MacroGenics — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for the quarter ended September 30, 2026, was $18.7 million, a decrease from $53.0 million in the same period of 2025.
• Collaborative and other agreement revenue was $10.1 million for the quarter, down from $49.7 million in the prior year period.
• Royalty revenue was $8.6 million for the quarter, an increase of $5.3 million from $3.3 million in the prior year period.
• Research and development expenses were $30.6 million for the quarter, compared to $32.7 million in the prior year period.
• General and administrative expenses were $8.4 million for the quarter, compared to $9.9 million in the prior year period.
• Net loss was $20.1 million for the quarter, compared to net income of $16.8 million in the prior year period.
• Cash, cash equivalents, and marketable securities totaled $287.7 million as of September 30, 2026, compared to $189.9 million as of December 31, 2025.
• Deferred revenue was $55.5 million as of September 30, 2026, compared to $56.8 million as of December 31, 2025.
• Total stockholders' equity was $25.2 million as of September 30, 2026, compared to $55.6 million as of December 31, 2025.
• Shares of common stock outstanding were 63,875,835 as of September 30, 2026.

Guidance and Future Outlook:

• The Company anticipates its cash position, combined with projected and anticipated future partner payments, will support a cash runway through 2028.
• MacroGenics plans to initiate a randomized evaluation of two dose levels for MGC028 in its lead indication by the end of 2026.
• The Company expects to complete enrollment of the 40-patient SCCHN cohort for MGC026 by the end of 2026, with updated data expected in mid-2027.
• Interim clinical updates for MGC028, including efficacy and safety results in the lead indication, are expected in the first half of 2027.
• Enrollment for 20 CCGC patients for lorigerlimab is expected to be completed by the end of 2026, with updated results reported in the first half of 2027.
• Management expects 2027 to be a year of important milestones with multiple opportunities to demonstrate pipeline potential.

Business Segments and Product Lines:

• MGC028 (ADAM9-targeting ADC): Phase 1 dose escalation completed; no dose-limiting toxicities, ILD, or ocular toxicity reported as of October 10, 2026.
• MGC026 (B7-H3-targeting ADC): Interim Phase 1 results reported at ESMO 2026 showing encouraging efficacy and manageable safety in heavily pretreated SCCHN patients.
• MGC030 (Undisclosed antigen-targeting ADC): First patient dosed in Phase 1 study for advanced solid tumors following IND clearance.
• Lorigerlimab (PD-1 × CTLA-4 bispecific): Interim Phase 2 results reported at ESMO 2026 showing encouraging preliminary clinical activity in clear cell gynecologic cancer (CCGC) at 6 mg/kg Q3W.
• MGD032 (Next-generation TCE): Advancing in IND-enabling studies against an undisclosed target.
• The Company generated approximately $290 million in non-dilutive capital over the past 12 months.

Market and Competitive Landscape:

• The Company is evaluating the evolving competitive landscape for MGC026 and reviewing development and collaboration strategies for the molecule.
• MGC028 targets ADAM9, a protein overexpressed in multiple solid tumors.
• MGC026 targets B7-H3, expressed across the tumor microenvironment including tumor-associated stroma and vasculature.
• MGC030 targets an undisclosed antigen expressed across several solid tumors, including urothelial, colorectal, gastric, gastroesophageal junction, esophageal, and pancreatic cancers.

Risks and Challenges:

• Forward-looking statements highlight risks related to the reproducibility of results, market acceptance, competition, reimbursement, and regulatory actions.
• Risks include uncertainties in clinical trial initiation and enrollment, availability of financing, and the timing of regulatory approvals.
• Specific risks include the impact of competitive products, the ability to enter into strategic partner agreements, and risks associated with the transition of CDMO operations following the sale of GMP manufacturing operations.

Management Commentary and Tone:

• CEO Eric Risser stated the Company has strengthened its business, sharpened pipeline priorities, and delivered on key strategic objectives.
• Management expressed gratitude to employees and partners and noted the Company is well-positioned for 2027 milestones while maintaining a disciplined approach to capital allocation.
• The tone reflects confidence in the pipeline's potential and the sufficiency of the current cash runway.

Other Key Points:

• The Company appointed two new independent directors, Emil Kuriakose, M.D., and Michael Vasconcelles, M.D., in late October 2026, both with extensive oncology drug development experience.
• Gilead Sciences exercised its option to license a preclinical bispecific program under the 2022 collaboration agreement, triggering a $10.0 million payment to MacroGenics.
• The Company received $119.6 million in cash consideration from Bora in connection with the sale of its GMP manufacturing operations during the third quarter.
• A $24.5 million regulatory milestone payment was received from Sanofi during the quarter.
• The decrease in revenue was primarily due to $50.0 million in milestone revenue recognized in 2025 under the Provention (Sanofi) Asset Purchase Agreement, compared to $10.0 million recognized in 2026 from the Gilead option exercise.
• The decrease in R&D expenses was driven by lower costs for lorigerlimab, vobramitamab duocarmazine, MGC030 manufacturing, and certain preclinical ADCs, partially offset by increased costs for MGC026, MGC028, MGC030 clinical activities, and next-generation T-cell engagers.
• The decrease in G&A expenses was primarily due to lower personnel-related costs, including stock-based compensation expense.