MacroGenics (MGNX -2.41%), a biotechnology company focused on antibody-based cancer treatments, reported its second-quarter results on August 14, 2025. The release showed GAAP revenue of $22.2 million, which fell well below Wall Street's GAAP projection of $31.7 million. The loss per share (GAAP) was $(0.57), also missing the $(0.42) GAAP EPS expected by analysts. While GAAP revenue more than doubled from the prior-year quarter, the results disappointed due to the complete absence of product sales following the company’s exit from its previous marketed product. Management pointed to lower operating costs as a bright spot, but overall, the quarter reflected difficulties in offsetting lost product revenue and underlined the company’s ongoing strategic transition.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | $(0.57) | $(0.42) | $(0.89) | 36.0 % |
| Revenue (GAAP) | $22.2 million | $31.7 million | $10.8 million | 105.6 % |
| R&D Expenses | $40.8 million | $51.7 million | (21.1 %) | |
| SG&A Expenses | $9.3 million | $14.4 million | (35.4 % decrease) | |
| Cash, Cash Equivalents & Marketable Securities | $176.5 million | N/A | N/A |
Source: Analyst estimates for the quarter provided by FactSet.
Business Overview and Recent Focus
MacroGenics develops monoclonal antibodies and antibody-drug conjugates to treat various forms of cancer. The company builds its business model around advancing clinical candidates through to late-stage development, then partnering or out-licensing these assets to larger firms for commercialization, often in exchange for milestone payments and royalties.
Recently, the company has shifted focus onto its research-stage pipeline, prioritizing lead antibody and next-generation drug candidates. Its success heavily depends on moving these therapies through clinical trials, attracting new partnerships, and securing regulatory approvals. Strategic collaboration and disciplined cost management are crucial, as the company no longer earns direct product revenue following the sale of its former cancer therapy MARGENZA.
Quarter in Review: Revenue Mix, Partnerships, and Cost Controls
During Q2 2025, MacroGenics' total GAAP revenue grew significantly compared to the prior year, driven primarily by contract manufacturing and collaboration income. Contract manufacturing revenue (GAAP) was $15.4 million, up from $2.9 million in Q2 2024, and revenue from collaborations (GAAP) rose to $6.9 million from $2.2 million in Q2 2024. This large increase partially offset the complete loss of product revenue, which dropped from $5.2 million a year ago to zero after the exit from MARGENZA in November 2024. Despite the revenue gains, total GAAP revenue still fell substantially short of analyst forecasts.
The company entered a royalty purchase agreement, assigning future royalties from the cancer immunotherapy ZYNYZ in exchange for a $70 million upfront cash payment from Sagard Healthcare Partners. While this generated immediate liquidity, MacroGenics retains other economic interests in ZYNYZ, including potential future development, regulatory, and commercial milestones. Management reported ongoing clinical collaborations, including with Gilead and Sanofi, that could deliver sizable milestone payments—up to $1.7 billion linked to MGD024 and up to $379.5 million for TZIELD, but these are not guaranteed and timelines remain uncertain.
The GAAP loss per share improved compared to the prior year, as cost controls took effect. Research and development expenses (GAAP) dropped to $40.8 million, primarily due to decreased costs related to vobramitamab duocarmazine development and reduced manufacturing and IND-enabling costs for MGC028. Selling, general, and administrative expenses (GAAP) also decreased to $9.3 million, reflecting lower professional fees and the absence of product commercialization costs.
Cash and investments (GAAP) stood at $176.5 million as of June 30, 2025, down from $201.7 million as of December 31, 2024. The cash burn was offset by the royalty sale but still reflects ongoing net losses (GAAP) and the need for future income sources. Shares outstanding remained stable at 63.2 million as of June 30, 2025, suggesting no near-term dilution. Management indicated it anticipates sufficient funds to operate through the first half of 2027, assuming projected payments from partners and ongoing cost savings.
Pipeline and Key Products
MacroGenics’ strategy centers on advancing a suite of investigational therapies in oncology, focusing especially on molecules with novel mechanisms. Its lead candidate, lorigerlimab—a dual-affinity re-targeting (DART) antibody for prostate and gynecologic cancers—has completed full enrollment in the LORIKEET Phase 2 trial, while the LINNET Phase 2 trial is ongoing. The company plans to present clinical results in the second half of 2025, which could affect future development decisions and potential partnerships.
Other early-stage assets in the pipeline include MGC026 (a B7-H3 antibody-drug conjugate for solid tumors) and MGC028 (an ADAM9 antibody-drug conjugate). MGC028 is in an early-stage clinical trial, with MGC030 expected to enter investigational new drug (IND) submission by 2026. MacroGenics works closely with larger pharmaceutical partners to share risk and raise non-dilutive capital, but most pipeline assets are still in early or mid-stage trials, so financial returns may be several years away.
Looking Ahead: Financial Outlook and Watchpoints
Management did not provide quantitative guidance for revenue or earnings for the remainder of fiscal 2025. However, it stated that, with its current cash balance, anticipated payments from partners, and planned cost reductions, the company expects to maintain funding through the first half of 2027. The next major milestone is a data update from lorigerlimab later in 2025.
Investors and observers should watch for the outcome of critical regulatory milestones with ZYNYZ and TZIELD—which could trigger significant one-time payments if certain approvals are achieved—as well as updates on clinical progress for leading pipeline candidates. The company’s reliance on partnerships and asset monetizations for funding means future revenue streams may vary significantly from quarter to quarter and remain hard to predict.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
