SCHEDULE: RTW Investments Discloses 8.7% Stake in Xencor Inc.

RTW Investments, LP and Roderick Wong, M.D. have disclosed a beneficial ownership of 8.7% in Xencor Inc.'s common stock.

Summary

• RTW Investments, LP and its Managing Partner, Roderick Wong, M.D., have reported beneficial ownership of 6,221,054 shares of Xencor Inc. common stock.
• This ownership represents 8.7% of Xencor Inc.'s outstanding common stock, based on 71,323,046 shares outstanding as of August 1, 2025.
• The shares are held by RTW Funds, for which RTW Investments acts as an investment adviser, and Dr. Wong is the Managing Partner and Chief Investment Officer.
• The reporting persons share both voting and dispositive power over all 6,221,054 shares.
• The acquisition of these securities was made in the ordinary course of business and not for the purpose of changing or influencing control of Xencor Inc.

Sentiment

Score: 7

Explanation: The disclosure of a significant stake by a reputable institutional investor like RTW Investments is generally viewed positively by the market, suggesting a vote of confidence in Xencor Inc.'s value and future prospects. The explicit statement that the investment is not for control purposes also reduces potential uncertainty.

Positives

• A significant institutional investor, RTW Investments, has taken an 8.7% stake in Xencor Inc., potentially signaling confidence in the company's future prospects.
• The investment is stated to be in the ordinary course of business, suggesting a long-term investment strategy rather than an activist play.

Risks

• The filing explicitly states that the shares were not acquired for the purpose of or with the effect of changing or influencing the control of the issuer, mitigating the risk of an immediate activist challenge to management.

Future Outlook

The filing does not contain forward-looking statements or guidance from Xencor Inc. It is a disclosure of beneficial ownership by an investment firm.

Management Comments

• "To the best of my knowledge and belief, the securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under §§ 240.14a-11."

Industry Context

This filing indicates a significant investment by a specialized healthcare investment firm in Xencor Inc., a biotechnology company. Such investments are common in the biotech sector, where firms like RTW Investments seek to capitalize on the potential of innovative drug development and therapeutic platforms.

Comparison to Industry Standards

• A beneficial ownership stake of 8.7% is a substantial position for an institutional investor in a publicly traded company, often indicating a high level of conviction in the company's long-term value proposition.
• RTW Investments, LP is a prominent investment adviser focused on the healthcare sector, and their investment in Xencor Inc. aligns with their stated investment strategy in life sciences.

Stakeholder Impact

• Shareholders: The disclosure of a significant institutional stake may positively influence investor sentiment and potentially the stock price, signaling confidence from a sophisticated investor.
• Company Management: The certification that the investment is not for control purposes suggests that management can continue to execute its strategy without immediate pressure from an activist investor.

Next Steps

• RTW Investments, LP and Roderick Wong, M.D. will be responsible for timely filing any subsequent amendments to this Schedule 13G.

Key Dates

Recommendation

The filing indicates a significant vote of confidence from a specialized healthcare investment firm, RTW Investments, which has acquired an 8.7% stake in Xencor Inc. This institutional backing is generally a positive signal. However, without additional financial or operational updates from Xencor Inc. itself, a 'hold' recommendation is prudent for existing investors, while potential new investors might consider this a positive indicator for further due diligence. The investment is stated to be in the ordinary course of business, not for control, which suggests a long-term, supportive stance rather than an immediate catalyst for change.

Keywords

Xencor Inc, RTW Investments, Roderick Wong, Schedule 13G, Beneficial Ownership, Common Stock, Institutional Investment, Biotechnology, Healthcare