MacroGenics Q2 Revenue Declines to $35.7M

TL;DR

MGNX Q2 revenue down to $35.7M from $42.5M YoY. Cash burn likely continues.

AI Summary

MacroGenics Inc. reported its Q2 2024 results, with total revenue for the three months ended June 30, 2024, reaching $35.7 million, a decrease from $42.5 million in the same period of 2023. For the six months ended June 30, 2024, revenue was $69.9 million, down from $83.1 million in the prior year. The company's primary revenue streams include product sales, collaborative agreements, and royalties.

Why It Matters

This filing details MacroGenics' financial performance, indicating a revenue decrease which could impact future research and development funding and strategic decisions.

Risk Assessment

Risk Level: medium — The company's revenue has declined year-over-year, which could signal challenges in product sales or collaborations, impacting its financial stability.

Key Numbers

• $35.7M — Q2 2024 Revenue (Revenue for the three months ended June 30, 2024, down from $42.5M in Q2 2023.)
• $69.9M — Year-to-Date 2024 Revenue (Revenue for the six months ended June 30, 2024, down from $83.1M in the same period of 2023.)

Key Players & Entities

• MacroGenics Inc. (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• $35.7 million (dollar_amount) — Q2 2024 revenue
• $42.5 million (dollar_amount) — Q2 2023 revenue
• $69.9 million (dollar_amount) — Year-to-date 2024 revenue
• $83.1 million (dollar_amount) — Year-to-date 2023 revenue

FAQ

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share MGNX Nasdaq Global Select Ma

Filing Documents

• mgnx-20240630.htm (10-Q) — 788KB
• exhibit31-1q22024.htm (EX-31.1) — 9KB
• exhibit31-2q22024.htm (EX-31.2) — 9KB
• exhibit32-1q22024.htm (EX-32.1) — 4KB
• exhibit32-2q22024.htm (EX-32.2) — 4KB
• 0001125345-24-000148.txt ( ) — 4532KB
• mgnx-20240630.xsd (EX-101.SCH) — 30KB
• mgnx-20240630_cal.xml (EX-101.CAL) — 45KB
• mgnx-20240630_def.xml (EX-101.DEF) — 183KB
• mgnx-20240630_lab.xml (EX-101.LAB) — 468KB
• mgnx-20240630_pre.xml (EX-101.PRE) — 325KB
• mgnx-20240630_htm.xml (XML) — 511KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Consolidated Balance Sheets at June 30, 2024 (unaudited) and December 31, 2023 Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and six months ended June 30, 2024 and June 30, 2023 (unaudited) Consolidated Statements of Stockholders' Equity for the three and six months ended June 30, 2024 and June 30, 2023 (unaudited) Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and June 30, 2023 (unaudited)

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited)

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Controls and Procedures

Item 4. Controls and Procedures

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings

Risk Factors

Item 1A. Risk Factors

Other Information

Item 5. Other Information

Exhibits

Item 6. Exhibits

Signatures

Signatures

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This report includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include statements that may relate to our plans, objectives, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs and other information that is not historical information. Many of these statements appear, in particular, under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in this Quarterly Report on Form 10-Q. Forward-looking statements can often be identified by the use of terminology such as "subject to", "believe", "anticipate", "plan", "expect", "intend", "estimate", "project", "may", "will", "should", "would", "could", "can", the negatives thereof, variations thereon and similar expressions, or by discussions of strategy. All forward-looking statements, including, without limitation, our examination of historical operating trends, are based upon our current expectations and various assumptions. We believe there is a reasonable basis for our expectations and beliefs, but they are inherently uncertain. We may not realize our expectations, and our beliefs may not prove correct. Actual results could differ materially from those described or implied by such forward-looking statements. The following uncertainties and factors, among others (including those set forth under "Item 1A. Risk Factors" of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and "Part II, Item 1A. Risk Factors" of this Quarterly Report on Form 10-Q), could affect future performance and cause actual results to differ materially from those matters expressed in or implied by forward-looking statements: our plans to develop and commercialize our product candidates; the outcomes of our ongoing and planned clinical trials and the tim

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS MACROGENICS, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) June 30, 2024 December 31, 2023 (unaudited) Assets Current assets: Cash and cash equivalents $ 83,932 $ 100,956 Marketable securities 56,440 128,849 Accounts receivable 6,191 10,367 Inventory, net 1,115 1,221 Prepaid expenses and other current assets 9,273 9,946 Total current assets 156,951 251,339 Property, equipment and software, net 20,383 21,847 Operating lease right-of-use assets 22,617 23,846 Other non current assets 1,186 1,386 Total assets $ 201,137 $ 298,418 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 5,236 $ 6,443 Accrued expenses and other current liabilities 24,446 24,239 Deferred revenue 23,818 21,651 Lease liabilities 4,406 3,775 Total current liabilities 57,906 56,108 Deferred revenue, net of current portion 55,503 59,243 Lease liabilities, net of current portion 29,651 30,196 Other non current liabilities 258 258 Total liabilities 143,318 145,805 Stockholders' equity: Common stock, $ 0.01 par value -- 125,000,000 shares authorized, 62,720,969 and 62,070,627 shares outstanding at June 30, 2024 and December 31, 2023, respectively 627 621 Additional paid-in capital 1,267,822 1,254,750 Accumulated other comprehensive loss ( 24 ) ( 6 ) Accumulated deficit ( 1,210,606 ) ( 1,102,752 ) Total stockholders' equity 57,819 152,613 Total liabilities and stockholders' equity $ 201,137 $ 298,418 See notes to consolidated financial statements. 1 MACROGENICS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (unaudited) (in thousands, except share and per share data) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Revenues: Collaborative and other agreements $ 2,065 $ 6,021 $ 3,514 $ 22,708 Product sales, net 5,248 5,062 10,109 8,552 Contract manufacturing 2,893 1,587 5,169 5,202 Royalty revenue 98 — 258 42

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) 1. Nature of Operations Description of the business MacroGenics, Inc. (the Company) is incorporated in the state of Delaware. The Company is a biopharmaceutical company focused on discovering, developing, manufacturing and commercializing innovative antibody-based therapeutics for the treatment of cancer. The Company has a pipeline of product candidates designed to target either various tumor-associated antigens or immune checkpoint molecules. These candidates are being evaluated in clinical trials sponsored by the Company or its collaborators or are in preclinical development. The Company's clinical product candidates include multiple oncology programs which have either been created using its proprietary, antibody-based technology platforms or enabled through its technology licensing arrangements with other companies. The Company believes its product candidates have the potential, if approved for marketing by regulatory authorities, to have a meaningful effect on treating patients' unmet medical needs as monotherapy or, in some cases, in combination with other therapeutic agents. To date, three products originating from the Company's pipeline of proprietary or partnered product candidates have received U.S. Food and Drug Administration (FDA) approval. In March 2021, the Company and its commercialization partner commenced U.S. marketing of MARGENZA (margetuximab-cmkb), a human epidermal growth factor receptor 2 (HER2) antagonist indicated, in combination with chemotherapy, for the treatment of adult patients with metastatic HER2-positive breast cancer who have received two or more prior anti-HER2 regimens, at least one of which was for metastatic disease. In November 2022, the FDA approved TZIELD (teplizumab-mzwv) to delay the onset of Stage 3 Type 1 Diabetes (T1D) in adult and pediatric patients aged 8 years and older with Stage 2 T1D. Teplizumab was acquired from the Company by Provention Bio, Inc. (Proven