Shares of MacroGenics (MGNX 9.18%) had sunk 13.4% lower at 10:50 a.m. ET on Friday. The decline came after the biopharmaceutical company provided its fourth-quarter update following the market close on Thursday.
MacroGenics announced only its 2021 full-year results. However, comparing those results with its third-quarter numbers showed that the company posted a net loss of $0.95 per share. The consensus estimate had been for MacroGenics to deliver a net loss of $0.81 per share.
The company generated nearly $14.2 million in revenue in the fourth quarter of 2021. This result was well below revenue of $52.7 million in the prior-year period and also came in below analysts' expectations.
In addition, MacroGenics revealed that its partner, Zai Lab, recently told the company that it is halting enrollment in Module B of the Mahogany study evaluating margetuximab in treating gastric cancer. Zai stated that the decision was based on a review "of both the clinical data and the changing treatment landscape."
Big earnings misses often cause biotech stocks to fall. MacroGenics' problem was primarily the result of lower collaboration revenue combined with increased spending on its pipeline and the launch of Margenza (margetuximab) in treating metastatic HER2-positive breast cancer.
The company's announcement about Zai discontinuing enrollment in Module B of the Mahogany study wasn't really surprising. MacroGenics announced in November that enrollment in Module A of the study had been stopped.
MacroGenics has potential catalysts on the way. Zai awaits an approval decision by Chinese regulatory authorities for margetuximab in treating HER2-positive breast cancer. Another partner, Provention Bio, hopes to win U.S. approval of teplizumab in delaying clinical type 1 diabetes.