MacroGenics, Inc.
May 6, 2015

MacroGenics Provides Update on Corporate Progress and First Quarter 2015 Financial Results

-- Company's third bi-specific DART® molecule, MGD010, in clinical testing

-- FDA clears IND for fourth DART, MGD011 - Janssen to initiate clinical testing

-- Margetuximab Phase 3 SOPHIA study in metastatic breast cancer to initiate 3Q 2015

ROCKVILLE, Md., May 6, 2015 (GLOBE NEWSWIRE) -- MacroGenics, Inc. (Nasdaq:MGNX), a clinical-stage biopharmaceutical company focused on discovering and developing innovative monoclonal antibody-based therapeutics for the treatment of cancer, as well as autoimmune disorders and infectious diseases, today provided a corporate progress update and reported financial results for the first quarter ended March 31, 2015.

"I am very pleased to announce the clearance for clinical testing of MGD011, following our recent IND submission to the FDA. With the anticipated clinical initiation of this molecule by our collaboration partner, Janssen Biotech, Inc., and our recent Phase 1 initiation of MGD010, MGD011 will represent the fourth Dual-Affinity Re-Targeting molecule, or DART, to enter the clinic. Our mission to harness the power of the immune system to fight cancer and autoimmune disorders has continued to advance," said Scott Koenig, M.D., Ph.D., President and CEO of MacroGenics. "In addition to our DART molecules, both of our Fc-optimized product candidates, margetuximab and MGA271, continue to progress in the clinic and we look forward to sharing Phase 1 data with you later this year for these two programs. In addition to the high level of clinical activity underway at MacroGenics, we continue to make significant progress on earlier-stage molecules that will serve as the basis for new INDs we intend to submit later this year and in subsequent years."

Pipeline Update

Margetuximab is an Fc-optimized monoclonal antibody that targets HER2. Recent highlights include:

MGA271 is an Fc-optimized monoclonal antibody that targets B7-H3, a member of the B7 family of molecules involved in immune regulation. Recent highlights include:

MGD006 is a humanized DART molecule that recognizes both CD123 and CD3. CD123, the Interleukin-3 receptor alpha chain, is expressed on leukemia and leukemic stem cells. The primary mechanism of action of MGD006 is its ability to redirect T cells, via their CD3 component, to kill CD123-expressing cells. MacroGenics continues to enroll patients in the dose escalation portion of a Phase 1 study of MGD006 for the treatment of acute myeloid leukemia.

MGD007 is a humanized DART molecule that recognizes both the glycoprotein A33 antigen, or gpA33, and CD3. gpA33 is a gastrointestinal antigen with high expression in colorectal cancer.The primary mechanism of action of MGD007 is its ability to redirect T cells, via their CD3 component, to kill gpA33-expressing cells. MacroGenics continues to enroll patients in the dose escalation portion of a Phase 1 study of MGD007 for the treatment of colorectal cancer.

MGD010 is a humanized DART molecule that simultaneously targets CD32B and CD79B, two B-cell surface proteins. MGD010 is being developed for the treatment of autoimmune disorders and is designed to inhibit B-cell activation by exploiting the inhibitory function of CD32B, a checkpoint molecule expressed by B cells. MacroGenics initiated a Phase 1a study in normal healthy volunteers during the first quarter of 2015, which triggered a milestone payment of $3 million by our global collaboration partner, Takeda Pharmaceuticals Company Limited.

MGD011 is a humanized DART molecule that targets both CD19 and CD3 and is being developed for the treatment of B-cell hematological malignancies. MGD011 is designed to redirect T cells, via their CD3 component, to eliminate cells expressing CD19, a specific marker expressed in B-cell hematological malignancies.  MGD011 has been engineered to address half-life challenges posed by other programs targeting CD19 and CD3, allowing for convenient dosing regimens in the clinical setting. 

MacroGenics submitted an investigational new drug (IND) application for MGD011 that has been cleared by the U.S. Food and Drug Administration (FDA) to allow initiation of clinical testing. Pursuant to the Company's collaboration and license agreement with Janssen Biotech, Inc., Janssen will develop the product candidate, subject to MacroGenics' options to co-promote the product in the United States and Canada and to invest in later-stage development in exchange for a profit-share.

MacroGenics continues to advance several additional antibody and DART-based pre-clinical molecules, including MGD009, for which MacroGenics retains worldwide development and commercialization rights.

First Quarter 2015 Financial Results

Conference Call Information

MacroGenics will host a conference call today at 4:30 pm (EDT) to discuss the year and provide a corporate update. To participate in the conference call, please dial (877) 303-6253 (domestic) or (973) 409-9610 (international)  five minutes prior to the start of the call and provide the Conference ID: 37744154.

The recorded, listen-only webcast of the conference call can be accessed under "Events & Presentations" in the Investor Relations section of the Company's website at http://ir.macrogenics.com/events.cfm. A replay of the webcast will be available shortly after the conclusion of the call and archived on the Company's website for 30 days following the call.

MACROGENICS, INC.
CONSOLIDATED BALANCE SHEET DATA
(Amounts in thousands)
     
  March 31, 2015 December 31, 2014
Cash and cash equivalents  $ 263,134  $ 157,591
Total assets  278,070  173,886
Deferred revenue  26,771  30,720
Total stockholders' equity  230,993  121,286
     
     
MACROGENICS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(Amounts in thousands, except share and per share data)
     
  Three Months Ended March 31,
  2015 2014
Revenues:    
Revenue from collaborative research  $ 71,165  $ 14,401
Grant revenue  114  318
Total revenues  71,279  14,719
     
Costs and expenses:    
Research and development  21,464  14,569
General and administrative  4,683  3,258
Total costs and expenses  26,147  17,827
     
Income (loss) from operations  45,132  (3,108)
     
Other income (expense)  (3)  -
Net comprehensive income (loss)  $ 45,129  $ (3,108)
     
     
Basic net income (loss) per common share $1.53 ($0.12)
Diluted net income (loss) per common share $1.42 ($0.12)
Basic weighted average common shares outstanding  29,415,768  26,262,356
Diluted weighted average common shares outstanding  31,684,174  26,262,356
     
     
MACROGENICS, INC.
SUMMARY OF NON-GAAP ADJUSTMENTS
(Amounts in thousands, except share and per share data)
       
    Revenue from  
    Janssen  
  GAAP  Agreements Non-GAAP
Three months ended March 31, 2015:      
Total revenues  $ 71,279  $ 62,308  $ 8,971
Income (loss) from operations  45,132  (62,308)  (17,176)
Net comprehensive income (loss)  45,129  (62,308)  (17,179)
       
Basic net income (loss) per common share  $ 1.53  $ (2.12)  $ (0.58)
Diluted net income (loss) per common share  $ 1.42  $ (2.12)  $ (0.58)

About MacroGenics, Inc.

MacroGenics is a clinical-stage biopharmaceutical company focused on discovering and developing innovative monoclonal antibody-based therapeutics for the treatment of cancer, as well as autoimmune disorders and infectious diseases. The company generates its pipeline of product candidates from its proprietary suite of next-generation antibody-based technology platforms. The combination of MacroGenics' technology platforms and protein engineering expertise has allowed the Company to generate promising product candidates and enter into several strategic collaborations with global pharmaceutical and biotechnology companies. For more information, please see the Company's website at www.macrogenics.com. MacroGenics and DART are registered trademarks of MacroGenics, Inc.

Cautionary Note on Forward-Looking Statements

Any statements in this press release about future expectations, plans and prospects for the Company, including statements about the Company's strategy, future operations, clinical development of the Company's therapeutic candidates, milestone or opt-in payments from the Company's collaborators, the Company's anticipated milestones and future expectations and plans and prospects for the Company and other statements containing the words "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "predict," "project," "target," "potential," "will," "would," "could," "should," "continue," and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: the uncertainties inherent in the initiation and enrollment of future clinical trials, expectations of expanding ongoing clinical trials, availability and timing of data from ongoing clinical trials, expectations for regulatory approvals, other matters that could affect the availability or commercial potential of the Company's product candidates and other risk factors described in the Company's filings with the Securities and Exchange Commission. In addition, the forward-looking statements included in this press release represent the Company's views as of the date hereof. The Company anticipates that subsequent events and developments will cause the Company's views to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to the date hereof.

CONTACT: Jim Karrels, Senior Vice President, CFO

         MacroGenics, Inc.

         1-301-251-5172, info@macrogenics.com



         Karen Sharma, Vice President

         MacDougall Biomedical Communications

         1-781-235-3060, ksharma@macbiocom.com

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Source: MacroGenics, Inc.

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