MacroGenics Provides Update on Corporate Progress and 2024 Financial Results

Rhea-AI Summary

MacroGenics (NASDAQ: MGNX) has reported its 2024 financial results and corporate updates. The company completed enrollment in the 150-patient LORIKEET Phase 2 study of lorigerlimab for mCRPC and plans to initiate the LINNET Phase 2 study in ovarian cancer. MacroGenics is advancing multiple novel topoisomerase 1 inhibitor-based ADCs, including MGC026, MGC028, and MGC030.

Financial highlights include:

• Cash position of $201.7 million as of December 31, 2024
• Total revenue of $150.0 million for 2024, up from $58.7 million in 2023
• Net loss of $67.0 million for 2024
• Cash runway extended into second half of 2026

The company has discontinued internal development of vobra duo and is exploring potential partnering opportunities. Notable developments include the sale of MARGENZA rights to TerSera for $40.0 million upfront, and Incyte's filing of an sBLA for retifanlimab in SCAC with anticipated approval in H2 2025.

Positive

• Revenue increased significantly to $150.0M in 2024 from $58.7M in 2023
• Strong cash position of $201.7M with runway extended into H2 2026
• Received $40.0M upfront payment from TerSera for MARGENZA rights
• Potential for $540.0M in additional milestone payments from Incyte partnership
• Successfully completed enrollment in LORIKEET Phase 2 study

Negative

• Net loss increased to $67.0M in 2024 from $9.1M in 2023
• R&D expenses increased to $177.2M from $166.6M year-over-year
• SG&A expenses rose to $71.0M from $52.2M year-over-year
• Discontinued internal development of vobra duo due to insufficient efficacy

Insights

Financial Analyst

MacroGenics' 2024 financial results present a mixed picture. Revenue jumped to $150 million (from $58.7 million in 2023), driven primarily by an $85 million increase in milestone payments from the Incyte partnership. However, net loss deteriorated substantially to $67 million from $9.1 million in 2023.

The decision to discontinue internal development of vobra duo represents a strategic pivot. While disappointing, this disciplined capital allocation allows the company to focus resources on more promising assets like lorigerlimab and their emerging ADC pipeline. The $40 million upfront payment from selling MARGENZA to TerSera (with potential for $35 million in additional milestones) provides non-dilutive funding.

The company's $201.7 million cash position, while down from $229.8 million last year, supports operations into H2 2026. This runway gives MacroGenics sufficient time to advance lorigerlimab through the LORIKEET Phase 2 trial in mCRPC and potentially generate value-creating clinical data from their ADC candidates.

Expense increases in both R&D (6.4% growth) and SG&A (36% growth) contributed to the widened loss. The SG&A increase largely stemmed from a one-time amendment fee paid to a former commercial partner plus accrued expenses related to the CEO's separation agreement, suggesting better expense control may be possible going forward.

Biotechnology Expert

MacroGenics is executing a significant pipeline evolution that prioritizes assets with differentiated mechanisms. Fully enrolling the 150-patient LORIKEET Phase 2 study for lorigerlimab represents meaningful progress for this dual PD-1/CTLA-4 bispecific. The planned expansion into ovarian cancer with the LINNET study is strategic, targeting indications historically resistant to checkpoint inhibition.

The company's decisive action to discontinue internal development of vobra duo following the TAMARACK study results demonstrates pragmatic portfolio management. While the reported median rPFS of 9.5-10.0 months didn't justify further investment, their continued advancement of MGC026 (an alternative B7-H3 ADC with a novel TOP1i payload) maintains exposure to this promising target with potentially improved therapeutic window.

The emerging ADC pipeline leveraging Synaffix's glycan-linked TOP1i technology represents a differentiated approach in a competitive landscape. MGC028 targeting ADAM9 is particularly noteworthy as it showed promising preclinical efficacy without the ocular toxicity often associated with tubulin-inhibitor payloads. This could potentially address a key limitation of current ADC approaches.

The partnered programs provide external validation and potential future revenue. Incyte's positive Phase 3 results for retifanlimab in SCAC and NSCLC, with an sBLA filing for SCAC, could trigger additional milestone payments from the $540 million still available under their agreement. The Gilead collaboration on MGD024 offers another potential value inflection point if Gilead exercises its license option.

• Fully enrolled LORIKEET, a randomized 150-patient Phase 2 study of lorigerlimab in combination with docetaxel in patients with mCRPC
• Initiating new LINNET Phase 2 study of lorigerlimab in ovarian cancer
• Advancing multiple novel topoisomerase 1 inhibitor-based ADCs, including MGC026, MGC028 and MGC030
• Discontinuing further internal clinical development of vobra duo; exploring potential partnering
• Cash, cash equivalents and marketable securities of $201.7 million as of December 31, 2024; cash runway extended into the second half of 2026
• Conference call scheduled for today at 4:30 p.m. ET 

ROCKVILLE, Md., March 20, 2025 (GLOBE NEWSWIRE) -- MacroGenics, Inc. (NASDAQ: MGNX), a biopharmaceutical company focused on discovering, developing, manufacturing and commercializing innovative antibody-based therapeutics for the treatment of cancer, today provided an update on its recent corporate progress and reported financial results for the year ended December 31, 2024.

"We concluded 2024 with the achievement of multiple clinical development milestones, including the completion of enrollment in the LORIKEET Phase 2 study evaluating lorigerlimab in combination with docetaxel in patients with mCRPC. We look forward to building upon this momentum in 2025 as we work to advance our novel pipeline of clinical product candidates, including lorigerlimab, MGC026 and MGC028,” said Scott Koenig, M.D., Ph.D., President and CEO of MacroGenics. “Finally, we have determined that the results of the TAMARACK Phase 2 study of vobra duo in mCRPC do not support additional financial investment by MacroGenics. We believe the B7-H3 target continues to have potential and are pleased with the progress being made with our alternate anti-B7-H3 ADC, MGC026.”

Updates on Proprietary Investigational Programs

Lorigerlimab is a bispecific, tetravalent PD-1 × CTLA-4 DART^® molecule designed to enhance CTLA-4 blockade on dual-expressing, tumor-infiltrating lymphocytes compared to a PD-1/CTLA-4 monoclonal antibody (mAb) combination therapy, while maintaining maximal PD-1 blockade on all PD-1-expressing cells.

• Enrollment is now complete in the ongoing LORIKEET Phase 2 trial, a 150 patient randomized study of lorigerlimab in combination with docetaxel vs. docetaxel alone in second-line, chemotherapy-naïve patients with metastatic castration-resistant prostate cancer (mCRPC). The Company expects to provide a clinical update in the second half of 2025.
• Based on MacroGenics’ cumulative experience to date from its Phase 1 and Phase 2 studies of lorigerlimab, including in mCRPC – a tumor setting historically insensitive to checkpoint inhibition – the Company plans to conduct the LINNET Phase 2 study. This clinical trial will evaluate lorigerlimab as monotherapy in patients with either platinum-resistant ovarian cancer (PROC) or clear cell gynecologic cancer (CCGC); both represent areas of unmet need and historically have been relatively insensitive to checkpoint inhibitor therapy. The study’s primary endpoint is ORR, with multiple secondary endpoints to be explored. The Company anticipates enrolling up to 40 patients with PROC and up to 20 patients with CCGC in LINNET, which is expected to commence by mid-2025.

Emerging ADC Pipeline. MacroGenics is developing two clinical and one preclinical antibody-drug conjugate (ADC) molecules that each incorporate a novel, glycan-linked topoisomerase I inhibitor (TOP1i)-based payload developed by the Company’s collaboration partner, Synaffix (a Lonza company). These three candidates are described below.

• MGC026 is a TOP1i-based ADC that targets B7-H3, an antigen with broad expression across multiple solid tumors and a member of the B7 family of molecules involved in immune regulation. MGC026 shares the same variable domain as that of vobra duo. MGC026 is currently being evaluated in a Phase 1 dose escalation study in patients with advanced solid tumors, with dose expansion in selected indications expected to initiate in 2025.
• MGC028 is a TOP1i-based ADC that targets ADAM9, a member of the ADAM family of multifunctional type 1 transmembrane proteins that play a role in tumorigenesis and cancer progression and is overexpressed in multiple cancers. The Company previously presented preclinical data showing antitumor activity of MGC028 in in vivo models. Also, in a non-human primate study, MGC028 was well tolerated at high dose levels with mild, reversible side effects and no ocular toxicity, which is often a concern with tubulin-inhibitor-based ADCs. The first patient was recently dosed in a Phase 1 study of MGC028 in patients with advanced solid tumors.
• MGC030 is a preclinical TOP1i-based ADC that targets an undisclosed antigen expressed across several solid tumors. There are currently no approved therapeutics to this target. An Investigational New Drug (IND) application to the U.S. Food and Drug Administration (FDA) for MGC030 is planned for 2026.
  

Updates on Selected Partnered Programs

• MGD024 is a next-generation CD123 × CD3 DART molecule. Under an October 2022 exclusive option and collaboration agreement with Gilead Sciences, Inc. (Gilead), MacroGenics continues to enroll patients in a Phase 1 dose escalation study of MGD024 in patients with CD123-positive neoplasms, including acute myeloid leukemia and myelodysplastic syndromes. Gilead has the option to license MGD024 at predefined decision points during the Phase 1 study.
• ZYNYZ^® (retifanlimab-dlwr) is a monoclonal antibody targeting PD-1 that the Company licensed to Incyte Corporation (Incyte) in 2017. In July 2024, Incyte announced positive Phase 3 top-line results for its registrational studies of retifanlimab in squamous cell carcinoma of the anal canal (SCAC) and non-small cell lung cancer (NSCLC) and continues to conduct global studies of retifanlimab across multiple indications. In February 2025, Incyte disclosed that its supplemental Biologics License Application (sBLA) for retifanlimab in advanced/metastatic SCAC was filed with the FDA in December 2024, with approval anticipated in the second half of 2025. To date, MacroGenics has received $365.0 million in upfront and milestone payments from Incyte under the agreement and remains eligible for up to $540.0 million in additional development, regulatory and commercial milestones.
• MARGENZA^® (margetuximab-cmkb) global rights were sold to TerSera Therapeutics LLC (TerSera), a privately-held biopharmaceutical company with a focus on oncology and non-opioid pain management, pursuant to an agreement previously announced. TerSera made a payment of $40.0 million to MacroGenics at closing in November 2024 and MacroGenics may receive additional sales milestone payments of up to an aggregate of $35.0 million. MacroGenics subsequently paid an $8.0 million amendment fee to its former commercialization partner during the fourth quarter of 2024. MacroGenics will manufacture MARGENZA drug substance on behalf of TerSera going forward.
  

Update on Vobramitamab Duocarmazine

Vobramitamab duocarmazine (vobra duo) is an ADC with a cleavable peptide linker designed to deliver a DNA-alkylating duocarmycin payload to solid tumors that express B7-H3.

• Results for the concluded TAMARACK Phase 2 study included, based on a February 21, 2025 data cut-off, mature median radiographic progression-free survival (rPFS) of 9.5 months for the 2.0 mg/kg cohort (95% CI, 8.5-11.2) and 10.0 months for the 2.7 mg/kg cohort (95% CI, 7.4-11.4) in patients with mCRPC. Safety data from the study remained consistent with prior data disclosures.
• Based on its assessment of the vobra duo safety and efficacy profile and an internal resource and portfolio review, MacroGenics has decided not to pursue further internal development of vobra duo and will instead explore potential alternatives for partnering this program.

2024 Financial Results

• Cash Position: Cash, cash equivalents and marketable securities balance as of December 31, 2024, was $201.7 million, compared to $229.8 million as of December 31, 2023.
• Revenue: Total revenue was $150.0 million for the year ended December 31, 2024, compared to total revenue of $58.7 million for the year ended December 31, 2023. The increase was primarily due to a net increase of $85.0 million in revenue recognized from milestones achieved under the Incyte License Agreement.
• R&D Expenses: Research and development expenses were $177.2 million for the year ended December 31, 2024, compared to $166.6 million for the year ended December 31, 2023. The increase was primarily due to increased research, development, manufacturing and clinical costs related to MGC028, the Company’s preclinical ADC pipeline and lorigerlimab, offset by decreased development and clinical trial costs related to the Company’s discontinued projects and margetuximab.
• SG&A Expenses: Selling, general and administrative expenses were $71.0 million for the year ended December 31, 2024, compared to $52.2 million for the year ended December 31, 2023. The increase was due to an amendment fee paid by MacroGenics to its former commercial partner pursuant to the sale of MARGENZA and increased non-cash stock-based compensation and accrued severance expenses related to the separation agreement with the Company’s Chief Executive Officer.
• Other Income: Other income for the year ended December 31, 2024, reflected a $36.3 million gain recognized on the sale of MARGENZA.
• Net Loss: Net loss was $67.0 million for the year ended December 31, 2024, compared to net loss of $9.1 million for the year ended December 31, 2023.
• Shares Outstanding: Shares of common stock outstanding as of December 31, 2024 were 62,819,857.
• Cash Runway Guidance: MacroGenics anticipates that its cash, cash equivalents and marketable securities balance of $201.7 million as of December 31, 2024, in addition to projected and anticipated future payments from partners should extend its cash runway into the second half of 2026. The Company’s expected funding requirements reflect anticipated expenditures related to the ongoing Phase 2 LORIKEET study of lorigerlimab in mCRPC as well as MacroGenics’ other clinical and preclinical studies currently ongoing.

Conference Call Information

To participate via telephone, please register in advance at this link. Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique passcode and registrant ID that can be used to access the call.

The listen-only webcast of the conference call can be accessed under "Events & Presentations" in the Investor Relations section of MacroGenics’ website at https://ir.macrogenics.com/events-and-presentations/events. A recorded replay of the webcast will be available shortly after the conclusion of the call and archived on MacroGenics’ website for 30 days following the call.

MACROGENICS, INC. SELECTED CONSOLIDATED BALANCE SHEET DATA (Amounts in thousands)
	December 31, 2024				December 31, 2023
Cash, cash equivalents and marketable securities	$	201,667			$	229,805
Total assets		261,655				298,418
Deferred revenue		71,822				80,894
Total stockholders' equity		116,057				152,613

MACROGENICS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Amounts in thousands, except share and per share data)
	Year Ended December 31,
	2024				2023				2022
Revenues:
Collaborative and other agreements	$	118,856			$	29,421			$	119,303
Product sales, net		16,426				17,939				16,727
Contract manufacturing		13,057				9,833				13,988
Government agreements		1,623				1,556				1,923
Total revenues		149,962				58,749				151,941
Costs and expenses:
Cost of product sales		847				619				3,351
Cost of manufacturing services		11,452				7,603				4,033
Research and development		177,194				166,583				207,026
Selling, general and administrative		71,047				52,188				58,949
Total costs and expenses		260,540				226,993				273,359
Loss from operations		(110,578	)			(168,244	)			(121,418	)
Gain on royalty monetization arrangement		—				150,930				—
Gain on sale of MARGENZA		36,250				—				—
Interest and other income		9,421				9,686				1,660
Interest and other expense		(1,115	)			(1,430	)			—
Loss before income taxes		(66,022	)			(9,058	)			(119,758	)
Income tax provision		944				—				—
Net loss		(66,966	)			(9,058	)			(119,758	)
Other comprehensive income (loss):
Unrealized gain (loss) on investments		10				(1	)			56
Comprehensive loss	$	(66,956	)		$	(9,059	)		$	(119,702	)
Basic and diluted net loss per common share	$	(1.07	)		$	(0.15	)		$	(1.95	)
Basic and diluted weighted average common shares outstanding		62,621,185				61,929,198				61,433,124

About MacroGenics, Inc.

MacroGenics (the Company) is a biopharmaceutical company focused on discovering, developing, manufacturing and commercializing innovative monoclonal antibody-based therapeutics for the treatment of cancer. The Company generates its pipeline of product candidates primarily from its proprietary suite of next-generation antibody-based technology platforms, which have applicability across broad therapeutic domains. The combination of MacroGenics' technology platforms and protein engineering expertise has allowed the Company to generate promising product candidates and enter into several strategic collaborations with global pharmaceutical and biotechnology companies. For more information, please see the Company's website at www.macrogenics.com. MacroGenics, the MacroGenics logo and DART are trademarks or registered trademarks of MacroGenics, Inc.

Cautionary Note on Forward-Looking Statements

Any statements in this press release about future expectations, plans and prospects for MacroGenics (“Company”), including statements about the Company’s strategy, future operations, clinical development of and regulatory plans for the Company’s therapeutic candidates, expected timing of the release of clinical updates and safety and efficacy data for the Company’s ongoing clinical trials and other statements containing the words “subject to”, "believe", “anticipate”, “plan”, “expect”, “intend”, “estimate”, “potential,” “project”, “may”, “will”, “should”, “would”, “could”, “can”, the negatives thereof, variations thereon and similar expressions, or by discussions of strategy constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: risks that TZIELD, lorigerlimab, ZYNYZ, or any other product candidate’s revenue, expenses and costs may not be as expected, risks relating to TZIELD, lorigerlimab, ZYNYZ, or any other product candidate’s market acceptance, competition, reimbursement and regulatory actions; future data updates, including timing and results of efficacy and safety data with respect to product candidates in ongoing clinical trials; our ability to provide manufacturing services to our customers; the uncertainties inherent in the initiation and enrollment of future clinical trials; the availability of financing to fund the internal development of our product candidates; expectations of expanding ongoing clinical trials; expectations for the timing and steps required in the regulatory review process; expectations for regulatory approvals; expectations of future milestone payments; the impact of competitive products; our ability to enter into agreements with strategic partners and other matters that could affect the availability or commercial potential of the Company's product candidates; business, economic or political disruptions due to catastrophes or other events, including natural disasters, terrorist attacks, civil unrest and actual or threatened armed conflict, or public health crises; costs of litigation and the failure to successfully defend lawsuits and other claims against us; and other risks described in the Company's filings with the Securities and Exchange Commission. In addition, the forward-looking statements included in this press release represent the Company's views only as of the date hereof. The Company anticipates that subsequent events and developments will cause the Company's views to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so, except as may be required by law. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to the date hereof.  

CONTACTS:
Jim Karrels, Senior Vice President, CFO
1-301-251-5172
info@macrogenics.com

Argot Partners
1-212-600-1902
macrogenics@argotpartners.com

FAQ

What were MacroGenics (MGNX) key financial results for 2024?

MGNX reported $150.0M in revenue, $201.7M in cash position, and a net loss of $67.0M for 2024. The company extended its cash runway into H2 2026.

What is the status of MGNX's LORIKEET Phase 2 study?

The LORIKEET Phase 2 study, testing lorigerlimab with docetaxel in mCRPC patients, has completed enrollment with 150 patients. Clinical updates expected in H2 2025.

Why did MacroGenics discontinue vobra duo development in 2024?

After TAMARACK Phase 2 study results showed median rPFS of 9.5-10.0 months, MGNX decided the efficacy profile didn't justify further investment and is seeking partnership opportunities.

What milestone payments did MGNX receive from the Incyte partnership?

MGNX has received $365.0M in upfront and milestone payments from Incyte and remains eligible for up to $540.0M in additional milestone payments.

What are the terms of MacroGenics' MARGENZA sale to TerSera in 2024?

TerSera paid $40.0M upfront with potential additional sales milestone payments up to $35.0M. MGNX will continue manufacturing MARGENZA drug substance.