MacroGenics(MGNX) - 2025 Q3 - Quarterly Report

Financial Performance - Total revenues for the three months ended September 30, 2025, were $72.839 million, a decrease of 34.2% compared to $110.708 million for the same period in 2024[13] - Collaborative and other agreements revenue was $53.003 million for the three months ended September 30, 2025, down from $101.408 million in the same period last year, representing a decline of 47.8%[13] - The net loss for the nine months ended September 30, 2025, was $60.465 million, compared to a net loss of $51.545 million for the same period in 2024, indicating a worsening of 17.5%[13] - The company reported a comprehensive income of $16.834 million for the three months ended September 30, 2025, compared to $56.347 million for the same period in 2024, a decline of 70.1%[13] - The net income for the three months ended September 30, 2025, was $16.822 million, compared to $56.309 million in the same period of 2024, indicating a decline of 70.1%[83] Cash and Assets - Cash and cash equivalents decreased to $80.129 million as of September 30, 2025, from $182.840 million at December 31, 2024, a decline of 56.1%[12] - Total assets increased to $270.763 million as of September 30, 2025, compared to $261.655 million at December 31, 2024, reflecting a growth of 3.4%[12] - Total liabilities rose significantly to $203.762 million as of September 30, 2025, compared to $145.598 million at December 31, 2024, an increase of 39.9%[12] - Total assets measured at fair value as of September 30, 2025, were $105.773 million, an increase from $102.428 million as of December 31, 2024[35][36] Research and Development - Research and development expenses for the three months ended September 30, 2025, were $32.709 million, down from $40.543 million in the same period last year, a decrease of 19.5%[13] - Research and development expenses for the nine months ended September 30, 2025, totaled $113.198 million, down from $138.304 million in 2024, reflecting a decrease of 18.2%[87] - The company is advancing three proprietary product candidates in clinical development, including lorigerlimab, MGC026, and MGC028[21] Revenue Recognition - The Company recognized $3.3 million in revenue under the Incyte License Agreement during the three months ended September 30, 2025, compared to $0.1 million in the same period of 2024[49] - Cumulative revenue recognized under the Incyte License Agreement totaled $215.0 million for development and regulatory milestones through September 30, 2025[46] - The Company recognized $1.0 million in revenue under the Incyte Commercial Supply Agreement during the three months ended September 30, 2025[50] - The Company recognized $50.0 million in revenue during the three months ended September 30, 2025, related to two regulatory milestones achieved under the Provention APA[66] - Revenue recognized under the 2022 Incyte Manufacturing and Clinical Supply Agreement was $10.5 million and $28.4 million for the three and nine months ended September 30, 2025, respectively[70] Stock and Compensation - The weighted average common shares outstanding for the three months ended September 30, 2025, were 63,233,266, compared to 62,744,005 for the same period in 2024[13] - The company experienced a significant increase in stock-based compensation, totaling $11,625 for the nine months ended September 30, 2025, compared to $18,174 for the same period in 2024[19] - Total stock-based compensation expense for the three months ended September 30, 2025, was $3.548 million, a decrease of 40.5% from $5.970 million in the same period of 2024[75] - The total unrecognized compensation expense related to unvested stock options was approximately $17.3 million, expected to be recognized over 1.3 years[76] - The weighted-average fair value per share of stock options granted in the nine months ended September 30, 2025, was $1.85, significantly lower than $12.79 in 2024[76] Future Outlook - The company anticipates future revenue growth through ongoing collaborations and product development, although specific projections remain uncertain[9] - The company plans to continue drawing upon available sources of capital, including equity and debt instruments, to support product development activities[25] Agreements and Funding - The Company received $70.0 million in cash from Sagard Healthcare Partners under a Royalty Purchase Agreement, which will be amortized over the estimated life of the arrangement[41][42] - The estimated effective interest rate for the Royalty Purchase Agreement was approximately 18.6% as of September 30, 2025[43] - Gilead paid the Company an upfront payment of $60.0 million under the Gilead Agreement, with potential total payments of up to $1.7 billion if options are exercised and products are successfully developed[53] - As of September 30, 2025, $57.1 million in revenue was deferred under the Gilead Agreement, with $1.3 million classified as current and $55.8 million as non-current[58] - The Company received an upfront payment of $10.0 million and is eligible for total fixed payments of $41.7 million under the 2022 Incyte Manufacturing and Clinical Supply Agreement[68] Inventory and Manufacturing - Inventory as of September 30, 2025, consisted of $8.8 million in materials and supplies for manufacturing drug substance[39] - The Company operates a commercial-scale cGMP antibody manufacturing facility to support its clinical programs and provide outsourced services[21] - The Company has contractual commitments under manufacturing-related supplier arrangements totaling $7.1 million as of September 30, 2025[81]