Major $70 Million Royalty Deal by MacroGenics and Sagard
MacroGenics Partners with Sagard for Royalty Acquisition
MacroGenics, Inc. (Nasdaq: MGNX), a clinical-stage biopharmaceutical company dedicated to advancing innovative cancer therapeutics, has established a significant royalty purchase agreement with Sagard Healthcare Partners. This partnership involves a substantial upfront cash injection of $70 million, providing a notable boost to MacroGenics' financial resources and enhancing its capacity to continue its development efforts.
This agreement revolves around a capped royalty interest on the future net sales of ZYNYZ (retifanlimab-dlwr), a pivotal drug in MacroGenics' portfolio. Originally developed by MacroGenics, ZYNYZ is a PD-1 inhibitor that has been licensed to Incyte, following an exclusive collaboration that was initiated in 2017. Through this agreement, MacroGenics retains important economic interests related to ZYNYZ, including potential milestone payments from future development and regulatory progress.
Financial Impact and Future Outlook
With the immediate benefit of the $70 million upfront payment, MacroGenics is poised to extend its financial runway through the first half of 2027. The company reported having $154.1 million in cash and marketable securities as of March 31, 2025, which, combined with this new funding, is expected to support its ongoing clinical and preclinical programs. Additionally, the deal allows the company to benefit from future royalties once Sagard receives a total of $140 million in aggregate royalty payments.
Key Features of ZYNYZ
ZYNYZ has garnered attention as a humanized monoclonal antibody targeting programmed death receptor-1 (PD-1). It is currently indicated for use in combination with chemotherapy for the initial treatment of adults with inoperable locally recurrent or metastatic squamous cell carcinoma of the anal canal (SCAC). ZYNYZ also serves as a single-agent treatment for adult patients who have progressed or experienced intolerance to previous chemotherapy options.
In addition to its SCAC indications, ZYNYZ is approved for treating adults with metastatic or recurrent locally advanced Merkel cell carcinoma (MCC) in the U.S. This approval, granted under accelerated conditions, emphasizes the necessity for further confirmatory trials to ensure the drug's continued market presence.
About MacroGenics
MacroGenics is a biopharmaceutical company committed to uncovering new therapy avenues for cancer through its innovative monoclonal antibody technology. The firm’s diverse pipeline of drug candidates is largely driven by its proprietary technology platforms, which are applicable across numerous therapeutic areas. Part of MacroGenics’ strength lies in their collaboration with global pharmaceutical and biotechnology partners, fostering innovation and development in the fight against cancer.
About Sagard Healthcare Partners
Sagard Healthcare Partners stands out as a multi-strategy asset management firm, managing assets exceeding $25 billion across various investment realms including venture capital, private equity, and real estate. With a robust team of over 400 professionals, Sagard aims to deliver flexible capital and create lasting partnerships, enhancing investment growth and innovation.
Frequently Asked Questions
What is the purpose of the royalty purchase agreement between MacroGenics and Sagard?
The agreement allows MacroGenics to gain a $70 million upfront cash injection, while granting Sagard a capped royalty interest on future net sales of ZYNYZ.
How does this agreement affect MacroGenics' financial situation?
With the $70 million received and existing cash, MacroGenics expects to extend its financial runway to support research and development initiatives into 2027.
What is ZYNYZ and how is it used in treatment?
ZYNYZ is a monoclonal antibody used in treating certain types of cancers such as SCAC and MCC, often in combination with other therapies.
What financial milestones are associated with this agreement?
Once Sagard receives $140 million from the royalties, MacroGenics will regain its right to collect all future royalty payments on ZYNYZ sales.
Where can I find more information about MacroGenics and their products?
For additional details on MacroGenics and their innovate therapies, visit their official website.
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