MacroGenics, Inc. Q4 FY2024 earnings call

• 2024 was a year of significant clinical development milestones, with enrollment complete in the LORIKEET Phase 2 trial for lorigerlimab.
• Clinical program updates: lorigerlimab's LINNET Phase 2 study planned for platinum-resistant ovarian cancer and clear cell gynecologic cancer; ADC portfolio updates including MGC026 in Phase 1, MGC028 in Phase 1, and MGC030 in preclinical; T cell engager MGD024 ongoing in Phase 1; vobra duo results from TAMARACK Phase 2 study with decision to discontinue internal development and explore partnering.
• Financial highlights: Revenue increase from Incyte License Agreement, R&D and SG&A expense changes, and cash runway projection based on current cash balance and future partner payments.

MacroGenics reported total revenue of $150 million for the year ended December 31, 2024, compared to $58.7 million in 2023. The increase was primarily from milestones under the Incyte License Agreement. Revenue components included $118.9 million from collaborative and other agreements, $16.4 million margin of net sales, and $13.1 million contract manufacturing revenue. Research and development expenses were $177.2 million in 2024 vs. $166.6 million in 2023, driven by increased costs for certain programs offset by decreased costs from discontinued projects. Selling, general, and administrative expenses were $71 million in 2024 vs. $52.2 million in 2023, due to an amendment fee and increased stock-based compensation. Net loss was $67 million in 2024 vs. $9.1 million in 2023. Cash, cash equivalents, and marketable securities balance as of December 31, 2024, was $201.7 million, with cash runway anticipated to extend into the second half of 2026.

• Anticipates cash runway extending into the second half of 2026 with $201.7 million cash balance as of Dec 31, 2024, plus projected future partner payments.
• Funding requirements related to ongoing studies like the LORIKEET Phase 2 study for lorigerlimab and other clinical/preclinical studies.

• Actual results may differ from forward-looking statements due to various factors including those discussed in the risk factor sections of SEC filings.

Q: On the LINNET study, what are the gating factors to starting? And on the B7-H3 ADC, where are you for dose expansion?

A: With LINNET, it's a small study in a low-standard-of-care area for ovarian cancer, and for MGC026, the Phase 1 study has enrolled well and will select a dose for expansion later this year.

Q: Can you discuss the rationale behind developing lorigerlimab in ovarian and clear cell gynecologic cancers? And when could we see initial clinical data for MGC026?

A: Lorigerlimab is developed for these areas as checkpoint inhibitors have shown limited promise, and MGC026 clinical data is likely to be seen in the latter half of the year.

Q: Given the rPFS data for vobra duo, how does this help clarify the path forward for MGC026? And for the LORIKEET data, should we expect rPFS data or other data?

A: MGC026 is different from vobra duo with a different linker and payload, and LORIKEET data could include ORR even without rPFS data as it's not event-driven.

Q: Can you speak to plans for LINNET in more traditional hot tumors and combinations?

A: LINNET will prioritize studies based on clinical data and competitive landscape, and combinations with other therapeutics are planned for the future.

Q: In the context of LORIKEET, is there disclosable data and what about the highest non-toxic dose for ADCs?

A: ORR data could be disclosable, and ADCs like MGC026 had a non-toxic dose of 50 mgs per kg in primate studies with no toxic dose hit.

Q: On bi-specific MGD024, when could we see data and Gilead's opt-in?

A: The Phase 1 study for MGD024 is slow due to dose escalation, and Gilead's opt-in could be this year but is dependent on trial progress.

Q: On lorikeet's discontinuation rate and learnings for LINNET, and on MGC028 phase 1 and tumor type enrichment?

A: Lorigerlimab is well-tolerated with low discontinuation rate, LINNET learnings include tolerability, and MGC028 Phase 1 just started with tumor type enrichment in adenine-upregulated tumors like pancreatic, lung, and cholangiocarcinoma