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MacroGenics (MGNX)
NASDAQ:MGNX
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MacroGenics
(NASDAQ:MGNX)
52Neutral
Positive Factors
Cash Position
MGNX ended 3Q24 with $200.4M in cash and equivalents, with a cash runway into 2026, inclusive of projected and anticipated future payments from partners and product revenues.
Financing
The sale of global rights to Margenza to TerSera Therapeutics for $40M upfront is viewed positively as it provides non-dilutive financing and allows the company to focus on its pipeline efforts.
Negative Factors
Clinical Setbacks
Clinical setbacks with vobramitamab duocarmazine, MGC026, or lorigerlimab pose a risk to the company's progress.
Development Challenges
Partnering for vobra duo is expected to be difficult based on results from dose-optimization studies in mCRPC.
Leadership Transition
The search for a new CEO indicates a transition period which can add uncertainty to the company's future direction.
MacroGenics (MGNX) vs. S&P 500 (SPY)
Market Cap
$140.28M
Dividend YieldN/A
Average Volume (3M)685.91K
Price to Earnings (P/E)―
Beta (1Y)1.43
Revenue Growth16.68%
EPS Growth-295.28%
CountryUS
Employees339
SectorHealthcare
Sector Strength78
IndustryBiotechnology
Share Statistics
EPS (TTM)-1.57
Shares Outstanding62,763,447
10 Day Avg. Volume543,257
30 Day Avg. Volume685,912
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.02
Price to Cash Flow (P/CF)0.60
P/FCF Ratio0.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$6.17Price Target Upside169.43% Upside
Rating ConsensusHold
Number of Analyst Covering0
MacroGenics Business Overview & Revenue Model
Company DescriptionMacroGenics, Inc. (MGNX) is a clinical-stage biopharmaceutical company focused on discovering and developing innovative monoclonal antibody-based therapeutics for the treatment of cancer. The company's proprietary platforms include Dual-Affinity Re-Targeting (DART) and Fc Optimization, which enhance the ability of antibodies to target and destroy cancer cells. MacroGenics' pipeline includes multiple product candidates in various stages of development, addressing both solid tumors and hematological cancers.
How the Company Makes MoneyMacroGenics generates revenue primarily through collaborative and licensing agreements with other pharmaceutical and biotechnology companies. These partnerships often involve upfront payments, milestone payments contingent on achieving specific development, regulatory, and commercial goals, and royalties on potential future product sales. Additionally, the company may receive revenue from government grants and contracts to support research and development activities. MacroGenics' business model is heavily reliant on the successful advancement of its product candidates through clinical trials and obtaining regulatory approvals, which can lead to commercialization and subsequent revenue generation through product sales and ongoing partnerships.
MacroGenics Financial Statement Overview
Summary
MacroGenics faces profitability challenges despite a strong gross profit margin, with consistent net losses and negative cash flows indicating financial instability. While the balance sheet shows manageable leverage, the negative return on equity and cash burn rates highlight operational inefficiencies and potential sustainability concerns. The company needs to focus on improving operational efficiency and stabilizing cash flows to enhance financial health.Income Statement
The company shows a significant gross profit margin of 91.1% in the TTM period, indicating efficient cost management relative to revenue. However, the net profit margin is deeply negative at -69.1% due to substantial losses, and EBIT and EBITDA margins are also negative, reflecting operational inefficiencies. Revenue growth is inconsistent, with a recent year-over-year decrease from 2022 to 2023.45
Neutral
Balance Sheet
The balance sheet reveals a moderate debt-to-equity ratio of 0.28, indicating manageable leverage levels. However, the return on equity is negative due to consistent net losses. The equity ratio at 45.4% suggests a reasonably strong capital structure, but persistent losses pose risks to equity stability.50
Neutral
Cash Flow
The cash flow statement presents challenges, with negative free cash flow and operating cash flow, indicating cash burns. The operating cash flow to net income ratio is 0.59, showing some ability to convert income into cash, but free cash flow growth remains negative. The company exhibits a reliance on external financing, shown by historical financing cash inflows.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 141.33M | 58.75M | 151.94M | 75.64M | 97.76M | 62.02M | Gross Profit |
| 128.81M | 50.53M | 144.56M | 72.99M | -95.44M | -133.28M | EBIT |
| -107.09M | -168.24M | -121.42M | -202.79M | -131.06M | -177.19M | EBITDA |
| -89.09M | 2.02M | -107.89M | -190.86M | -117.78M | -177.19M | Net Income Common Stockholders |
| -97.62M | -9.06M | -120.02M | -190.86M | -117.78M | -151.81M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 232.86M | 229.81M | 154.35M | 243.62M | 272.53M | 215.76M | Total Assets |
| 332.13M | 298.42M | 280.47M | 335.25M | 378.74M | 312.50M | Total Debt |
| 0.00 | 33.97M | 34.83M | 25.47M | 29.25M | 30.57M | Net Debt |
| -220.13M | -66.98M | -74.05M | -98.00M | -151.88M | -95.90M | Total Liabilities |
| 89.25M | 145.81M | 138.46M | 95.63M | 82.86M | 81.87M | Stockholders Equity |
| 242.88M | 152.61M | 142.01M | 239.62M | 295.88M | 230.63M |
| Cash Flow | Free Cash Flow | ||||
| -61.71M | -79.97M | -90.58M | -150.03M | -117.80M | -138.56M | Operating Cash Flow |
| -58.00M | -78.20M | -86.96M | -143.83M | -111.90M | -134.27M | Investing Cash Flow |
| 146.65M | -80.08M | 70.72M | -36.61M | -7.79M | -79.36M | Financing Cash Flow |
| 1.08M | 150.36M | 1.66M | 122.78M | 174.34M | 119.97M |
MacroGenics Technical Analysis
Negative
2.29
Price Trends
2.86
Negative
3.24
Negative
3.63
Negative
Market Momentum
-0.17
Positive
36.90
Neutral
25.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MGNX, the sentiment is Negative. The current price of 2.29 is below the 20-day moving average (MA) of 2.50, below the 50-day MA of 2.86, and below the 200-day MA of 3.63, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 36.90 is Neutral, neither overbought nor oversold. The STOCH value of 25.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MGNX.
MacroGenics Risk Analysis
MacroGenics disclosed 49 risk factors in its most recent earnings report. MacroGenics reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
MacroGenics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
56 Neutral | $1.84B | 2.82 | 57.29% | ― | 36.07% | ― | |
52 Neutral | $140.28M | ― | -62.17% | ― | 16.68% | -295.28% | |
49 Neutral | $6.90B | -0.08 | -53.01% | 2.43% | 24.84% | -3.06% | |
45 Neutral | $584.67M | ― | -42.91% | ― | ― | 2.90% | |
44 Neutral | $115.17M | ― | -53.54% | ― | 145.37% | 57.01% | |
42 Neutral | $110.00M | ― | -54.21% | ― | -78.55% | -0.92% | |
42 Neutral | $14.08M | ― | -151.46% | ― | -95.23% | -325.89% |
* Healthcare Sector Average
Performance Comparison
MGNX
MacroGenics
2.29
-15.31
-86.99%
AGIO
Agios Pharma
32.13
1.84
6.07%
FATE
Fate Therapeutics
0.96
-6.70
-87.47%
AFMD
Affimed
0.91
-4.38
-82.80%
ADAP
Adaptimmune Therapeutics
0.45
-1.04
-69.80%
KURA
Kura Oncology
7.33
-14.98
-67.14%
MacroGenics Earnings Call Summary
Earnings Call Date: Nov 5, 2024 | % Change Since: -39.26% | Next Earnings Date: Mar 20, 2025
Earnings Call Sentiment Positive
The earnings call reflects strong financial performance with significant revenue growth and a secured cash runway. However, increased expenses and pauses in pipeline development present challenges. Overall, the highlights outweigh the lowlights, indicating a positive outlook.Highlights
Significant Revenue Growth
MacroGenics reported a total revenue of $110.7 million for the quarter ended September 30, 2024, compared to $10.4 million for the same period in 2023, primarily due to $100 million in milestones from Incyte.
Strong Net Income Performance
Net income for the quarter was $56.3 million, a significant increase from $17.6 million in the same quarter the previous year. This includes the $100 million milestone from Incyte.
Cash Runway Secured
The company's cash, cash equivalents, and marketable securities balance stands at $200.4 million, with anticipated additional payments providing a cash runway into 2026.
MARGENZA Transaction
MacroGenics sold global rights to margetuximab (MARGENZA) to TerSera Therapeutics for $40 million upfront, with potential additional sales milestone payments of up to $35 million.
Lowlights
Increased Expenses
Research and development expenses increased to $40.5 million from $30.1 million in the previous year, and selling, general, and administrative expenses increased to $14.1 million from $12.4 million.
Pipeline Challenges and Pauses
The development of vobra duo in alternative tumor types and the Phase I/II dose combination study of vobra duo plus lorigerlimab has been paused pending final assessment of the TAMARACK study data.
Reduction in Cash Balance
The cash balance decreased from $229.8 million as of December 31, 2023, to $200.4 million as of September 30, 2024.
Company Guidance
In the third-quarter earnings call for 2024, MacroGenics provided financial guidance indicating a strong financial position, driven by significant revenue growth to $110.7 million, a substantial increase from $10.4 million in the same quarter of 2023, largely due to a $100 million milestone payment from Incyte. Research and development expenses rose to $40.5 million, influenced by increased costs for the ADC pipeline and the TAMARACK trial. Selling, general, and administrative expenses also increased to $14.1 million, with net income reaching $56.3 million, bolstered by the Incyte milestone. The company reported a cash balance of $200.4 million as of September 30, 2024, with an anticipated $40 million payment from the MARGENZA transaction expected to extend their cash runway into 2026. The company is focused on advancing its clinical-stage assets and preclinical studies, with ongoing assessments on the development of vobra duo and other B7-H3 targeting molecules.MacroGenics Corporate Events
Executive/Board Changes
MacroGenics Announces Leadership Transition in Financial Roles
Neutral
Nov 21, 2024
MacroGenics, Inc. announces the retirement of Lynn Cilinski from her roles as Vice President, Controller, Treasurer, and Principal Accounting Officer, effective January 2, 2025, after over two decades of service. Beth Smith, who has been with the company since 2013 and most recently served as Executive Director of Accounting, will succeed her. The transition marks a notable change in the company’s financial leadership.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.