MacroGenics Price Target Lowered to $5 at Leerink

Leerink has lowered its price target on MacroGenics to $5 from $8 and maintains an Outperform rating. The firm's thesis is based on potential royalties and milestone payments related to partnered programs and cash. MacroGenics reported Q2 financial results in line with expectations and announced the appointment of Eric Risser as President and CEO.

Title: MacroGenics Reports Q2 2025 Financial Results; Leerink Lowers Price Target

MacroGenics, Inc. (NASDAQ: MGNX), a clinical-stage biopharmaceutical company focused on developing innovative antibody-based therapeutics for the treatment of cancer, reported its financial results for the second quarter ended June 30, 2025. The company also announced the appointment of Eric Risser as President and CEO. Leerink lowered its price target on MacroGenics to $5 from $8 while maintaining an Outperform rating, citing potential royalties and milestone payments related to partnered programs and cash.

Financial Highlights

MacroGenics reported total revenue of $22.2 million for Q2 2025, a 106% increase from $10.8 million in Q2 2024. The company's cash position was bolstered by a $70 million upfront payment from Sagard Healthcare Partners for ZYNYZ® royalties, bringing its total cash and equivalents to $176.5 million as of June 30, 2025. This extends their cash runway through the first half of 2027, providing approximately two years of operational flexibility [1].

The company's net loss for the quarter was reduced to $36.3 million, a 35% improvement from $55.7 million in Q2 2024. This reduction was driven by both revenue growth and disciplined cost management. Research and development (R&D) expenses decreased to $40.8 million from $51.7 million, while selling, general, and administrative (SG&A) expenses dropped to $9.3 million from $14.4 million [1].

Strategic Priorities and Pipeline Progress

Under new CEO Eric Risser, MacroGenics outlined clear strategic priorities focused on advancing key clinical programs while improving capital efficiency. The company's pipeline includes lorigerlimab, a bispecific, tetravalent PD-1 × CTLA-4 DART® molecule, and three antibody-drug conjugates (ADCs) with novel glycan-linked topoisomerase I inhibitor payloads [1].

The ongoing Phase 2 LORIKEET study in metastatic castration-resistant prostate cancer (mCRPC) is particularly noteworthy, with 150 patients randomized to lorigerlimab plus docetaxel versus docetaxel alone. This study is well-powered to detect meaningful clinical differences and represents a significant commercial opportunity if positive [1].

Leerink's Assessment

Leerink's decision to lower its price target to $5 from $8 is based on the company's potential royalties and milestone payments from partnered programs and its cash position. The firm maintains an Outperform rating, indicating a positive outlook on MacroGenics' prospects [1].

Conclusion

MacroGenics' Q2 2025 financial results demonstrate meaningful progress in strengthening its financial position while advancing its antibody-based oncology pipeline. The appointment of Eric Risser as CEO signals a focus on strategic priorities that balance pipeline progression with operational efficiency and partnership strategy. Despite the challenging financing environment for biotech companies, MacroGenics' balanced approach positions it well for future growth.

References

[1] https://www.stocktitan.net/news/MGNX/macro-genics-reports-second-quarter-2025-financial-results-and-nlystnx65wfs.html