By Katherine Hamilton

Xencor said its licensee Alexion Pharmaceuticals will no longer pay royalties on U.S. sales of Ultomiris.

Alexion notified the biopharmaceutical company that it doesn't owe royalties and doesn't intend to make any future payments on U.S. sales of the drug, which is designed to treat rare autoimmune and blood disorders.

Alexion plans to continue making royalty payments for Ultomiris sales outside the U.S., Xencor said.

As a result, Xencor now expects to end 2026 with $380 million to $400 million in cash, cash equivalents and debt securities. In late February, the company had said it expected to end the year with $400 million to $430 million.

It said its funds are enough to continue development and research into mid-2028, while its prior guidance was through 2028.

Xencor previously said it expected to record $100 million to $120 million through 2028 from low single-digit royalties on net sales from its Ultomiris patent in the U.S. from Alexion.

"One licensee has expressed disagreement regarding payments for net sales of Ultomiris in the United States, and we plan to work toward a resolution in this matter," Chief Executive Bassil Dahiyat said.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

March 04, 2026 17:26 ET (22:26 GMT)

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