MacroGenics goes for cash over royalties

MacroGenics, fresh from discontinuing its lead project vobramitamab duocarmazine, has bolstered funding for its remaining pipeline. The group has sold royalties on the anti-PD-1 drug Zynyz to Sagard Healthcare for $70m – a sum that should help MacroGenics keep going through the first half of 2027. It’s notable that Sagard’s royalties will be capped at $140m, after which MacroGenics can resume collection – assuming the latter is still around. The agreement gives Sagard a chance to double its money, but this might take some time: Zynyz, licensed to Incyte, sold just $3m in the first quarter of 2025, with MacroGenics due tiered royalties of 15-24%. Zynyz, previously FDA approved for Merkel cell carcinoma, might get a boost from recent anal cancer nods. As biotechs come under pressure there could be more of these kinds of deals, although shareholders might prefer the approach of iTeos, which is winding down completely following the failure of its anti-TIGIT MAb belrestotug. Meanwhile Elevation Oncology, which recently binned its Claudin18.2-targeting ADC EO-3021, just sold itself to the serial acquirer Concentra Biosciences for $0.36 per share and a CVR that will give shareholders 80% of the proceeds from any sale of Elevation’s remaining asset, the anti-HER3 ADC EO-1022.