MacroGenics gets $100M in milestone payments from Incyte for Zynyz development

MacroGenics (MGNX) announced the achievement of $100M in milestones from Incyte (INCY) related to development progress of Zynyz, following an agreement on July 24, pursuant to which certain milestones were deemed to have been met. Zynyz is an intravenous PD-1 inhibitor indicated in the U.S. for the treatment of adult patients with metastatic or recurrent locally advanced Merkel cell carcinoma. Zynyz is a monoclonal antibody initially developed by MacroGenics and licensed to Incyte under a 2017 exclusive global collaboration and license agreement. Incyte and its collaborators continue to pursue development of retifanlimab in other indications, which include both monotherapy and combination regimens. Under the 2017 collaboration agreement with Incyte, MacroGenics received an upfront payment of $150M and has achieved a total of $215M in milestones, including the recent $100M described above. MacroGenics remains eligible to receive up to a total of $210M in potential development and regulatory milestones and up to $330M in potential commercial milestones. MacroGenics receives tiered royalties, which range from 15% to 24% percent, on worldwide net sales of Zynyz. MacroGenics expects to provide its June 30, 2024 cash, cash equivalents and marketable securities balance in its second quarter earnings announcement on or around August 6. The company currently anticipates that its June 30, 2024 cash balance plus the $100M in milestones achieved from Incyte, in addition to projected and anticipated future payments from partners and product revenues should support its cash runway into 2026. The company’s expected funding requirements reflect anticipated expenditures related to its ongoing clinical and preclinical studies.