Alexion Stops US Ultomiris Royalties, Xencor Revises $380M–$400M Cash Outlook
AstraZeneca’s Alexion unit has halted additional U.S. royalty payments to Xencor for Ultomiris sales, prompting Xencor to remove expected $100–120 million in royalty revenue through 2028 from its outlook. Xencor lowered its projected 2026 cash balance to $380–$400 million while ex-U.S. royalties remain unaffected.
1. Royalty Dispute
Alexion, under AstraZeneca, has notified Xencor that it does not owe additional royalties for U.S. net sales of Ultomiris, reversing Xencor’s expectation of low single-digit royalties. This affects only U.S. sales; payments from other territories continue as normal.
2. Financial Outlook Revision
Xencor had anticipated receiving $100–$120 million in royalties through 2028 for U.S. Ultomiris sales but has removed these figures, prompting a reduction in its 2026 cash balance forecast to $380–$400 million. The company still projects a cash runway into mid-2028.
3. Next Steps for Resolution
Xencor plans to engage with Alexion to resolve the payment disagreement, aiming to clarify contractual obligations under the XmAb Fc domain license. Management expects to update investors once discussions conclude and any revised terms are settled.