Xencor Inc. Announces $105M Settlement with Alexion over Ultomiris Royalties

What Happened

• On July 29, 2026 Xencor, Inc. (XNCR) announced it entered a Settlement Agreement with Alexion Pharma International Operations Limited resolving a commercial dispute over U.S. royalties for Ultomiris (ravulizumab‑cwvz).
• Under the agreement Xencor will receive $105 million in total, paid in two equal installments of $52.5 million: the first payment is anticipated in August 2026 and the second payment is due within 14 days after the one‑year anniversary of the Settlement Agreement. Alexion will have no further obligation to pay royalties on U.S. sales of Ultomiris. The settlement does not affect ex‑U.S. royalties under Xencor’s existing 2013 Option and License Agreement with Alexion.

Key Details

• Total settlement: $105 million, split into two $52.5M payments.
• Timing: first payment expected August 2026; second within 14 days following the one‑year anniversary of the agreement.
• Background: Alexion had notified Xencor in March 2026 that it believed no additional U.S. royalties were owed; the Settlement Agreement fully resolves that dispute.
• Financial outlook: Xencor says, based on current plans, it expects cash to fund R&D programs and operations through 2028.

Why It Matters

• The settlement provides a near‑term cash infusion ($105M) and resolves uncertainty over U.S. Ultomiris royalties, which removes the risk of ongoing litigation or disputed collections related to those U.S. sales.
• Because Alexion gives up future U.S. royalty obligations, Xencor will not receive further U.S. royalty payments on Ultomiris going forward, trading potential future recurring royalty income for a fixed cash payment now.
• Xencor’s stated cash runway through 2028 may ease investor concerns about near‑term financing needs for research and development.