Macrogenics 2025 Q3 Earnings Net Income Plummets 70.1%

Macrogenics’ Q3 2025 results reflected a significant revenue decline but highlighted strategic progress through non-dilutive funding. The company’s net income dropped 70.1% year-over-year to $16.82 million, aligning with management’s focus on operational efficiency and pipeline realignment. Guidance emphasized $75 million in partnership payments by year-end and an extended cash runway through late 2027.

Revenue

Macrogenics reported a 34.2% year-over-year decline in total revenue to $72.84 million for Q3 2025, driven primarily by a sharp reduction in collaborative agreements. Collaborative and other agreements accounted for the largest portion at $53 million, while contract manufacturing contributed $19.84 million. The performance underscores a strategic shift in revenue streams amid pipeline adjustments.

Earnings/Net Income

The company’s EPS fell 70% to $0.27 in Q3 2025, compared to $0.90 in the prior-year period, reflecting the revenue contraction and operational challenges. Net income similarly declined to $16.82 million, down from $56.31 million in 2024 Q3. The significant EPS drop highlights the impact of reduced collaboration income and ongoing R&D expenditures.

Price Action

Following the earnings report, Macrogenics’ stock price fell 3.92% during the latest trading day, despite a 2.08% weekly gain. Month-to-date, shares have declined 10.37%, indicating mixed investor sentiment amid the revenue slump and strategic refocus.

Post-Earnings Price Action Review

The post-earnings price movement reveals a volatile short-term outlook, with the stock experiencing a sharp intraday drop after reporting weaker revenue. While the company’s non-dilutive funding and pipeline realignment efforts aim to stabilize operations, the market remains cautious. Analysts note that the 10.88% pre-market rally on Nov. 13, driven by partnership updates, contrasts with the subsequent pullback, reflecting uncertainty over long-term growth prospects. The stock’s performance will likely hinge on clinical trial updates and the success of ADC programs like MGC026.

CEO Commentary

Eric Risser emphasized progress in securing $75 million in non-dilutive funding from Sanofi and Gilead, alongside operational efficiency initiatives. The CEO outlined a strategic pivot, halting lorigerlimab development in prostate cancer while advancing ovarian trials and ADC programs. These steps aim to extend the cash runway into late 2027 and position the company for transformative therapies.

Guidance

Macrogenics expects $75 million in partnership payments by year-end 2025, with clinical updates on lorigerlimab’s LINNET trial anticipated by mid-2026. The company projects operational efficiency and collaboration revenue to sustain financial stability, extending its cash runway through late 2027. Forward priorities include advancing ADC programs, IND-enabling studies for two new candidates, and strategic partnerships.

Additional News

Recent non-earnings updates include Macrogenics’ 10.88% pre-market stock surge on Nov. 13, attributed to partnership announcements. The company also announced a strategic refocus on ovarian cancer trials for lorigerlimab, signaling a shift from prostate cancer development. Analysts highlighted the $75 million in non-dilutive funding as a key factor in extending the cash runway, with a median price target of $3.00 suggesting potential upside despite near-term volatility.