MacroGenics Completes Bora Sale, Cuts Staff to About 140
Pro forma cash of $327 million as of June 30, 2026, including Bora, Sanofi and Gilead proceeds, underpins runway guidance through 2028.
MacroGenics, Inc. (MGNX), a clinical-stage biopharmaceutical company developing antibody-based cancer therapeutics, completed the sale of its GMP drug substance manufacturing operations to Bora Pharmaceuticals Co., Ltd. and Bora Biologics USA, LLC in July for a previously disclosed base price of $122.5 million, receiving $119.6 million in cash at closing after working-capital and indebtedness adjustments.
The transaction, together with a concurrent restructuring, is expected to reduce the company’s workforce to approximately 140 employees by year-end, with about 140 former MacroGenics staff hired by Bora. MacroGenics entered a supply agreement with Bora to support process development and drug substance production for its internal pipeline. The shift to a fully outsourced manufacturing model is expected to increase flexibility and cost effectiveness while focusing resources on the novel therapeutics pipeline.
Cash, cash equivalents and marketable securities were $173.3 million as of June 30, 2026, compared with $189.9 million as of December 31, 2025. The June balance included $60.0 million received from Sagard Healthcare Partners related to the monetization of ZYNYZ royalties. During the quarter, the company also earned a $24.5 million regulatory milestone from Sanofi related to U.S. approval of TZIELD, with payment expected in the third quarter of 2026. After June 30, it received the $119.6 million Bora consideration, and in August it recorded a $10.0 million milestone when Gilead exercised its option to license a preclinical bispecific program under their 2022 collaboration.
Pro forma cash, cash equivalents and marketable securities as of June 30, 2026, including net proceeds from Bora, Sanofi and Gilead, totaled $327 million. MacroGenics anticipates that amount, plus other projected future payments from partners, will support cash runway through 2028.
Total revenue was $32.8 million for the quarter ended June 30, 2026, compared with $6.9 million a year earlier, primarily due to the Sanofi TZIELD milestone. Collaborative and other agreements revenue was $25.5 million versus $5.6 million; royalty revenue was $7.3 million versus $1.3 million.
Net income was $19.5 million, or $0.31 a share, versus a net loss of $36.3 million, or $0.57 a share, a year earlier. That result reflected $89.2 million of income from discontinued operations related to the Bora sale and a $52.8 million non-cash loss on extinguishment of the ZYNYZ royalty monetization liability. Loss from operations narrowed to $13.9 million from $43.2 million a year earlier.
Research and development expenses were $38.8 million, attributed to lower lorigerlimab and discontinued-program costs, partly offset by higher MGC026 and MGC028 trial costs. General and administrative expenses were $7.9 million, primarily from lower personnel-related costs, including stock-based compensation. Shares outstanding were 63,645,711 as of June 30, 2026.
The dose-escalation portion of the Phase 1 study of MGC026, a B7-H3 antibody-drug conjugate, was completed after evaluating 1 mg/kg to 9 mg/kg every three weeks. A 7.5 mg/kg dose is being evaluated in four tumor cohorts, including squamous cell carcinoma of the head and neck, endometrial cancer, melanoma and soft tissue sarcoma. The SCCHN cohort met a prespecified response threshold to advance into Stage 2. Interim Phase 1 results were accepted for a poster at the ESMO 2026 Congress in October.
MGC028, a first-in-class ADAM9 ADC, remains in dose escalation, with preliminary clinical results planned for late 2026. MGC030’s IND application was submitted ahead of schedule and cleared by the FDA in the second quarter. The company plans to commence a Phase 1 dose-escalation study in the third quarter, with first patient dosing expected then.
Lorigerlimab, a PD-1 × CTLA-4 bispecific DART molecule, continues in the Phase 2 LINNET study in advanced gynecologic cancers. The company is enrolling 20 additional patients with clear cell gynecologic cancer at 3 mg/kg every three weeks and anticipates updated results in the first half of 2027. Interim LINNET data were also accepted for ESMO 2026.
MacroGenics remains eligible for up to approximately $2.4 billion in aggregate future milestone payments from partnerships with Incyte, Sanofi and Gilead, plus potential royalties on net product sales.