Xilio Therapeutics Reports Q2 Earnings with Promising Pipeline Progress and Financial Results

Xilio Therapeutics reported Q2 earnings with promising Phase 2 data for its investigational therapy, vilastobart, demonstrating a 26% objective response rate in metastatic colorectal cancer. The company also reported a substantial increase in collaboration and license revenue, driven by partnerships with AbbVie and Gilead. Xilio completed a successful public offering, bolstering its cash reserves to $121.6 million. Despite increased R&D expenses, the company remains optimistic about its cash runway extending through Q3 2026.

Xilio Therapeutics (NASDAQ: XLO) has reported its Q2 2025 financial results, highlighting significant progress in its pipeline and securing substantial financial backing. The company's lead candidate, vilastobart, showed promising Phase 2 data with a 26% objective response rate in metastatic microsatellite stable colorectal cancer patients without liver metastases. The therapy demonstrated deep and durable responses, along with a differentiated safety profile compared to traditional CTLA-4 inhibitors like ipilimumab.

Financial highlights for the quarter include $121.6 million in cash and cash equivalents, a net loss of $15.8 million, and revenue of $8.1 million. The company completed a follow-on offering, raising $50.0 million in initial gross proceeds with potential for an additional $100.0 million from warrant exercises. This financial strengthening positions Xilio to extend its cash runway through Q3 2026.

Xilio's pipeline also saw notable advancements. Vilastobart, a tumor-activated, Fc-enhanced, high affinity binding anti-CTLA-4 monoclonal antibody, is currently being evaluated in Phase 1C combination dose escalation with atezolizumab and in a Phase 2 clinical trial in metastatic microsatellite stable colorectal cancer patients. The company's IL-12 program (XTX301) has completed Phase 1A dose escalation in partnership with Gilead, while its masked PD-1/IL-2 bispecific (XTX501) is advancing toward IND submission by mid-2026. Additionally, Xilio is developing masked T cell engagers targeting PSMA, CLDN18.2, and STEAP1, with development candidates expected in Q3-Q4 2025.

Collaboration and license revenue increased significantly, driven by partnerships with AbbVie and Gilead. The company expects to nominate development candidates for its masked T cell engager programs in H2 2025 and projects cash runway through Q3 2026. Despite a quarterly net loss of $15.8 million, reflecting planned investment in clinical programs, Xilio remains optimistic about its future prospects.

References:
[1] https://www.stocktitan.net/news/XLO/xilio-therapeutics-announces-pipeline-and-business-updates-and-bbyate5esg93.html