Shares of biopharmaceutical company, MacroGenics, Inc. (NASDAQ:MGNX) surged as much as 15.60% in early trading on Wednesday after Citi research upgraded the company’s shares to a Buy rating (From Neutral).
Citi has also increased their 12-month price target on the stock by $6 to $13.00. The addition of lorigerlimab and the Gilead milestones to Citi’s forecasts each add ~$3/share to their estimated valuation.
Over the past two months, the performance of MGNX shares have improved about 80%. Citi analysts attribute this rise to ongoing progress in their pipeline execution, heightened interest, and increased investment from pharmaceutical companies like Merck/Daiichi and AbbVie/ImmunoGen in the ADC class.
Additionally, the surge in MGNX shares has been assisted by an overall boost in the biotech sector.
Through its partnership with Synaffix (now part of Lonza), MGNX now has the option for seven ADC candidates using Synaffix’s technology. Their lead candidate, MGC026, targeting an undisclosed solid tumor, plans a Phase 1 trial in early 2024.
The company expects another undisclosed target ADC filing by late 2024.
MGNX’s partnerships have continued to provide avenues for non-dilutive capital and has secured about $335M in non-dilutive funding since mid-2022, extending MGNX's runway into 2026.
Shares of MGNX are up 12.27% in mid-day trading on Wednesday.