Better Health for All

Xencor's core business is the development of novel therapies, including monoclonal antibodies and protein therapeutics, for life-threatening and debilitating diseases such as autoimmune diseases and various cancers.

The company has more than 20 different clinical programs focused on these treatments, indicating its entire business is devoted to health improvement. There is no evidence of revenue from products with negative health outcomes. In terms of R&D, Xencor reported expenses of $310.2 million in 2023, a decrease from $332.1 million in 2022. The company raised approximately $150 million through a public offering in early 2024. Xencor's operations, particularly in research, development, and manufacturing of biologics, generate biological waste and are water-intensive, requiring meticulous management. The company must comply with regulations like GDPR and HIPAA to safeguard patient information, with potential fines up to 4% of annual global turnover or €20 million for GDPR non-compliance and up to $1.5 million annually for HIPAA violations. Clinical trials are conducted to determine the safety and effectiveness of Xencor's drug candidates, with strict adherence to FDA regulations being fundamental.

Fair Money & Economic Opportunity

Xencor, Inc. is a biopharmaceutical company focused on discovering and developing engineered monoclonal antibodies.

The company does not offer lending, deposit, or other financial services to consumers. Therefore, all KPIs related to financial products and services are not applicable. There is no evidence of Xencor providing financial products or services that would allow for scoring against the specific metrics of this value.

Fair Pay & Worker Respect

For fiscal year 2024, Xencor's CEO to median employee pay ratio was 25:1.

The company provides a comprehensive benefits program for employees and their families, including medical, dental, vision, dependent care, mental health, and other wellness benefits. All employees are eligible for cash bonuses, equity awards, and participation in an Employee Stock Purchase Plan. None of the company's employees are represented by any collective bargaining unit, but the Code of Business Conduct and Ethics does not prohibit employees from engaging in concerted activity protected by the National Labor Relations Board. As of December 31, 2023, the workforce was 58% non-white and 57% women, with women comprising 33% of senior leadership. The company conducts regular staff engagement surveys and holds town hall meetings. In January 2024, Xencor completed a reduction in force affecting approximately 10% of its total employee headcount, resulting in 256 full-time employees as of February 1, 2024. The company maintains policies prohibiting unlawful discrimination and supports career development through reimbursement and time for professional development courses.

Honest & Fair Business

Xencor restated its audited consolidated financial statements for the fiscal year ended December 31, 2023, and subsequent quarterly periods through September 30, 2024.

This was due to errors in accounting for a royalty transaction, which understated accounts receivable by $12.4 million, overstated deferred income by $156.9 million, understated debt by $168.5 million, and understated shareholders’ equity by $0.8 million for 2023. It also understated revenue by $6.3 million and interest expense by $5.5 million, and overstated operating activities cash flow by $163.0 million while understating financing activities cash flow by the same amount. Additionally, there were tax misstatements, including an uncertain tax position of $5.6 million and an underestimation of state income tax expense by $2.2 million for 2023. The company identified a material weakness in its internal control over financial reporting related to these issues, and management concluded that disclosure controls and procedures were not effective as of December 31, 2023. RSM US LLP recalled its reports on the company's internal control over financial reporting and the financial statements for the affected periods. Xencor provides a whistleblower hotline for anonymous and confidential reporting of unethical or illegal behavior, including accounting or financial fraud. Reports go directly to the Chair of the Audit Committee and the General Counsel, are thoroughly investigated, and employees are protected from retaliation for good faith reports. A 14 to 16-digit code is provided to track the status of messages. The company relies on third-party vendors, suppliers, and contractors for all research, development, and clinical activities, and for manufacturing drug substance and product. It also conducts periodic assessments and testing of its cybersecurity policies by independent third-party specialists.

Kind to Animals

Xencor is committed to the ethical use of animals in preclinical testing and complies with the 'Three Rs' (Replacement, Reduction, and Refinement) ethical principles.

Its policy prohibits discretionary testing, but legal mandates still override alternatives. Animal studies are a standard part of preclinical testing, with all studies carefully reviewed by an Institutional Animal Care and Use Committee (IACUC) to ensure they are essential, as required by U.S. federal and state laws.

Planet-Friendly Business

No specific, quantifiable data points were found across the provided articles to assess Xencor, Inc. against any of the Planet-Friendly Business KPIs.

The articles primarily consist of corporate responsibility statements outlining general commitments, financial summaries, and codes of conduct, none of which contain the concrete environmental performance metrics required by the rubric. General commitments to environmental responsibility or the absence of reported violations do not constitute scorable evidence for specific KPIs.

Respect for Cultures & Communities

No specific, concrete data points or evidence regarding Xencor, Inc.'s respect for cultures and communities were found in the provided articles.

Therefore, no KPIs could be scored against the rubric.

Safe & Smart Tech

Xencor, Inc. provides regular, mandatory training and assessment for all levels of employees regarding cybersecurity threats, which includes communicating evolving information security policies, standards, processes, and practices.

The company implements current information technologies to support its cybersecurity practices, including data encryption, identity and access management, and vulnerability and patch management. It also conducts periodic assessment and testing of its security policies, standards, processes, and practices, including audits by independent third-party specialists. Xencor's privacy policy, last updated March 3, 2023, states that it retains personal information only as long as necessary to fulfill the purposes for which it was collected, including legal and reporting requirements. The company processes personal data of individuals in the EU, has appointed a Data Protection Representative for GDPR purposes, and acknowledges UK GDPR. The site does not currently respond to "Do Not Track" signals. California and EU residents have specific rights regarding their data, including access, rectification, erasure, and data portability, with a one-month response time. The company is subject to various U.S. federal, state, local, and foreign regulations, including those related to the FDA and healthcare laws, and mentions compliance with the EU’s Directive 95/46, CPRA, and similar state laws taking effect from 2023-2026.