MacroGenics, Inc.

What they do

MacroGenics develops antibody-based cancer therapeutics from proprietary platforms, including antibody-drug conjugates (ADCs) and multi-specific DART and TRIDENT molecules. It has three product candidates in clinical development: lorigerlimab (PD-1/CTLA-4 DART), MGC026 (B7-H3 ADC), and MGC028 (ADAM9 ADC). Three partnered products are FDA-approved: ZYNYZ (out-licensed), MARGENZA (sold to a partner), and TZIELD (sold to a partner). The company previously operated a cGMP antibody manufacturing facility in Maryland and provided contract development and manufacturing services to offset its operating costs; it announced the sale of its manufacturing operations in July 2026.

Revenue drivers

• Collaboration and licensing revenue — Non-dilutive funding from partnerships with Incyte, Sanofi, and Gilead Sciences; over $1.6 billion received since inception in 2000, with up to approximately $2.4 billion in aggregate future milestone payments plus royalties. Includes a recent $10.0 million payment triggered by Gilead's August 2026 option exercise.
• Contract development and manufacturing services (CDMO) — MacroGenics provided outsourced manufacturing services to collaborators and third parties from its Maryland cGMP facility to offset facility operating costs. The company announced the sale of its manufacturing operations in July 2026 for $122.5 million and is transitioning to a fully outsourced model, so this revenue stream is ending.
• Milestone and royalty payments on partnered products — MacroGenics retains economic rights in FDA-approved products it out-licensed or sold, including ZYNYZ, MARGENZA, and TZIELD, and is eligible for milestones and royalties on net sales on these and other partnered programs.

Recent performance

Revenue was $32.8 million in the quarter ended June 30, 2026, up from $20.8 million in the prior quarter but well below the $72.8 million reported for the quarter ended September 30, 2025. Full-year revenue was $149.5 million in 2025, essentially flat versus $150.0 million in 2024. Operating cash flow was negative $81.0 million in 2025. At June 30, 2026, cash and equivalents were $113.9 million, total assets were $345.4 million, total liabilities were $302.5 million, and shareholder equity was $42.9 million. The company reported a pro forma cash, cash equivalents and marketable securities position of $327 million following the manufacturing divestiture.

Strategy

MacroGenics is transitioning to a fully outsourced operating model with an approximately 140-person workforce following the July 2026 sale of its manufacturing operations for $122.5 million, intending to focus on its novel therapeutics pipeline. It is advancing MGC026 in a Phase 1 expansion (a 7.5 mg/kg Q3W dose across SCCHN, endometrial cancer, melanoma and soft tissue sarcoma), MGC028 in dose escalation, and MGC030 in a planned Phase 1. Lorigerlimab continues in the Phase 2 LINNET study in gynecologic cancers, with 20 additional clear cell gynecologic cancer patients enrolling. Management states the restructuring strengthens the balance sheet and extends its cash runway through 2028. The company continues to rely on collaborations with Incyte, Sanofi, and Gilead for milestone and royalty economics.

Risks

• Need for substantial additional funding — MacroGenics has incurred significant losses since inception, expects continued losses, and states it will require substantial additional funding that may not be available on acceptable terms.
• Clinical development uncertainty — The business depends on advancing wholly-owned candidates such as lorigerlimab, MGC026, and MGC028, and drug development is lengthy, expensive, and has a highly uncertain outcome.
• Partial clinical hold on LINNET — The 10-K states no new patients will be enrolled in the LINNET study until a partial clinical hold is lifted by the FDA, though current participants may continue to receive study drug.
• Dependence on collaborations — A meaningful portion of revenue and pipeline value depends on partners including Incyte, Sanofi, and Gilead, and on MacroGenics's ability to achieve milestones and receive related payments.

Outlook

Management says the streamlined operating model and strengthened financial position leave the company well-positioned for a catalyst-rich period, with a pro forma cash runway guided through 2028. Planned catalysts include ESMO 2026 poster presentations for MGC026 and lorigerlimab in October, preliminary MGC028 clinical results in late 2026, a Phase 1 start for MGC030 in the third quarter of 2026, and updated lorigerlimab results in the first half of 2027. The company also recently nominated MGD032, a next-generation T-cell engager, into IND-enabling studies.