$MGNX Stepped in and bought a half position at
$2.31. Here’s why:
MacroGenics delivered at ESMO this morning. Interim Phase 1 data for MGC026, its B7-H3 antibody-drug conjugate, showed durable responses across multiple tumor types and a clean safety profile. Based on these results, the co plans to open a front-line head and neck cohort combining MGC026 with Keytruda in early 2027. This is a positive readout, and management executed exactly what it laid out back in July. The stock is down ~36% anyway.
Here's what was actually reported.
• SCCHN cohort (heavily pretreated, median 3 prior lines): 27% best overall response, 6 of 22. That's 4 confirmed PRs and 2 unconfirmed. Disease control 64%.
• Dose escalation, at least 6 mg/kg across 10 tumor types: 29% confirmed ORR, median duration of response 10.2 months.
• Zero ILD, pneumonitis or ocular toxicity across all 85 patients treated. For an exatecan-payload ADC, that's the headline that matters.
• No treatment-related discontinuations in SCCHN. Grade 3+ events were mostly anemia and neutropenia, described as manageable and reversible.
• Stage 2 of the SCCHN cohort is enrolling, with updated data expected mid-2027.
The bal sheet is where it gets interesting, IMO...
• Pro forma cash of
$327M as of June 30, after the Bora manufacturing sale and the Sanofi and Gilead milestones.
• 63.65M shares outstanding. That's
$5.14 per share in pro forma cash.
• At ~
$2.34, the market cap is ~
$149M. You're paying roughly 45 cents on the dollar for the cash alone.
• Runway guided through 2028, so no near-term raise is needed to reach the next readout.
The way I see it, the tape sold the 2 unconfirmed PRs and the heme tox line, ignored the safety profile that differentiates this ADC, and ignored a cash pile worth more than double the market cap. That's the kind of disconnect I want to step into.
Regarding the tape... a gap through the 20, 50, 100 and 200-day on 8x avg volume, with daily RSI at 26. That's capitulation-grade selling into a positive data release.
Levels I'm watching: today's low in the
$2.25 area, then the
$2.00 to
$2.20 base the stock built before the March breakout. The 200-day sits overhead near
$3.40, and yesterday's close of
$3.63 is the gap fill.
Bottom line: the event risk is behind it, the cash isn't going anywhere, and the market is pricing the pipeline near zero. That's where asymmetric setups come from.
Just sharing my work. Please check everything yourself. NOT financial advice.
