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MacroGenics (MGNX) 5 Nov 24 2024 Q3 Earnings call transcript
AInvestWednesday, Nov 6, 2024 12:43 pm ET
2min read
INCY --
MGNX --

James Karrels and Scott Koenig Discuss Financial Results and Strategic Plans

On October 28, 2024, MacroGenics, a biotechnology company specializing in the development of antibody-based therapeutics, held a conference call to discuss its financial and operational results for the third quarter of the year. The call was led by James Karrels, the Senior Vice President and Chief Financial Officer of MacroGenics, and Scott Koenig, the President and Chief Executive Officer. The discussion provided valuable insights into the company's financial health, strategic plans, and ongoing clinical trials.

Financial Highlights

According to the financial update, MacroGenics reported a total revenue of $110.7 million for the quarter ended September 30, 2024. This significant increase was primarily due to $100 million in milestones received from Incyte related to retifanlimab. Research and development expenses for the same period were $40.5 million, with increased costs attributed to the company's preclinical ADC pipeline and the TAMARACK clinical trial. Selling, general, and administrative expenses were $14.1 million, with the increase mainly due to increased stock-based compensation expense and professional fees. Despite these costs, the company reported a net income of $56.3 million for the quarter ended September 30, 2024.

Clinical Programs and Strategic Plans

Scott Koenig provided an update on MacroGenics' clinical programs, focusing on vobramitamab duocarmazine, or vobra duo, a promising ADC designed to deliver a DNA-alkylating duocarmycin cytotoxic payload to tumors expressing B7-H3. The TAMARACK Phase II study, which is being conducted in mCRPC patients, is closely monitored for adverse events, disease progression, and survival. The primary endpoint is radiographic progression-free survival (rPFS), and the final data is expected to mature no later than early 2025.

The company also highlighted its other clinical molecules targeting B7-H3, such as MGC026, an investigational ADC incorporating a novel topoisomerase 1 inhibitor based linker payload, and enoblituzumab, an Fc-optimized monoclonal antibody. MGC026, which is in a Phase I dose escalation study, is viewed as a complementary approach to vobra duo for targeting B7-H3.

Future Plans and Challenges

MacroGenics also addressed the ongoing LORIKEET study, a randomized Phase II clinical trial of lorigerlimab, its bispecific tetravalent PD-1 x CTLA-4 DART molecule. The study is designed to assess the potential of lorigerlimab in combination with docetaxel versus docetaxel alone in second-line chemotherapy naive and CRPC patients. The primary endpoint is rPFS, and the study is expected to complete enrollment by the end of the year or early in 2025.

The company also touched upon its financial position, emphasizing that the sale of global rights to margetuximab, or MARGENZA, to TerSera Therapeutics, along with the recently received $100 million in milestones from Incyte, has strengthened its financial position. This will enable the company to focus on advancing its clinical stage assets and developing the next wave of early-stage product candidates.

Looking Ahead

In conclusion, MacroGenics' third quarter earnings call highlighted the company's robust financial position, promising clinical programs, and strategic plans for the future. The ongoing clinical trials, particularly the TAMARACK study, hold significant potential for the company's growth and positioning in the competitive landscape. The company's ability to navigate challenges and capitalize on opportunities, along with its commitment to advancing innovative treatments, bodes well for its future success. As MacroGenics moves forward, investors and stakeholders will continue to closely monitor its progress and strategic decisions.

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