Analysts Cuts Price Target On MacroGenics - Read Why

Analysts Cuts Price Target On MacroGenics - Read Why
  • BMO Capital Markets downgraded MacroGenics Inc MGNX to Market Perform following the discontinuation of enoblituzumab (B7H3 antibody) for head and neck cancers. 
  • The analyst said that enoblituzumab was not a meaningful contributor to the last valuation. 
  • The update has eroded confidence in MacroGenics's ability to address the unresolved safety issues with MCG018 (B7H3 ADC). 
  • The company's platform has delivered several clinically active molecules and one commercial program in Margenza.
  • Related: Patient Death Prompts MacroGenics To Close Mid-Stage Head & Cancer Study.
  • The analyst says that no program appears to stand out as a necessary value driver over the next 12-18 months. BMO lowered the price target to $4 from $31.
  • JMP Securities also lowered the price target to $20 from $24 by removing enoblituzumab. The analyst notes that there is no read-across to the B7-H3 targeting ADC MGC018, which will provide data in 2H22.
  • Price Action: MGNX shares are up 0.70% at $3.58 during the market session on the last check Tuesday.

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