Why Is Macrogenics (MGNX) Stock Down 69% Today?


  • Macrogenics (MGNX) stock is falling on Friday following a clinical trial update.
  • The company notes five deaths in its latest clinical data.
  • It also missed EPS and revenue estimates in Q1 2024.
MGNX Stock - Why Is Macrogenics (MGNX) Stock Down 69% Today?

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Macrogenics (NASDAQ:MGNX) stock is dropping hard on Friday after the after providing investors with a clinical trial update in its latest earnings report.

The news that has investors spooked today has to do with fatalities during Macrogenics’ TAMARACK study. The company reported five deaths during the clinical trial.

Of these five deaths, two are considered to be unconnected to the study. That includes a case of acute myocardial infarction and one cardiac arrest. The company is currently investigating the other three fatalities. They include two instances of pneumonitis and a Grade 3 pleural effusion.

MacroGenics president and CEO Scott Koenig said the following about the clinical trial:

“Based on our evaluation of the interim data to date, we have initiated planning activities for a potential Phase 3 study that could commence next year. We anticipate sharing final safety, efficacy and durability data, including radiographic progression-free survival data, which is the primary endpoint of the study, in the second half of 2024.”

Earnings Misses Hit MGNX Stock

The company’s Q1 2024 earnings report includes EPS of -84 cents and revenue of $9.1 million. Both of these are below Wall Street’s estimates of -64 cents and $14.86 million. They are also worse than its EPS of -61 cents and revenue of $24.5 million from the same period of the year prior.

MGNX stock is down 68.5% as of Friday morning. That comes with over 1.5 million shares traded, as compared to a daily average of 1.47 million shares.

There are more stock market stories traders will want to read about on Friday!

Fortunately, we have collected all of that news in one place for investors! A few examples include what’s sending shares of AEye (NASDAQ:LIDR) and Novavax (NASDAQ:NVAX) stock higher today, as well as the biggest pre-market stock movers this morning. All of this news is good to go at the links below!

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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