Xencor, Inc. (XNCR) — ESG & Values Scores

Environment story

Xencor is a clinical-stage biopharmaceutical company with minimal direct operational environmental footprint. No disclosed Scope 1, Scope 2, or Scope 3 emissions data, renewable energy percentage, or net-zero target found in 10-K. Company acknowledges in risk factors that it 'involves the controlled use of hazardous materials' and is 'subject to environmental and occupational safety laws,' but no specific controversies, fines, or environmental incidents are reported. As a research and development-stage biotech with operations concentrated in California, environmental impact is primarily through laboratory operations and third-party manufacturing. No evidence of greenwashing or supply-chain carbon concerns. Deductions applied for undisclosed emissions and absent net-zero commitment.

Criticisms on file

No material criticisms on file for this pillar.

Disclosed initiatives

Hazardous Materials Compliance

Company acknowledges compliance with environmental and occupational safety laws related to controlled use of hazardous materials in research operations.

Social story

Xencor discloses limited social metrics in the 10-K filing. No CEO-to-median-worker pay ratio, workforce turnover rate, or diversity statistics (gender/race in executive/board roles) are disclosed. The company faces no reported union-suppression activities, strikes, or major labor litigation within the past 24 months. Risk factors reference the biotechnology industry's competition for skilled personnel but do not flag specific retention issues or labor disputes. No supply-chain human-rights audits, conflict minerals policies, or living-wage commitments are mentioned. Deductions applied for absent diversity disclosure and lack of transparency on executive compensation equity. The company does not disclose supplier-diversity programs or civil-rights audits.

Criticisms on file

No material criticisms on file for this pillar.

Disclosed initiatives

Personnel Retention Challenge Acknowledgment

Company acknowledges in risk factors that 'the industry is subject to competition for skilled personnel and challenges to identify and retain key personnel could impair our ability to effectively conduct and grow our operations.'

Governance story

Xencor exhibits concentrated ownership and governance concerns. As of December 31, 2025, executive officers, directors, 5% stockholders, and their affiliates beneficially owned approximately 68.1% of voting stock, granting insiders significant control. The company operates a single-class common stock structure (no dual-class voting) but board independence percentage is not disclosed in the 10-K. The company disclosed material weaknesses in internal controls over financial reporting as of December 31, 2023, related to review of non-routine transactions and tax legislation evaluation, leading to restatement of 2023 and Q1-Q3 2024 financial statements; management stated remediation during 2025. No lobbying expenditures targeting environmental deregulation or consumer-protection rollbacks are disclosed. No active antitrust, consumer-safety, or financial-fraud proceedings are reported. No SEC consent decrees or major governance fines are disclosed. Deductions applied for lack of board-independence disclosure, prior material weaknesses in internal controls, and concentrated insider ownership.

Criticisms on file

Material Weaknesses in Internal Controls (2023). Restatement of 2023 audited financials and Q1-Q3 2024 unaudited financials due to deficiencies in control over accounting treatment of non-routine transactions and evaluation of tax legislation.
Source: XNCR 10-K 2025; Item 1A Risk Factors; SEC filings 10-K/A (Feb 24, 2025) and 10-Q/As for Q1-Q3 2024.
Patent Infringement Litigation with Merus B.V. Merus filed suit in U.S. District Court (Delaware) in August 2024 alleging infringement of Merus patents related to bispecific antibody components in XNCR candidates (plamotamab, vudalimab, XmAb819). XNCR filed motion to dismiss under 35 U.S.C. § 271(e)(1) safe harbor on October 10, 2024. On September 30, 2025, court granted motion to dismiss but permitted amended complaint. On November 11, 2025, Merus filed first amended complaint asserting U.S. Patent Nos. 9,944,695, 9,358,286, 11,926,859, 12,123,043. XNCR filed second motion to dismiss on December 16, 2025. Briefing ongoing; hearing held February 17, 2026. XNCR filed inter partes review on February 11, 2025, challenging patentability of Merus U.S. Patent Nos. 9,358,286 and 11,926,859; inter partes review granted September 26, 2025, with oral argument scheduled June 24, 2026. Potential liability includes treble damages and attorneys' fees if infringement found.
Source: XNCR 10-K 2025; Item 1A Risk Factors; U.S. District Court (Delaware) Case No. [referenced in 10-K]; USPTO inter partes review records.

Disclosed initiatives

Internal Control Remediation

Company remediated material weaknesses in internal controls over financial reporting during year ended December 31, 2025, addressing root causes related to review of non-routine transaction accounting treatment and tax legislation evaluation.
Disclosure Controls Enhancement

Management improved control design and documentation processes following prior material weaknesses.

These are Missionomics' own editorial scores — directional signals built from disclosed facts under a published method, not certifications or definitive ratings of Xencor, Inc.. Coverage and confidence vary by data point, and figures can lag real-world changes. Read the full Methodology for sourcing, scoring, and correction details — or open Xencor, Inc. in the app for interactive charts and portfolio building.

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