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MI

MACROGENICS INC (MGNX)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 capped a transitional year: MacroGenics fully enrolled the 150‑patient LORIKEET Phase 2 (lorigerlimab + docetaxel in mCRPC), announced plans to initiate the LINNET Phase 2 in ovarian and clear-cell gynecologic cancers by mid‑2025, advanced multiple TOP1i‑based ADCs (MGC026, MGC028, MGC030), and discontinued further internal development of vobra duo while exploring partnering .
  • Financially, FY 2024 revenue rose to $150.0M vs $58.7M in FY 2023, driven by $85.0M higher milestone revenue from Incyte; cash, cash equivalents and marketable securities were $201.7M at year‑end and runway extended into the second half of 2026 .
  • Q4 2024 actuals missed Street: revenue $19.4M* vs $34.2M* consensus and EPS −$0.82* vs −$0.30* consensus; FY 2024 EPS was −$1.65* vs −$1.13* consensus (estimates from S&P Global) [Values retrieved from S&P Global].
  • Strategic actions (MARGENZA sale to TerSera for $40M upfront; retifanlimab (ZYNYZ) sBLA filed for SCAC with FDA approval anticipated H2 2025) support liquidity and pipeline focus; near‑term catalysts include LORIKEET ORR/rPFS update and MGC026 dose‑expansion initiation in 2025 .

What Went Well and What Went Wrong

What Went Well

  • Completed LORIKEET enrollment (150 patients; 2:1 randomization) with management indicating potential to disclose ORR and possibly rPFS in H2 2025: “We anticipate providing a clinical update for LORIKEET in the second half of this year” .
  • ADC portfolio execution: Phase 1 for MGC026 ongoing; first patient dosed in MGC028 Phase 1; MGC030 targeted for IND in 2026 .
  • Strengthened balance sheet: FY revenue $150.0M (+$91.3M YoY) largely from Incyte milestones; MARGENZA sale generated $40.0M upfront (with up to $35.0M milestones) and $36.3M gain recognized; cash runway guided into H2 2026 .

What Went Wrong

  • Q4 missed consensus: revenue $19.4M* vs $34.2M*; EPS −$0.82* vs −$0.30* (Street), reflecting lower quarterly revenue run‑rate ex‑milestones and elevated R&D/SG&A tied to ADC and lorigerlimab programs and CEO transition costs [Values retrieved from S&P Global] .
  • Vobra duo’s TAMARACK results (mature median rPFS 9.5–10.0 months) did not justify further internal investment; program shifted to partnering despite consistent safety, indicating efficacy profile below internal bar for continued funding .
  • FY 2024 net loss widened to $(67.0)M vs $(9.1)M in FY 2023, reflecting higher R&D and SG&A and absence of prior royalty monetization gains; basic/diluted net loss per share was $(1.07) vs $(0.15) in FY 2023 .

Financial Results

Quarterly Revenue and EPS vs Prior Quarters and Q4 Consensus

MetricQ2 2024Q3 2024Q4 2024 (Actual)Q4 2024 (Consensus)*
Revenue ($USD Millions)$10.8 $110.7 $19.4* [Values retrieved from S&P Global]$34.2* [Values retrieved from S&P Global]
Diluted EPS ($USD)$(0.89) $0.90 $(0.82)* [Values retrieved from S&P Global]$(0.30)* [Values retrieved from S&P Global]

Note: Asterisks indicate values retrieved from S&P Global.

Annual Comparison (FY)

MetricFY 2023FY 2024
Total Revenues ($USD Millions)$58.7 $150.0
Net Loss ($USD Millions)$(9.1) $(67.0)
Basic/Diluted Net Loss per Share ($USD)$(0.15) $(1.07)
Cash, Cash Equivalents & Marketable Securities ($USD Millions)$229.8 $201.7

Revenue Composition (FY 2024)

CategoryFY 2024 ($USD Thousands)
Collaborative & Other Agreements$118,856
Product Sales, net$16,426
Contract Manufacturing$13,057
Government Agreements$1,623
Total Revenues$149,962

KPIs

KPIQ2 2024Q3 2024Q4 2024
Cash, Cash Equivalents & Marketable Securities ($USD Millions)$140.4 $200.4 $201.7
Shares Outstanding (Common)62,720,969 62,763,120 62,819,857
Cash Runway GuidanceInto 2026 Into 2026 Into H2 2026

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Cash RunwayCompany-wideInto 2026 (Q2/Q3 2024) Into H2 2026 Raised/Extended
LORIKEET Update (lorigerlimab + docetaxel)H2 2025Clinical update in H1 2025 (Q3 2024) Clinical update in H2 2025 Deferred timing
LINNET Initiation (lorigerlimab monotherapy; PROC/CCGC)Mid‑2025Not previously guidedInitiate by mid‑2025; enroll up to 40 PROC and 20 CCGC; primary endpoint ORR New guidance
Vobra Duo2025+Await mature rPFS early 2025 to assess path (Q3 2024) Discontinued internal development; exploring partnering Lowered/Exited
MGC026 (B7‑H3 TOP1i ADC)2025Phase 1 ongoing; data in 2025 (Q3 2024) Dose expansion expected to initiate in 2025 Maintained/clarified
MGC028 (ADAM9 TOP1i ADC)2025IND submitted Oct 2024; Phase 1 to start First patient dosed; Phase 1 underway Raised (executed)
Retifanlimab (ZYNYZ)H2 2025Positive Ph3 topline (Jul 2024) sBLA filed Dec 2024; FDA approval anticipated H2 2025 Maintained timeline

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 & Q3 2024)Current Period (Q4 2024)Trend
LORIKEET (lorigerlimab + docetaxel in mCRPC)Enrollment ongoing; complete late 2024/early 2025; planned H1 2025 update Enrollment complete; H2 2025 clinical update; ORR potentially disclosed before rPFS Timing shifted later; still a core catalyst
LINNET (lorigerlimab monotherapy in PROC/CCGC)Not highlightedInitiation by mid‑2025; ORR primary endpoint; up to 60 patients New trial broadening IO footprint
ADCs (MGC026, MGC028, MGC030)MGC026 Phase 1 ongoing; MGC028 IND submitted; MGC030 preclinical MGC026 dose expansion expected 2025; MGC028 first patient dosed; MGC030 IND planned 2026 Execution momentum
Vobra Duo (B7‑H3 ADC)Await mature rPFS early 2025; paused combo with lorigerlimab Mature rPFS 9.5–10.0 months; discontinue internal development; partner search Strategy pivot (deprioritized)
MGD024 (CD123×CD3) & Gilead OptionPhase 1 dose escalation ongoing; option at predefined points Slow, methodical escalation per FDA; nearing higher dose; opt‑in could be 2025 Steady progress
Business Development & Cash$100M Incyte milestones; MARGENZA sale expected Q4 MARGENZA sale closed (gain $36.3M, $40M upfront); runway H2 2026 Liquidity solidified
LeadershipCEO transition announced Oct 2024 Board conducting search; CEO supportive during transition Transition underway

Management Commentary

  • “We have a diverse and promising clinical portfolio, and we look forward to a year of continued progress.” — Scott Koenig, President & CEO .
  • “Enrollment is complete in the ongoing LORIKEET Phase 2… We anticipate providing a clinical update… in the second half of this year.” — Stephen Eck, CMO .
  • “We have decided not to pursue further internal development of vobra duo and are exploring potential alternatives for partnering… We believe the B7‑H3 target continues to have potential…” — Scott Koenig .
  • “The nondilutive capital from [MARGENZA sale] deal, along with $100 million received from Incyte during the year has allowed us to continue to invest in our clinical pipeline and R&D efforts.” — Scott Koenig .

Q&A Highlights

  • Lorigerlimab rationale in ovarian/gynecologic cancers: targeting dual PD‑1/CTLA‑4 TILs may differentiate on efficacy and toxicity versus traditional CTLA‑4 combinations; ORR disclosure possible ahead of rPFS given event‑driven nature .
  • Vobra duo to MGC026 path: distinct linker/payload (TOP1i) may avoid vobra toxicities (e.g., pleural effusions) and broaden activity; indications for dose expansion will be guided by emerging Phase 1 data and competitive landscape .
  • LORIKEET event accrual: too early to comment; 2:1 randomization, fully enrolled; potential for rPFS events in H2 2025, with ORR updates feasible before rPFS trigger .
  • MGD024 timing: slow, incremental dose escalation per FDA; nearing higher dose levels; Gilead option could come once sufficient Phase 1 data accrue .
  • ADC preclinical safety: primate highest non‑toxic dose ~50 mg/kg for both MGC026 and MGC028, suggesting favorable TI before human dose selection .

Estimates Context

  • Q4 2024 comparison: Revenue $19.4M* vs $34.2M* consensus (miss); EPS −$0.82* vs −$0.30* (miss). FY 2024 EPS −$1.65* vs −$1.13* consensus (miss). Primary EPS estimates count: 7; Revenue estimates count: 6 [Values retrieved from S&P Global].
  • Implications: The quarterly miss reflects lumpy milestone timing and ongoing R&D/SG&A load; estimate models may need to lower near‑term revenue run‑rate and widen loss per share until LORIKEET/ADC catalysts materialize [Values retrieved from S&P Global] .

Financial Tables: Additional Detail

Q4 Actual vs Consensus (S&P Global)

MetricQ4 2024 Actual*Q4 2024 Consensus*Surprise
Revenue ($USD)$19,353,000* [Values retrieved from S&P Global]$34,174,000* [Values retrieved from S&P Global]−$14,821,000 (−43%)
Primary EPS ($USD)−$0.818* [Values retrieved from S&P Global]−$0.301* [Values retrieved from S&P Global]−$0.517

Note: Asterisks indicate values retrieved from S&P Global.

Selected Operating Items (FY 2024)

ItemFY 2024 ($USD Thousands)Commentary
R&D Expenses$177,194 Increased for MGC028, preclinical ADCs, lorigerlimab
SG&A Expenses$71,047 Includes $8.0M amendment fee tied to MARGENZA sale and CEO transition costs
Gain on Sale (MARGENZA)$36,250 Monetization supports liquidity
Total Costs & Expenses$260,540 Reflects pipeline investment

Key Takeaways for Investors

  • Near‑term stock catalysts: LORIKEET data (ORR and possibly rPFS) in H2 2025; clarity on ADC MGC026 dose expansion indications; initial MGC028 Phase 1 read‑throughs; any MGD024 update/option from Gilead .
  • Strategic pivot lowers vobra duo cash burn while preserving B7‑H3 strategy via MGC026; partnering outcome for vobra duo could provide upside optionality with limited opex burden .
  • Liquidity runway into H2 2026 reduces financing overhang through key clinical inflection points; continued partner milestones (e.g., retifanlimab) can further de‑risk cash needs .
  • Estimate resets likely to reflect milestone lumpiness and R&D cadence; watch for Street revisions post Q4 miss and updated timelines (LORIKEET shift from H1 to H2 2025) [Values retrieved from S&P Global] .
  • Medium‑term thesis combines differentiated IO (lorigerlimab) and ADC platforms (TOP1i payloads) across multiple solid tumors; execution on dose expansion selection and safety/efficacy signals will drive valuation re‑rating potential .
  • Business development (MARGENZA divestiture, potential vobra duo partner) demonstrates capital discipline and portfolio focus; additional non‑dilutive inflows are plausible .
  • Leadership transition underway but continuity emphasized; CEO and Board framing an orderly handoff amid pipeline milestones .

Sources: MacroGenics Q4 2024 press release and 8‑K ; Q4 2024 earnings call transcript –; Q3/Q2 2024 press releases and 8‑Ks – –; MARGENZA sale press release ; Leadership transition press release .
Estimates: Values retrieved from S&P Global (Primary EPS Consensus Mean, Revenue Consensus Mean, counts of estimates).