Xencor, Inc. (NASDAQ: XNCR) has reached a settlement with Alexion Pharma International Operations Limited to resolve a dispute over U.S. royalties on Ultomiris® (ravulizumab-cwvz), according to a press release from the company.

Under the agreement, Xencor will receive $105 million in two equal payments of $52.5 million. The first payment is expected in August 2026, with the second due on the one-year anniversary of the executed settlement. In exchange, Alexion will have no further obligation to pay royalties on U.S. sales of Ultomiris.

Xencor said it will continue to receive royalties on sales of Ultomiris outside the United States under the existing terms of its license agreement with Alexion.

The dispute originated in March 2026, when Alexion informed Xencor that it believed no additional royalties were owed on U.S. sales of Ultomiris and that it would not make future payments related to those sales.

Bassil Dahiyat, Ph.D., president and chief executive officer of Xencor, said: "We are pleased to have reached a resolution that provides immediate capital and reflects the value of the U.S. royalty stream that we had previously expected through 2028. We have returned our operating runway estimate to extend through 2028."

Xencor said it expects to have sufficient cash resources to fund research and development programs and operations through 2028, based on current operating plans. The company said it will update its year-end 2026 cash guidance when it reports second-quarter 2026 financial results.