MacroGenics, Inc. (MGNX): Business Model Canvas [11-2024 Updated]

In the competitive landscape of biotechnology, MacroGenics, Inc. (MGNX) stands out with its innovative approach to developing antibody-based therapeutics aimed at treating various cancers. This blog post delves into the Business Model Canvas of MacroGenics, highlighting key partnerships, activities, and value propositions that drive its success. Discover how this company is navigating the complexities of the biotech industry through strategic collaborations and a robust product pipeline.

MacroGenics, Inc. (MGNX) - Business Model: Key Partnerships

Collaborations with Incyte for retifanlimab development

MacroGenics has established significant partnerships with Incyte, particularly concerning the development of retifanlimab. In January 2022, a Manufacturing and Clinical Supply Agreement was initiated, which included an upfront payment of $10.0 million. Additionally, MacroGenics is set to receive annual fixed payments totaling $19.5 million over the agreement's lifespan. The partnership also allows for reimbursement of materials used in manufacturing processes.

The revenue recognized from services performed under this agreement was $3.8 million for the three months ended September 30, 2024, and $8.1 million for the nine months ended September 30, 2024.

Year	Revenue Recognized (USD)	Deferred Revenue (USD)
2024 (Q3)	3,800,000	4,600,000
2024 (9 months)	8,100,000	7,000,000

Agreements with Gilead Sciences for research programs

MacroGenics has entered into an exclusive option and collaboration agreement with Gilead Sciences to develop MGD024, a bispecific antibody. The initial transaction price for this agreement was set at $60.0 million, including a non-refundable upfront payment. Gilead has the right to exercise an option for an exclusive license, which could significantly impact future revenues and development timelines.

As of September 30, 2024, MacroGenics recorded $0.4 million in revenue from the Gilead agreement for both the three-month and nine-month periods. The agreement also includes potential milestone payments and royalties, which could add substantial value to the partnership over time.

Year	Revenue Recognized (USD)	Deferred Revenue (USD)
2024 (Q3)	400,000	57,400,000
2024 (9 months)	900,000	58,300,000

Partnerships with government entities for funding and research support

MacroGenics has also engaged in partnerships with government entities, such as the National Institute of Allergy and Infectious Diseases (NIAID). The total funded contract value under the NIAID contract reached $25.1 million as of September 30, 2024. This contract supports the development of DART molecules for clinical trials targeting HIV, showcasing the company's commitment to advancing therapeutic solutions through public sector collaborations.

For the three months ended September 30, 2024, MacroGenics recognized $0.6 million in revenue under the NIAID contract, with a total of $1.4 million recognized for the nine months ended September 30, 2024.

Year	Revenue Recognized (USD)	Total Funded Contract Value (USD)
2024 (Q3)	600,000	25,100,000
2024 (9 months)	1,400,000	25,100,000

MacroGenics, Inc. (MGNX) - Business Model: Key Activities

Research and development of antibody-based therapeutics

The primary focus of MacroGenics is on research and development (R&D) of antibody-based therapeutics, particularly in the oncology space. For the three months ended September 30, 2024, MacroGenics reported a total research and development expense of $40.5 million, which represents a 35% increase compared to $30.1 million for the same period in 2023. For the nine months ended September 30, 2024, R&D expenses totaled $138.3 million, up from $119.2 million in 2023, marking a 16% increase.

Key R&D programs include:

• Vobramitamab duocarmazine: $10.5 million for Q3 2024, up 62% from $6.5 million in Q3 2023.
• Lorigerlimab: $6.3 million for Q3 2024, a slight increase from $6.2 million in Q3 2023.
• Preclinical antibody-drug conjugates (ADCs): $5.5 million for Q3 2024, significantly up from $1.5 million in Q3 2023.
• MGC028: $4.3 million for Q3 2024, up from $4.1 million in Q3 2023.
• MGD024: $2.3 million for Q3 2024, an increase from $1.2 million in Q3 2023.

Clinical trials for oncology programs

MacroGenics actively conducts clinical trials for its oncology programs. The company’s commitment to advancing its clinical pipeline is evidenced by increased expenditures. For the nine months ended September 30, 2024, clinical trial costs related to lorigerlimab and MGD024 have surged due to expanded trial activities. The company is also engaging in trials for its next-generation T-cell engagers and other investigational drugs in the oncology space.

The following table summarizes the clinical development costs for select programs:

Program	Q3 2024 Expense (million $)	Q3 2023 Expense (million $)	Change (%)
Vobramitamab duocarmazine	10.5	6.5	62
Lorigerlimab	6.3	6.2	2
Preclinical ADCs	5.5	1.5	267
MGC028	4.3	4.1	5
MGD024	2.3	1.2	92

Manufacturing and commercialization of approved products

MacroGenics has also established a robust manufacturing and commercialization strategy for its approved products. The cost of manufacturing services for the three months ended September 30, 2024, was $1.7 million, a decrease from $3.3 million in the same period of 2023. For the nine months ended September 30, 2024, the cost was $6.2 million compared to $7.6 million for the same period in 2023.

The company’s revenue sources include:

• Collaborative agreements: $101.4 million in Q3 2024, a remarkable increase from $0.9 million in Q3 2023.
• Product sales, net: $4.2 million in Q3 2024, down from $4.7 million in Q3 2023.
• Contract manufacturing: $4.5 million in Q3 2024, unchanged from Q3 2023.
• Government agreements: $0.6 million in Q3 2024, up from $0.3 million in Q3 2023.

The total revenue for MacroGenics for the three months ended September 30, 2024, was $110.7 million, compared to $10.4 million for the same period in 2023, driven by milestone payments under the Incyte License Agreement.

MacroGenics, Inc. (MGNX) - Business Model: Key Resources

Proprietary technology platforms for drug development

MacroGenics utilizes proprietary technology platforms, including its DART (Dual-Affinity Re-Targeting) platform, to develop innovative antibody-based therapeutics. This technology enables the creation of bispecific antibodies, which can target multiple antigens simultaneously, enhancing the efficacy of treatments for various cancers.

Experienced team in clinical and regulatory processes

MacroGenics boasts a highly experienced team specializing in clinical development and regulatory affairs. This team is crucial for navigating the complex regulatory landscape and ensuring that clinical trials are designed and executed effectively. In the nine months ended September 30, 2024, the company reported a research and development expense of $138.3 million, reflecting its commitment to advancing clinical programs.

Financial resources from equity offerings and collaborations

MacroGenics has established significant financial resources through various equity offerings and collaborations. For instance, in September 2024, the company completed a $40 million agreement related to the sale of MARGENZA, alongside potential sales milestone payments of up to $35 million. Additionally, the company reported total revenues of $110.7 million for the three months ended September 30, 2024, a substantial increase attributed to milestone payments received under collaboration agreements.

Key Financial Metrics	Q3 2024	Q3 2023
Total Revenues	$110.7 million	$10.4 million
Research and Development Expense	$40.5 million	$30.1 million
Net Income (Loss)	$56.3 million	$17.6 million
Cash and Cash Equivalents	$179.6 million	$89.9 million

As of September 30, 2024, MacroGenics reported total stockholders' equity of $120.1 million, reflecting its ongoing financial stability and capacity to fund future operations and development.

MacroGenics, Inc. (MGNX) - Business Model: Value Propositions

Innovative therapies targeting unmet medical needs in oncology

MacroGenics, Inc. focuses on developing innovative therapies specifically designed to address unmet medical needs in the oncology sector. Their flagship product, Margetuximab, is a monoclonal antibody targeting HER2-positive cancers. In 2024, the company reported net product sales of $14.3 million for Margetuximab during the nine months ended September 30, 2024. The company is also advancing therapies aimed at other oncological targets, such as Vobramitamab duocarmazine, which saw a research and development expense of $32.2 million for the same period, reflecting a 15% increase from the previous year.

Combination therapies enhancing treatment efficacy

MacroGenics is actively engaged in developing combination therapies to enhance the efficacy of existing treatments. The combination of Margetuximab with other agents is being studied to improve patient outcomes. For instance, the clinical development of Lorigerlimab, another promising candidate, incurred research costs of $26.9 million for the nine months ended September 30, 2024, marking a 25% increase from 2023. Additionally, the company invested in preclinical antibody-drug conjugates (ADCs), with R&D expenses reaching $14.8 million, up 164% year-over-year.

Strong pipeline with multiple products in various stages of development

MacroGenics boasts a robust pipeline with multiple products at different stages of development. As of September 30, 2024, the total research and development expense was $138.3 million, reflecting a 16% increase compared to the previous year. The pipeline includes several clinical and preclinical candidates, such as MGC028 and MGD024, which received significant funding for ongoing trials—$20.2 million and $7.3 million, respectively. This diversified portfolio allows MacroGenics to target various cancer types, thereby increasing the potential for successful treatments and market penetration.

Product Candidate	Stage of Development	R&D Expense (9M 2024)	Indication
Margetuximab	Commercial	$8.1 million	HER2-positive cancers
Vobramitamab duocarmazine	Clinical	$32.2 million	Unmet oncology needs
Lorigerlimab	Clinical	$26.9 million	Immune-oncology
MGC028	Clinical	$20.2 million	Multiple oncology indications
MGD024	Clinical	$7.3 million	Multiple oncology indications

MacroGenics, Inc. (MGNX) - Business Model: Customer Relationships

Collaboration with healthcare providers for clinical trials

MacroGenics collaborates extensively with healthcare providers to conduct clinical trials for its innovative therapies. As of 2024, the company has invested approximately $138.3 million in research and development for its various clinical programs. Notably, the company reported significant increases in development costs for specific drug candidates, such as Vobramitamab duocarmazine and MGC028, reflecting ongoing collaborations with trial sites.

In the three months ended September 30, 2024, MacroGenics recognized $40.5 million in research and development expenses, with a substantial portion allocated to clinical trial activities. These partnerships are crucial for gathering data to support regulatory submissions and ultimately bring new drugs to market.

Engagement with patients through educational initiatives

MacroGenics emphasizes patient engagement as a critical element of its business strategy. The company invests in educational initiatives aimed at informing patients about its therapies and clinical trial opportunities. This engagement is designed to enhance patient recruitment and retention in clinical trials, which is vital for the success of their drug development programs.

As part of its commitment to patient education, MacroGenics has implemented outreach programs that provide information on the potential benefits and risks associated with its therapies. While specific financial figures related to these initiatives were not disclosed, the overall increase in selling, general, and administrative expenses, which amounted to $43.2 million for the nine months ended September 30, 2024, suggests a growing focus on patient engagement.

Ongoing communication with investors regarding financial performance

MacroGenics maintains a robust communication strategy with its investors, providing regular updates on financial performance and strategic initiatives. For the three months ended September 30, 2024, the company reported total revenues of $110.7 million, a significant increase compared to $10.4 million in the same period of the previous year. This dramatic rise was primarily attributed to a milestone payment under the Incyte License Agreement, which accounted for $100 million.

The company also recognizes the importance of transparency in its financial reporting. As of September 30, 2024, MacroGenics had $264.5 million in total assets and a stockholders' equity of $120.1 million. This ongoing dialogue with investors not only builds trust but also ensures that stakeholders are well-informed about the company's progress and future outlook.

Key Metrics	Q3 2024	Q3 2023	Change ($)	Change (%)
Total Revenue	$110.7 million	$10.4 million	$100.3 million	NM
Research & Development Expenses	$40.5 million	$30.1 million	$10.4 million	35%
Selling, General & Administrative Expenses	$14.1 million	$12.4 million	$1.7 million	14%
Net Income (Loss)	$56.3 million	$17.6 million	$38.7 million	219%
Cash and Cash Equivalents	$179.6 million	$89.9 million	$89.7 million	100%

MacroGenics, Inc. (MGNX) - Business Model: Channels

Direct sales through commercialization partners

MacroGenics primarily engages in direct sales through its commercialization partners. As of September 30, 2024, the company recognized significant revenue from collaborative agreements, with total revenues of $110.7 million for the three months ended September 30, 2024, compared to $10.4 million for the same period in 2023. This increase was largely attributed to a $100 million milestone under the Incyte License Agreement .

Revenue Source	Q3 2024 Revenue	Q3 2023 Revenue	Change
Collaborative Agreements	$101.4 million	$0.9 million	+11,200%
Product Sales, Net	$4.2 million	$4.7 million	-11%
Contract Manufacturing	$4.5 million	$4.5 million	0%
Government Agreements	$0.6 million	$0.3 million	+100%

Collaborative agreements for research and development

MacroGenics has established multiple collaborative agreements to enhance its research and development (R&D) efforts. As of September 30, 2024, the company’s total R&D expenses were $40.5 million for the quarter, a 35% increase from $30.1 million in Q3 2023. This increase reflects intensified development costs across various product candidates .

Notably, the company recorded revenue of $2.4 million related to its collaboration with Gilead during the nine months ended September 30, 2024, compared to $0.1 million for the same period in 2023 . The total funded contract value under the NIAID contract reached $25.1 million, with revenue recognized of $1.4 million for the nine months ended September 30, 2024 .

Collaboration Partner	Revenue Recognized (9M 2024)	Revenue Recognized (9M 2023)	Change
Gilead	$2.4 million	$0.1 million	+2,300%
NIAID	$1.4 million	$1.1 million	+27%

Online platforms for investor relations and updates

MacroGenics utilizes its online platforms for investor relations, providing updates and financial performance data. The company reported a net income of $56.3 million for the three months ended September 30, 2024, compared to a net income of $17.6 million for the same period in 2023 . The company’s total cash and cash equivalents increased to $179.6 million as of September 30, 2024, up from $100.9 million at the end of 2023 .

The online investor relations platform enables stakeholders to access comprehensive financial reports, press releases, and updates on clinical trials and product development activities, thereby enhancing transparency and communication with investors.

MacroGenics, Inc. (MGNX) - Business Model: Customer Segments

Oncologists and healthcare professionals

MacroGenics targets oncologists and healthcare professionals who are involved in the treatment of patients with various types of cancer. The company’s focus is on providing innovative antibody-based therapies that these professionals can integrate into their treatment protocols. As of September 30, 2024, MacroGenics reported a total revenue of $110.7 million for the quarter, a significant increase attributed to milestones achieved under collaboration agreements, particularly with Incyte.

Patients with specific cancer types

MacroGenics primarily aims to serve patients diagnosed with specific cancer types, including breast cancer, lung cancer, and other solid tumors. The company's lead product, MARGENZA (margetuximab), is specifically designed for HER2-positive breast cancer patients. As of September 30, 2024, the total revenue from product sales was reported at $4.2 million for the quarter. This demonstrates the company's commitment to providing effective treatments for patients with unmet medical needs.

Institutional and retail investors interested in biotech

MacroGenics also targets institutional and retail investors who are interested in the biotechnology sector. The company has engaged in various financing activities to support its research and development efforts. As of September 30, 2024, the weighted average shares outstanding were 62,865,841, reflecting the company's equity structure and investor interest. The financial health of MacroGenics can also be gauged by its net income of $56.3 million for the quarter, which is a positive indicator for potential investors.

Customer Segment	Key Characteristics	Revenue Contribution (Q3 2024)
Oncologists and Healthcare Professionals	Healthcare providers treating cancer patients	$110.7 million (total revenue)
Patients with Specific Cancer Types	Patients with HER2-positive breast cancer	$4.2 million (product sales)
Institutional and Retail Investors	Investors focused on biotech growth potential	62,865,841 (weighted average shares outstanding)

MacroGenics, Inc. (MGNX) - Business Model: Cost Structure

High Research and Development Expenses

For the nine months ended September 30, 2024, MacroGenics incurred a total research and development expense of $138.3 million, representing an increase from $119.2 million in the same period of 2023. This reflects a growth of 16%.

During the three months ended September 30, 2024, R&D expenses were $40.5 million, up from $30.1 million in 2023, marking a 35% increase.

Research Program	3 Months Ended Sep 30, 2024 ($ million)	3 Months Ended Sep 30, 2023 ($ million)	9 Months Ended Sep 30, 2024 ($ million)	9 Months Ended Sep 30, 2023 ($ million)
Vobramitamab duocarmazine	10.5	6.5	32.2	28.0
Lorigerlimab	6.3	6.2	26.9	21.6
Preclinical ADCs	5.5	1.5	14.8	5.6
MGC028	4.3	4.1	20.2	7.7
Total R&D Expense	40.5	30.1	138.3	119.2

Manufacturing and Operational Costs

For the nine months ending September 30, 2024, the cost of manufacturing services was $6.2 million, a decrease from $7.6 million for the same period in 2023. In the three months ended September 30, 2024, this cost was $1.7 million, down from $3.3 million in 2023.

The costs associated with manufacturing services include process development and bulk drug substance production for contract development customers.

Cost Category	3 Months Ended Sep 30, 2024 ($ million)	3 Months Ended Sep 30, 2023 ($ million)	9 Months Ended Sep 30, 2024 ($ million)	9 Months Ended Sep 30, 2023 ($ million)
Cost of Manufacturing Services	1.7	3.3	6.2	7.6

Selling, General, and Administrative Expenses

Selling, general, and administrative expenses for the nine months ended September 30, 2024, totaled $43.2 million, compared to $39.6 million in 2023. This represents an increase of approximately 9%.

For the three months ending September 30, 2024, these expenses were $14.1 million, up from $12.4 million in the same quarter of 2023.

Expense Category	3 Months Ended Sep 30, 2024 ($ million)	3 Months Ended Sep 30, 2023 ($ million)	9 Months Ended Sep 30, 2024 ($ million)	9 Months Ended Sep 30, 2023 ($ million)
Selling, General, and Administrative Expenses	14.1	12.4	43.2	39.6

MacroGenics, Inc. (MGNX) - Business Model: Revenue Streams

Product sales from approved therapies

For the nine months ended September 30, 2024, MacroGenics reported net product sales of $14.3 million, reflecting an increase from $13.2 million for the same period in 2023. The cost of product sales was $0.6 million for the nine months ended September 30, 2024, compared to $0.5 million for the nine months ended September 30, 2023.

Milestone payments from collaboration agreements

During the three months ended September 30, 2024, MacroGenics recognized $100.0 million in milestone revenue under the Incyte License Agreement, contributing to total collaborative and other agreements revenue of $101.4 million for the quarter. For the nine months ended September 30, 2024, the total revenue from collaborative agreements was $105.2 million.

Milestone Payments	Amount (in millions)	Period
Incyte License Agreement	$100.0	Q3 2024
Total Collaborative Revenue	$101.4	Q3 2024
Total Collaborative Revenue	$105.2	9M 2024

Contract manufacturing services for partners

For the nine months ended September 30, 2024, MacroGenics reported $9.7 million in revenue from contract manufacturing services, consistent with the $9.7 million reported for the same period in 2023. The cost of manufacturing services was $6.2 million for the nine months ended September 30, 2024, down from $7.6 million in the same period in 2023.

Contract Manufacturing Revenue	Amount (in millions)	Period
Revenue	$9.7	9M 2024
Cost of Manufacturing Services	$6.2	9M 2024

Updated on 16 Nov 2024

Resources:

1. MacroGenics, Inc. (MGNX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of MacroGenics, Inc. (MGNX)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View MacroGenics, Inc. (MGNX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.