-109256

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126732423&loc=SL123482106-238011

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI https://asc.fasb.org/extlink&oid=128363288&loc=d3e4984-109258

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(23))
-URI https://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 15
-URI https://asc.fasb.org/extlink&oid=128363288&loc=d3e3842-109258

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 7
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22644-107794

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=124432515&loc=d3e3550-109257

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(25))
-URI https://asc.fasb.org/extlink&oid=126953954&loc=SL114868664-224227

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI https://asc.fasb.org/extlink&oid=126958026&loc=d3e1252-109256

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=126958026&loc=SL5780133-109256

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(27))
-URI https://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI https://asc.fasb.org/extlink&oid=128363288&loc=d3e4984-109258

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 7
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22644-107794

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 15
-URI https://asc.fasb.org/extlink&oid=128363288&loc=d3e3842-109258

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI https://asc.fasb.org/extlink&oid=126958026&loc=d3e1252-109256

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 4
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22595-107794

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22583-107794

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=126958026&loc=SL5780133-109256

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126732423&loc=SL123482106-238011

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(27))
-URI https://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=124432515&loc=d3e3550-109257

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(23))
-URI https://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22694-107794

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI https://asc.fasb.org/extlink&oid=126958026&loc=d3e1337-109256

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
-Subparagraph (e)(4)
-URI https://asc.fasb.org/extlink&oid=126732423&loc=SL123482106-238011

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(25))
-URI https://asc.fasb.org/extlink&oid=126953954&loc=SL114868664-224227

+ Details

- Definition

Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities; of income (loss) available to common shareholders.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 4
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22595-107794

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 10
-URI https://asc.fasb.org/extlink&oid=126958026&loc=d3e1448-109256

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22694-107794

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 11
-URI https://asc.fasb.org/extlink&oid=126958026&loc=d3e1377-109256

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=124432515&loc=d3e3550-109257

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22694-107794

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126958026&loc=SL5780133-109256

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22583-107794

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

+ Details

Net Income (Loss) Per Common Share - Anti-dilutive securities (Details) - shares	3 Months Ended	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2021
Net Income (Loss) Per Common Share
Securities excluded in calculation of EPS	1,374,608	698,917

Marketable Debt and Equity Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021	Mar. 31, 2021
Schedule of Available-for-sale Securities
Cash and cash equivalents	$ 49,410	$ 143,480
Investments, amortized cost	605,290	579,624
Investments	596,356	578,124
Total amortized cost	584,970
Gross unrealized gains		1
Gross unrealized losses	(8,934)	(1,501)
Marketable Securities	576,036
Marketable securities
Schedule of Available-for-sale Securities
Marketable Securities	576,036		$ 454,232
Money Market Funds
Schedule of Available-for-sale Securities
Cash and cash equivalents	20,320	123,892
Cash and Cash Equivalents
Schedule of Available-for-sale Securities
Cash and cash equivalents	20,320	123,892
Corporate Securities
Schedule of Available-for-sale Securities
Total amortized cost	177,243	144,584
Gross unrealized losses	(1,402)	(166)
Marketable Securities	175,841	144,418
Government Securities
Schedule of Available-for-sale Securities
Total amortized cost	407,727	311,148
Gross unrealized gains		1
Gross unrealized losses	(7,532)	(1,335)
Marketable Securities	$ 400,195	$ 309,814

Marketable Debt and Equity Securities - Maturities (Details) $ in Thousands	Jun. 30, 2022 USD ($)
Amortized Cost
Maturing in one year or less	$ 440,279
Maturing within two years	144,691
Total amortized cost	584,970
Estimate Fair Value
Maturing in one year or less	435,623
Maturing within two years	140,413
Total estimated fair value	$ 576,036

Marketable Debt and Equity Securities - Unrealized losses (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Fair value
Fair value, less than 12 months	$ 364,463	$ 90,246
Fair value, 12 months or greater	140,414	300,465
Unrealized losses
Unrealized losses, Less than 12 months	(4,656)	(105)
Unrealized losses, 12 months or greater	(4,278)	(1,396)
Corporate Securities
Fair value
Fair value, less than 12 months	88,927	50,337
Fair value, 12 months or greater	15,899	45,872
Unrealized losses
Unrealized losses, Less than 12 months	(957)	(51)
Unrealized losses, 12 months or greater	(445)	(115)
Government Securities
Fair value
Fair value, less than 12 months	275,536	39,909
Fair value, 12 months or greater	124,515	254,593
Unrealized losses
Unrealized losses, Less than 12 months	(3,699)	(54)
Unrealized losses, 12 months or greater	$ (3,833)	$ (1,281)

Marketable Debt and Equity Securities - Equity Securities with Readily Determinable Fair Value (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Equity Securities
Equity Securities with Readily Determinable Fair Value	$ 26,885		$ 26,885		$ 36,860
Unrealized (loss) gain recognized on equity securities	(6,545)	$ 24,720	(9,974)	$ 37,701
Common Stock
Equity Securities
Equity Securities with Readily Determinable Fair Value	26,885		26,885		36,860
Astria/Catabasis \| Common Stock
Equity Securities
Equity Securities with Readily Determinable Fair Value	1,920		1,920		3,449
INmune \| Common Stock
Equity Securities
Equity Securities with Readily Determinable Fair Value	16,668		16,668		19,233
Viridian \| Common Stock
Equity Securities
Equity Securities with Readily Determinable Fair Value	$ 8,297		$ 8,297		$ 14,178

Marketable Debt and Equity Securities - Equity Securities without Readily Determinable Fair Value (Details) - Preferred Stock - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Equity securities without readily determinable fair value
Equity Securities without Readily Determinable Fair Value	$ 31,124	$ 31,262
Astria/Catabasis
Equity securities without readily determinable fair value
Equity Securities without Readily Determinable Fair Value	174	312
Zenas Bio Pharma Limited
Equity securities without readily determinable fair value
Equity Securities without Readily Determinable Fair Value	$ 30,950	$ 30,950

Marketable Debt and Equity Securities - Equity Securities Transactions (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Equity Securities
(Loss) gain on equity securities, net	$ (6,545)	$ 43,020	$ (9,974)	$ 56,002
Impairment	100	$ 0	100	$ 0
Preferred Stock
Equity Securities
Equity Securities without Readily Determinable Fair Value	31,124		31,124		$ 31,262
Astria/Catabasis \| Preferred Stock
Equity Securities
Equity Securities without Readily Determinable Fair Value	174		174		$ 312
Impairment	$ 100		$ 100
Technology License Agreement \| Viridian \| Common Stock
Equity Securities
Owned investment	717,144		717,144
License Agreement \| INmune \| Common Stock
Equity Securities
Owned investment	1,885,533		1,885,533

Marketable Debt and Equity Securities - Net gains and losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Marketable Debt and Equity Securities
Net (loss) gain recognized on equity securities	$ (6,545)	$ 43,020	$ (9,974)	$ 56,002
Less: net gain recognized on sale of equity securities		(18,300)		(18,301)
Unrealized (loss) gain recognized on equity securities	$ (6,545)	$ 24,720	$ (9,974)	$ 37,701

Stock Based Compensation (Details)			1 Months Ended		6 Months Ended		103 Months Ended
Stock Based Compensation (Details)	Jan. 01, 2022 shares	Dec. 02, 2013 shares	Dec. 31, 2013	Nov. 30, 2013 shares	Jun. 30, 2022 item shares	Jun. 30, 2021 shares	Jun. 30, 2022 shares
Stock options
Stock-based compensation
Options granted (in shares)					1,883,951	1,488,576
ESPP
Stock-based compensation
Total number of shares of common stock available for issuance					576,409		576,409
Annual percentage increase in shares of common stock available for issuance	1.00%
Awards issued under the plan (in shares)							598,432
Annual increase in shares of common stock available for issuance (in shares)	593,555
ESPP \| Maximum
Stock-based compensation
Annual percentage increase in shares of common stock available for issuance			1.00%
Annual increase in shares of common stock available for issuance (in shares)				621,814
RSUs
Stock-based compensation
Granted					763,830		1,888,317
Annual installment vesting periods \| item					3
The 2013 Plan
Stock-based compensation
Total number of shares of common stock available for issuance	2,374,222				15,063,313		15,063,313
Annual percentage increase in shares of common stock available for issuance			4.00%
Increase in shares of common stock available for issuance (in shares)					2,374,222
Options granted (in shares)							14,284,024
The 2010 Plan
Stock-based compensation
Options granted (in shares)		0

Stock-Based Compensation - Employee expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Stock-based compensation
Total employee, director and non-employee stock-based compensation expense	$ 12,603	$ 9,350	$ 23,408	$ 17,643
Stock options
Stock-based compensation
Total employee, director and non-employee stock-based compensation expense	7,512	7,355	14,345	13,885
ESPP
Stock-based compensation
Total employee, director and non-employee stock-based compensation expense	290	253	591	501
RSUs
Stock-based compensation
Total employee, director and non-employee stock-based compensation expense	4,801	1,742	8,472	3,257
General and administrative
Stock-based compensation
Total employee, director and non-employee stock-based compensation expense	4,350	3,193	8,024	5,930
Research and development
Stock-based compensation
Total employee, director and non-employee stock-based compensation expense	$ 8,253	$ 6,157	$ 15,384	$ 11,713

Stock-Based Compensation - Option activity (Details) - Stock options - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Number of Shares subject to outstanding options
Balance at the beginning of the period (in shares)	8,676,329
Options granted (in shares)	1,883,951	1,488,576
Options forfeited (in shares)	(284,373)
Options exercised (in shares)	(107,374)
Balance at the end of the period (in shares)	10,168,533		8,676,329
Exercisable options (in shares)	6,202,735
Weighted Average Exercise Price (Per Share)
Balance at the beginning of the period (in dollars per share)	$ 29.11
Options granted (in dollars per share)	29.73
Options forfeited (in dollars per share)	33.50
Options exercised (in dollars per share)	19.06
Balance at the end of the period (in dollars per share)	29.21		$ 29.11
Exercisable (in dollars per share)	$ 26.08
Weighted-average remaining contractual life	6 years 8 months 23 days		6 years 7 months 24 days
Weighted-average remaining contractual life of awards exercisable	5 years 3 months 29 days
Aggregate intrinsic value of options outstanding	$ 32,587		$ 100,057
Aggregate intrinsic value of options exercisable	$ 32,277
Closing price of common stock (in dollars per share)	$ 27.37
Weighted average fair value of options granted (in dollars per share)	$ 15.64	$ 22.54

Stock-Based Compensation - FV of employee stock options (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Stock options
Weighted average assumptions for estimated fair value of employee stock options
Expected volatility (as a percent)	53.10%	55.30%	53.00%	55.60%
Risk-free interest rate (as a percent)	3.13%	1.03%	1.93%	1.02%
Expected term (years)	6 years 3 months 18 days	6 years 2 months 12 days	6 years 4 months 24 days	6 years 2 months 12 days
Compensation expense
Period to recognize unamortized compensation expense			2 years 8 months 12 days
Unamortized compensation expense related to unvested options	$ 66.5		$ 66.5
ESPP
Weighted average assumptions for estimated fair value of employee stock options
Expected volatility, low end of range (as a percent)	43.20%	46.10%	43.20%	46.10%
Expected volatility, high end of range (as a percent)	55.70%	66.40%	55.70%	66.40%
Risk-free interest rate, low end of range (as a percent)	0.13%	0.04%	0.13%	0.04%
Risk-free interest rate, high end of range (as a percent)	2.82%	1.65%	2.82%	1.65%
Compensation expense
Period to recognize unamortized compensation expense			1 year 4 months 24 days
Unamortized compensation expense related to unvested options	$ 1.8		$ 1.8
ESPP \| Minimum
Weighted average assumptions for estimated fair value of employee stock options
Expected term (years)	6 months	6 months	6 months	6 months
ESPP \| Maximum
Weighted average assumptions for estimated fair value of employee stock options
Expected term (years)	2 years	2 years	2 years	2 years

Stock Based Compensation - Restricted stock units (Details) - RSUs $ / shares in Units, $ in Thousands	6 Months Ended	103 Months Ended
	Jun. 30, 2022 USD ($) $ / shares shares	Jun. 30, 2022 USD ($) $ / shares shares
Stock-based compensation
Beginning balance \| shares	826,148
Granted \| shares	763,830	1,888,317
Vested \| shares	(152,908)
Forfeited \| shares	(60,950)
Ending balance \| shares	1,376,120	1,376,120
Weighted Average Grant Date Fair Value, Beginning Balance \| $ / shares	$ 37.79
Weighted Average Grant Date Fair Value, Granted \| $ / shares	29.71
Weighted Average Grant Date Fair Value, Vested \| $ / shares	37.82
Weighted Average Grant Date Fair Value, Forfeited \| $ / shares	34.81
Weighted Average Grant Date Fair Value, Ending Balance \| $ / shares	$ 33.43	$ 33.43
Compensation expense
Unamortized compensation expense related to unvested restricted stock units \| $	$ 36,900	$ 36,900
Period to recognize unamortized compensation expense	2 years 2 months 12 days

Leases (Details) $ in Thousands	1 Months Ended		3 Months Ended	6 Months Ended
Leases (Details) $ in Thousands	Jun. 30, 2021 item	Jul. 31, 2017	Jun. 30, 2022 USD ($)	Jun. 30, 2022 USD ($)	Sep. 30, 2026 USD ($)	Aug. 01, 2022 USD ($)	Dec. 31, 2021 USD ($)
Lessee, Lease, Description [Line Items]
Option to extend		true
ROU assets exchanged for operating lease liabilities			$ 1,500	$ 1,500
For the remainder of 2022			1,064	1,064
2023			6,804	6,804
2024			5,713	5,713
2025			5,817	5,817
2026			5,279	5,279
2027			5,433	5,433
Thereafter			46,685	46,685
Total undiscounted lease payments			76,795	76,795
Less: Tenant allowance			(10,817)	(10,817)
Less: Imputed interest			(24,388)	(24,388)
Present value of lease payments			41,590	41,590
Lease liability - long-term			$ 33,943	$ 33,943			$ 33,969
Monrovia, CA - office and laboratory space
Lessee, Lease, Description [Line Items]
Renewal term			5 years	5 years
Monrovia, CA - office and laboratory space with additional space
Lessee, Lease, Description [Line Items]
Renewal term			2 years	2 years
Pasadena, CA - office and laboratory space
Lessee, Lease, Description [Line Items]
Phases of lease term \| item	2
Forecast \| Pasadena, CA - office and laboratory space
Lessee, Lease, Description [Line Items]
Improvement allowance					$ 3,300	$ 17,000

Leases - Operating lease liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Leases
Lease liability - short-term	$ 7,647
Lease liability - long-term	33,943	$ 33,969
Operating lease liabilities	$ 41,590

Leases - Lease costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Leases - Lease costs (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Leases
Operating lease cost	$ 1,574	$ 614	$ 3,136	$ 1,228
Variable lease cost	33	18	132	28
Total lease costs	1,607	632	3,268	1,256
Cash paid for amounts included in the measurement of lease liabilities	665	$ 548	1,349	$ 1,047
ROU assets exchanged for operating lease liabilities	$ 1,500		$ 1,500
Remaining lease term	12 years	3 years 1 month 6 days	12 years	3 years 1 month 6 days
Discount rate	6.00%	4.00%	6.00%	4.00%

Collaboration and Licensing Agreements (Details)				1 Months Ended					3 Months Ended			6 Months Ended
Collaboration and Licensing Agreements (Details)	Nov. 12, 2021 USD ($) shares	Oct. 01, 2021 USD ($) $ / shares	Mar. 08, 2019	Dec. 31, 2021 USD ($) item	Nov. 30, 2020 USD ($) item	Mar. 31, 2020 item	Feb. 28, 2019	Jan. 31, 2013 Program	Jun. 30, 2022 USD ($) agreement	Jun. 30, 2021 USD ($) agreement	Sep. 30, 2019 item	Jun. 30, 2022 USD ($) agreement	Jun. 30, 2021 USD ($) agreement	Mar. 31, 2022 USD ($)
Collaboration research and licensing agreements
Receivable				$ 66,384,000					$ 54,284,000			$ 54,284,000
Revenue recorded									30,175,000	$ 67,447,000		115,670,000	$ 101,412,000
Other income									(147,000)	(6,000)		(244,000)	(17,000)
Impairment									100,000	0		100,000	0
Net gains recognized on sale of equity securities										18,300,000			18,301,000
Unrealized (loss) gain recognized on equity securities									(6,545,000)	24,720,000		(9,974,000)	37,701,000
Net gains recognized on equity securities									(6,545,000)	43,020,000		(9,974,000)	56,002,000
Accounts receivable				$ 66,384,000					54,284,000			54,284,000
Deferred revenue									35,300,000	19,200,000		35,300,000	19,200,000
Royalties
Collaboration research and licensing agreements
Revenue recorded									30,000,000.0	7,300,000		108,700,000	14,000,000.0
Milestone
Collaboration research and licensing agreements
Revenue recorded										1,500,000		5,000,000.0	14,000,000.0
Research collaboration
Collaboration research and licensing agreements
Revenue recorded									200,000	58,600,000		2,000,000.0	73,400,000
Alexion Pharmaceuticals, Inc.
Collaboration research and licensing agreements
Revenue recorded									6,700,000	5,200,000		12,900,000	10,500,000
Astellas
Collaboration research and licensing agreements
Revenue recorded												5,000,000.0
Genentech
Collaboration research and licensing agreements
Revenue recorded										2,300,000			2,500,000
Genentech \| Collaboration and License Agreement
Collaboration research and licensing agreements
Revenue recognized										2,300,000			2,500,000
MorphoSys
Collaboration research and licensing agreements
Revenue recorded									1,200,000	1,200,000		3,500,000	15,100,000
Novartis
Collaboration research and licensing agreements
Revenue recorded										41,100,000			41,100,000
Novartis \| Collaboration and License Agreement
Collaboration research and licensing agreements
Revenue recognized										41,100,000			41,100,000
Vir
Collaboration research and licensing agreements
Revenue recorded									22,100,000	1,400,000		92,300,000	1,400,000
Option and license agreement \| Alexion Pharmaceuticals, Inc.
Collaboration research and licensing agreements
Receivable									12,000,000.0			12,000,000.0
Accounts receivable									12,000,000.0			12,000,000.0
Deferred revenue									0			0
Number of different target programs \| Program								1
Option and license agreement \| Alexion Pharmaceuticals, Inc. \| Royalties
Collaboration research and licensing agreements
Revenue recognized									6,700,000	5,200,000		12,900,000	10,500,000
Research and License Agreement \| Amgen, Inc.
Collaboration research and licensing agreements
Revenue recognized									0	0		0	0
Deferred revenue									0			0
Research and License Agreement \| Astellas
Collaboration research and licensing agreements
Revenue recognized									0	0		5,000,000.0	0
Deferred revenue									0			0
Research and License Agreement \| Astellas \| Milestone
Collaboration research and licensing agreements
Receivable									5,000,000.0			5,000,000.0
Contract asset														$ 5,000,000.0
Accounts receivable									5,000,000.0			5,000,000.0
Collaboration and License Agreement \| Genentech
Collaboration research and licensing agreements
Initial cost-sharing percentage			45.00%
Research license term							2 years
Revenue recognized									0			0
Collaboration and License Agreement \| Genentech \| XmAb24306
Collaboration research and licensing agreements
Cost sharing receivable (payable)									(3,500,000)			(3,500,000)
Collaboration and License Agreement \| Genentech \| Research service
Collaboration research and licensing agreements
Deferred revenue									0			0
Collaboration and License Agreement \| Janssen Biotech, Inc
Collaboration research and licensing agreements
Revenue recognized									$ 200,000	$ 16,200,000		$ 2,000,000.0	$ 30,800,000
Number of collaboration and license agreements \| agreement									2	2		2	2
Collaboration and License Agreement \| MorphoSys
Collaboration research and licensing agreements
Deferred revenue									$ 0			$ 0
Collaboration and License Agreement \| MorphoSys \| Royalties
Collaboration research and licensing agreements
Receivable									1,800,000			1,800,000
Revenue recognized									1,200,000	$ 1,200,000		3,500,000	$ 15,100,000
Accounts receivable									1,800,000			1,800,000
Collaboration and License Agreement \| Novartis
Collaboration research and licensing agreements
Revenue recognized									0			0
Deferred revenue									0			0
Collaboration and License Agreement \| Novartis \| Development
Collaboration research and licensing agreements
Cost sharing receivable (payable)									800,000			800,000
Technology License Agreement \| Astria/Catabasis
Collaboration research and licensing agreements
Unrealized (loss) gain recognized on equity securities									(2,400,000)	(3,700,000)		(1,500,000)	9,200,000
Deferred revenue									0			0
Technology License Agreement \| Viridian
Collaboration research and licensing agreements
Number of antibodies \| item				3
Revenue recognized									0	0		0	0
Unrealized (loss) gain recognized on equity securities									(5,000,000.0)	500,000		(5,900,000)	600,000
Deferred revenue									0			0
License Agreement \| INmune
Collaboration research and licensing agreements
Net gains recognized on sale of equity securities										18,300,000			18,300,000
Unrealized (loss) gain recognized on equity securities									800,000	27,900,000		(2,600,000)	27,900,000
License Agreement \| Zenas Bio Pharma Limited
Collaboration research and licensing agreements
Revenue recognized									0	0		0	0
Purchase amount of share options or equity in noncash transaction					$ 16,100,000
Impairment									0	0		0	0
Deferred revenue									0			0
Percentage of equity of private company					15.00%
Number of drug candidates \| item					3
Patent License Agreement \| Vir
Collaboration research and licensing agreements
Deferred revenue									0			0
Number of different target programs \| item						2					2
Patent License Agreement \| Vir \| Royalties
Collaboration research and licensing agreements
Receivable									22,100,000			22,100,000
Revenue recognized									22,100,000	900,000		92,300,000	900,000
Accounts receivable									22,100,000			22,100,000
Patent License Agreement \| Vir \| Milestone
Collaboration research and licensing agreements
Revenue recognized										$ 500,000			$ 500,000
Second Collaboration And License Agreement \| Janssen Biotech, Inc
Collaboration research and licensing agreements
Share development percentage		80.00%
Nonrefundable upfront payment		$ 100,000,000.0
Potential milestone payment		$ 1,187,500,000
Research license term		2 years
Deferred revenue									35,300,000			35,300,000
Cost sharing receivable (payable)									$ 4,600,000			$ 4,600,000
Percentage of responsibility for development costs		20.00%
Second Collaboration And License Agreement \| Johnson & Johnson Innovation, JJDC, Inc. \| Common Stock
Collaboration research and licensing agreements
Total equity shares \| shares	748,062
Proceeds from sale of common stock	$ 28,900,000	$ 25,000,000.0
Term of weighted average price of stock		30 days
Volume-weighted average per share price \| $ / shares		$ 33.4197
Second Technology License Agreement \| Viridian
Collaboration research and licensing agreements
Research license term				1 year
Development-based \| Second Collaboration And License Agreement \| Janssen Biotech, Inc
Collaboration research and licensing agreements
Potential milestone payment		$ 289,400,000
Regulatory-based \| Second Collaboration And License Agreement \| Janssen Biotech, Inc
Collaboration research and licensing agreements
Potential milestone payment		378,100,000
Sales-based \| Second Collaboration And License Agreement \| Janssen Biotech, Inc
Collaboration research and licensing agreements
Potential milestone payment		$ 520,000,000.0

Collaborative and Licensing Agreements - Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue recorded	$ 30,175	$ 67,447	$ 115,670	$ 101,412
Deferred revenue	35,300	19,200	35,300	19,200
Research collaboration
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue recorded	200	58,600	2,000	73,400
Milestone
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue recorded		1,500	5,000	14,000
Royalties
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue recorded	30,000	7,300	108,700	14,000
Alexion Pharmaceuticals, Inc.
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue recorded	6,700	5,200	12,900	10,500
Astellas
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue recorded			5,000
Genentech
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue recorded		2,300		2,500
Janssen
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue recorded	200	16,200	2,000	30,800
MorphoSys
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue recorded	1,200	1,200	3,500	15,100
Novartis
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue recorded		41,100		41,100
Vir
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue recorded	$ 22,100	$ 1,400	$ 92,300	$ 1,400

Income Taxes (Details) - USD ($)	3 Months Ended		6 Months Ended
Income Taxes (Details) - USD ($)	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Reconciliation of federal statutory income tax to effective income tax
Income tax expense	$ 0	$ 0	$ 0	$ 0

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details