Investing.com -- Shares of MacroGenics, Inc. (Nasdaq:NASDAQ:MGNX) soared 30% after the company announced a significant royalty purchase agreement with Sagard Healthcare Partners for its cancer treatment drug ZYNYZ. The biopharmaceutical company, which specializes in antibody-based therapies for cancer, received a $70 million upfront cash payment from Sagard, extending its cash runway until the first half of 2027.
The deal provides MacroGenics with immediate financial benefits, while retaining future economic interests in ZYNYZ, including potential development, regulatory, and commercial milestones. MacroGenics will also continue to support a portion of ZYNYZ’s global commercial manufacturing. Under the agreement terms, after Sagard receives $140 million in aggregate royalty payments, MacroGenics will resume collecting all future royalties on ZYNYZ’s global net sales.
ZYNYZ, a PD-1 inhibitor developed by MacroGenics and licensed to Incyte (NASDAQ:INCY), is indicated for certain types of cancer, including squamous cell carcinoma of the anal canal and Merkel cell carcinoma. The drug is marketed by Incyte in the United States and has received accelerated approval for some indications.
As of March 31, 2025, MacroGenics had over $154.1 million in cash and securities, which, along with the payment from Sagard and other projected revenues, positions the company to fund its operations and clinical programs into 2027. The strategic financial boost from the royalty agreement is a key factor driving investor confidence and the resultant surge in the company’s stock price.
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