MACROGENICS INC Q4 FY2022 earnings call

• Financial results: Total revenue was $151.9 million in 2022, with MARGENZA net sales and collaborative agreements contributing. R&D and SG&A expenses had changes. Cash balance and runway discussed.
• Clinical programs: Vobra duo's Phase 2 TAMARACK study modified to remove control arm; lorigerlimab showed promising Phase 2 data in mCRPC; MGD024's Phase 1 study ongoing with Gilead collaboration; updates on TZIELD approval and royalty sale to DRI, retaining potential milestones from Provention Bio.

MacroGenics reported total revenue of $151.9 million for the year ended December 31, 2022, primarily from collaborative agreements. MARGENZA net sales were $16.7 million, and contracts manufacturing revenue was $14 million. Research and development expenses were $207 million in 2022, down from $214.6 million in 2021, mainly due to decreased retifanlimab manufacturing costs and discontinued studies, offset by increased costs for vobra duo, discovery projects, and clinical trials. Selling, general and administrative expenses were $58.9 million in 2022, down from $63 million in 2021, primarily due to decreased selling costs for MARGENZA and legal/consulting/stock-based compensation expenses. Net loss was $119.8 million in 2022, compared to $202.1 million in 2021. Cash, cash equivalents, and marketable securities balance as of December 31, 2022, was $154.3 million, and cash runway is anticipated to extend through 2025 with funds from partnerships and the DRI royalty sale.

• Cash runway is expected to extend through 2025 based on $154.3 million cash balance as of Dec 31, 2022, and proceeds from the DRI royalty sale.
• Plans for Phase 2 TAMARACK clinical trial, lorigerlimab Phase 2 study in mCRPC, and combination studies for vobra duo and lorigerlimab.

• Actual results may differ materially from forward-looking statements due to factors in SEC filings.
• Regulatory challenges in clinical trial approvals and product commercialization.
• Market uncertainties related to the success of clinical programs and product sales.

Q: On the TZIELD royalty retention, is the 50% share of royalties on global net sales above a certain threshold still applicable?

A: Yes, MacroGenics retains the right to 50% share of royalties on global net sales above a certain annual threshold, and this could be achievable given Sanofi's confidence in TZIELD sales.

Q: On the lorigerlimab Phase 2 trial dose decision, how was the dose chosen and future dose adjustments?

A: Picked 6 mg per kg as it showed biomarker activity and safety, with a big window for dose selection; may compare doses in future studies as data accumulates.

Q: On the vobra duo Phase 3 trial impact of PLUVICTO, how is it considered?

A: Need to see how PLUVICTO's availability and use impact the design of the subsequent Phase 3 study for vobra duo.