MacroGenics has secured $60 million in immediate non-dilutive funding by expanding a royalty agreement with Sagard, bolstering its finances as its stock continues a 94% year-to-date climb.
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MacroGenics Gets $60 Million in Expanded ZYNYZ Royalty Deal
(P1) MacroGenics Inc. received a $60 million upfront cash payment from Sagard in an expanded royalty sale for its cancer therapeutic ZYNYZ, strengthening the biopharmaceutical company's balance sheet amid a period of high cash burn. The deal, announced May 4, gives MacroGenics immediate capital without diluting shareholders.
(P2) "Additional information regarding the expanded royalty purchase agreement is provided in a Current Report on Form 8-K filed by MacroGenics with the U.S. Securities and Exchange Commission," the company said in a statement.
(P3) Under the amended agreement, MacroGenics is also eligible for a sales-based milestone payment of up to $20 million in 2026. The deal builds on an initial royalty agreement from June 2025. All royalty rights on the drug, which was licensed to and is marketed by Incyte Corp., will revert to MacroGenics after Sagard receives 1.7 times its investment by Sept. 30, 2032, or 2.0 times its investment at any time thereafter.
(P4) The $60 million infusion provides MacroGenics with crucial non-dilutive capital to fund its pipeline development. While InvestingPro data shows the company holds more cash than debt, its high cash burn rate makes such financing deals critical to sustaining operations and advancing other clinical trials, such as its recently resumed study for lorigerlimab.
The financing comes as shares of the Rockville, Maryland-based company (NASDAQ:MGNX) have surged 94% year-to-date, closing at $3.13 on May 1. The agreement with Sagard, a global alternative asset manager with over $45 billion in assets, underscores a strategy of monetizing assets to fund ongoing research and development.
ZYNYZ (retifanlimab-dlwr) is a PD-1 inhibitor approved for treating rare cancers, including certain types of anal cancer and Merkel cell carcinoma. The drug was originally developed by MacroGenics before being licensed to Incyte in a 2017 deal. MacroGenics retains other economic interests, including potential future milestone payments from Incyte.
The market has responded positively to recent company developments. In April, B. Riley upgraded the stock to Buy from Neutral, tripling its price target to $9. Earlier that month, the U.S. Food and Drug Administration lifted a partial clinical hold on the company's Phase 2 study of lorigerlimab in gynecologic cancers, allowing new patient enrollment to resume.
This article is for informational purposes only and does not constitute investment advice.
[1] MacroGenics and Sagard Healthcare Partners Enter into Expanded ZYNYZ® Royalty Purchase Agreement[2] MacroGenics and Sagard Healthcare Partners Enter into Expanded ZYNYZ® Royalty Purchase Agreement - The Manila Times[3] Macrogenics and Sagard Healthcare Partners enter into expanded Zynyz® Royalty Purchase Agreement - marketscreener.com[4] MacroGenics expands royalty deal with Sagard for $60M By Investing.com - Investing.com Canada
