Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Why MacroGenics Stock Rocketed 70.5% Higher in February

By Beth McKenna - Updated Apr 11, 2019 at 10:40AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Positive results for its breast cancer drug candidate lit a fire under this small-cap biotech.

What happened

Shares of MacroGenics ( MGNX 4.33% ), a clinical-stage biotech focused on the cancer space, soared 70.5% last month, according to data from S&P Global Market Intelligence

For some context, the S&P 500 index returned 3.2% in February.

A pink ribbon, the international symbol of breast cancer awareness.

Image source: Getty Images.

So what 

We can attribute MacroGenics stock's powerful performance last month to the company's Feb. 6 announcement of positive results for its Phase 3 "Sophia" study of its HER2-positive breast cancer treatment drug candidate, margetuximab. Shares escalated following this announcement, closing the day with a 130% gain. 

Patients treated with a combination of MacroGenics' margetuximab and chemotherapy experienced a statistically significant 24% risk reduction in progression-free survival compared to those receiving Roche's Herceptin plus chemotherapy, according to the press release.

Check out the latest earnings call transcript for MacroGenics.

MGNX Chart

Data by YCharts.

Last month's big stock pop was no doubt particularly welcome among MacroGenics investors, given the stock's poor performance over the last year and since its initial public offering in October 2013. 

MGNX Chart

Data by YCharts.

MGNX Chart

Data by YCharts.

Now what

MacroGenics plans on filing for margetuximab's approval with the U.S. Food and Drug Administration in the second half of this year. If approved, the drug should be a huge growth driver for many years, given that MacroGenics has a market cap of just $984 million and the market for drugs to treat HER2-positive breast cancer could be worth up to $10 billion annually by 2025, according to my colleague George Budwell, who quoted a report by GlobalData.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

MacroGenics, Inc. Stock Quote
MacroGenics, Inc.
$17.33 (4.33%) $0.72

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/03/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.