What happened
Shares of MacroGenics (MGNX -3.27%) were up 14.5% in early trading Thursday thanks to a strong 2022 earnings report that it released after the market closed Wednesday. The biotech company focuses on monoclonal antibody-based therapeutics to treat cancer. Its stock is down more than 18% over the past 12 months, but up more than 8% so far in 2023.
So what
For the full year, MacroGenics had revenue of $151.9 million, compared to $77.4 million in 2021. It also cut its net loss to $119.8 million, compared to its loss of $202.1 million in 2021. The company's revenues came from sales of breast cancer therapy Margenza, as well as agreements with various collaborators, including a $60 million milestone payment from Provention Bio for the approval of teplizumab in the fourth quarter, and $30 million in milestone payments from Incyte related to progress on retifanlimab, all of which Chief Financial Officer Jim Karrels mentioned in the company's fourth-quarter earnings call.
The fourth quarter was the first profitable quarter for the company since Q4 2017. Its net income was $12.8 million ($0.21 per share), compared to a loss of $58.02 million (a loss of $0.30 per share) in the same quarter a year ago.
Now what
This was also the second consecutive late-week surge for MacroGenics stock. Last week, it rose on Thursday after management announced its sale of royalty interest on Tzield to DRI Healthcare Trust.
Investors will want to see the company follow up this profitable quarter with another. They will also want to see how two crucial clinical trials turn out. MacroGenics began a phase 2 trial of vobramitamab duocarmazine on patients with metastatic castration-resistant prostate cancer (mCRPC) late last year. It also plans a phase 2 study of Lorigerlimab in the second half of 2023 as a combination therapy with docetaxel on mCRPC patients who have not yet had chemotherapy.
