Small cap biotechnology stock MacroGenics (NASDAQ: MGNX) announced first quarter 2020 financial results after the market close on May 5th. Revenue rose 41% to $13.7 million compared to $9.7 million in the same period last year. Revenue was primarily generated from collaborative agreements with U.S. pharmaceutical company Incyte and Chinese biopharmaceutical company Zai Lab in addition to milestone payments received from Zai Lab related to clinical initiations in China.
The company posted a slightly narrower net loss of $44.7 million compared to the $45 million loss that was recorded in the first quarter of 2019. This was driven by the higher revenue level as R&D expenses increased to $48.9 million and G&A expenses were flat at $10.2 million.
President and CEO Dr. Scott Koenig said, “We are encouraged by the progress and clinical activity that we continue to observe across our broad portfolio of seven antibody-based product candidates, and we anticipate clinical data from all these molecules this year.”
MacroGenics SEC Filings
Cash Runway Extends to 2022
MacroGenics is a biopharmaceutical company that develops monoclonal antibody-based therapies for cancer treatment. It combines its suite of technology platforms with its protein engineering capabilities to create various cancer drug candidates in partnering with several global pharmaceutical and biotechnology companies.
The company exited the quarter with a cash position of $170.8 million which was $45 million less than the December 31st cash balance. Despite the lower cash amount, management stated that it expects to be able to fund its operations into 2022. This is based on the assumption that MacroGenic’s programs and collaborations advance as anticipated and all associated payments are received. The Maryland-based company has generated more than $525 million in revenues from collaborative and government agreements since its 2013 IPO.
Looking ahead
MacroGenics expects to present clinical data on several drugs at the annual meeting of the American Society of Clinical Oncology (ASCO) later this month. This includes data from the ongoing phase 1 study of solid tumor treatment MGD013. Data from the phase 1 trial of solid tumor therapy MGC018 will also be presented. Finally, results are expected from the phase 3 SOPHIA study involving the use of margetuximab with chemotherapy in patients with metastatic breast cancer. In the second half of the year, the company anticipates further data releases around these studies as well as data from its gastric cancer and anal cancer drug trials.
There are many growth opportunities ahead for MacroGenics with seven drugs in its pipeline five of which have reached at least phase two. The products address a variety of potential indications including solid tumors, heme malignancies, breast cancer, and stomach cancer. Management provided several positive trial updates during the quarterly conference call which bode well for MacroGenics’ broad antibody-based therapy portfolio.
Shares of MacroGenics skyrocketed over 200% to $24.55 in very heavy trading volume in response to the better than expected first quarter results and pipeline progress.
