MacroGenics, Inc. Q4 FY2023 earnings call

• Pipeline updates: Vobra duo's TAMARACK Phase 2 study completed enrollment with 177 patients, exceeded target. Lorigerlimab's LORIKEET study ongoing. MGD024 Phase 1 study ongoing. MGC026 Phase 1 dose escalation study initiated. MGC028 expected to submit IND later. Enoblituzumab investigator-sponsored study in prostate cancer.
• Clinical trial progress: TAMARACK study completed enrollment ahead of schedule, LORIKEET study ongoing, MGD024 Phase 1 ongoing, MGC026 Phase 1 initiated, MGC028 preparing for IND submission.

MacroGenics reported total revenue of $58.7 million for the year ended December 31, 2023, compared to $151.9 million in 2022. Revenue components included $29 million from collaborative and other agreements, $17.9 million in MARGENZA net sales, and $9.8 million in contract manufacturing revenue. R&D expenses were $166.6 million in 2023, down from $207 million in 2022, primarily due to decreased manufacturing-related costs for vobra duo and other factors. SG&A expenses were $52.2 million in 2023, down from $58.9 million in 2022. Net loss was $9.1 million in 2023, compared to $119.8 million in 2022. Cash, cash equivalents, and marketable securities balance was $229.8 million as of December 31, 2023, with cash runway expected to extend into 2026.

Cash runway is anticipated to extend into 2026 based on $229.8 million cash balance as of December 2023 and projected future payments. Anticipated funding includes expenditures for Phase 2 TAMARACK trial, LORIKEET study, and other clinical/preclinical studies.

Q: Can you help set expectations for the preliminary TAMARACK data coming up at ASCO? And second, can you discuss the rationale behind expanding the TAMARACK study to include other tumor types?

A: Scott Koenig mentioned expectations for PSA50 reductions, overall response rate, and rPFS. Expansion is based on own data, competitive landscape, and B7-H3 expression in those tumor types Q: Regarding the ASCO abstract, what should we expect to be included? Will preliminary efficacy data also be in the abstract?

A: Scott Koenig said abstract primarily includes safety data, with plan to present efficacy data closer to ASCO time Q: Can you characterize enrollment kinetics in TAMARACK? Was it primarily new sites or experienced sites?

A: Scott Koenig said majority of enrollment in Europe due to newly opened sites after regulatory approval, with rapid enrollment exceeding expectations Q: Thoughts on pivotal path for vobra duo development, monotherapy vs combination?

A: Scott Koenig said still evaluating, considering chemo-naive and experienced populations, and will decide by midyear based on data Q: For MGD-024, when to expect Phase I completion and Gilead's decision timeline?

A: Scott Koenig said MGD-024 Phase I is ongoing, with Gilead having time after full Phase I data to opt in