Macrogenics 2025 Q1 Earnings Misses Targets, Net Loss Improves by 21.4%

Daily EarningsTuesday, May 13, 2025 11:40 pm ET
4min read
Macrogenics (MGNX) reported its fiscal 2025 Q1 earnings on May 13th, 2025. reported a net loss of $41 million in Q1 2025, which did not meet analyst expectations, as they predicted a loss of 61 cents per share. Guidance for the upcoming quarters remains in line with previous expectations. The company's focus on advancing its innovative pipeline, especially the LINNET Phase 2 study, showcases its commitment to addressing unmet medical needs. Despite the revenue miss, Macrogenics is strategically positioned for potential future growth with its clinical advancements.

Revenue

In the first quarter of 2025, Macrogenics experienced a notable increase in total revenue, reaching $13.19 million, a 44.9% rise from $9.10 million in the same period of 2024. This growth was driven by collaborative and other agreements, contributing $7.04 million, and contract manufacturing, which added $6.15 million. Together, these segments played a crucial role in bolstering the company's overall revenue performance.

Earnings/Net Income

Macrogenics narrowed losses to $0.65 per share in 2025 Q1 from a loss of $0.84 per share in 2024 Q1, demonstrating a 22.6% improvement. Meanwhile, the company's net loss decreased to $41.04 million in 2025 Q1, a 21.4% reduction compared to the $52.19 million loss reported in 2024 Q1. Despite the improvement, the EPS still reflects a challenging earnings environment for the company.

Price Action

The stock price of Macrogenics has dropped 4.94% during the latest trading day, climbed 4.76% during the most recent full trading week, and surged 23.20% month-to-date.

Post-Earnings Price Action Review

The strategy of purchasing stock when revenues fall short and holding for 30 days has historically yielded a profit factor of 0.29, with an annualized return on investment of -10.06% from November 9, 2016, to November 9, 2023. Despite recording a total return on investment of -71.86% across 14 trades, the strategy achieved excess returns of 13.86% compared to a buy-and-hold approach. It maintained a low percentage of winning trades at 21.43%, with an average holding period of approximately eight weeks. Although the strategy was not profitable overall, it potentially minimized further losses relative to holding the stock long-term.

CEO Commentary

"In the first quarter, we advanced our innovative pipeline of clinical product candidates. Notably, we dosed the first patient in our Phase 2 LINNET study of lorigerlimab, which will evaluate patients with platinum-resistant ovarian cancer and clear cell gynecologic cancers. We believe lorigerlimab, a differentiated bispecific checkpoint inhibitor, may be uniquely positioned to address the significant unmet need in both indications," said Scott Koenig, M.D., Ph.D., President and CEO of MacroGenics. "We are focused on continued clinical execution this year and look forward to sharing our progress, including a clinical update from the LORIKEET Phase 2 study in the second half of 2025."

Guidance

MacroGenics anticipates sharing a clinical update from the LORIKEET Phase 2 study in the second half of 2025. The company expects to enroll up to 40 patients with platinum-resistant ovarian cancer and up to 20 patients with clear cell gynecologic cancer in the LINNET study. For its proprietary investigational programs, the company plans to initiate dose expansion for MGC026 in selected indications in 2025 and aims to file an Investigational New Drug application for MGC030 in 2026.

Additional News

In recent developments, MacroGenics is advancing its cancer trials, with a significant milestone reached by dosing the first patient in the LINNET Phase 2 study of lorigerlimab for ovarian cancer. The company reported maintaining a robust cash position of $154.1 million as of March 31, 2025, projecting its cash runway into the second half of 2026. Additionally, MacroGenics is progressing its antibody-drug conjugate (ADC) pipeline, including MGC026, currently in Phase 1 dose escalation with expansion planned for 2025. Notable partnerships include ongoing collaborations with Gilead, Incyte, and Sanofi, which could lead to milestone payments based on regulatory decisions expected in H2 2025.