MacroGenics (NASDAQ:MGNX), a clinical-stage biopharmaceutical company dedicated to the discovery, development, manufacturing, and commercialization of innovative antibody-based therapeutics for cancer treatment, today announced it has entered into a royalty purchase agreement with Sagard.
This agreement grants Sagard a capped royalty interest on future global net sales of ZYNYZ (retifanlimab-dlwr).
ZYNYZ, a PD-1 inhibitor, was originally developed by MacroGenics and subsequently licensed to Incyte under an exclusive global collaboration and license agreement in October 2017.
Under the terms of the new royalty purchase agreement, MacroGenics has received a $70 million upfront payment in exchange for the sale of its royalty rights on global net sales of ZYNYZ.
Crucially, MacroGenics will retain its other significant economic interests related to ZYNYZ, including future potential development, regulatory, and commercial milestones.
The company also confirmed its ongoing commitment to support a portion of the global commercial manufacturing needs for ZYNYZ.
The agreement specifies that Sagard will receive aggregate royalty payments totaling $140 million (representing 2.0x the upfront payment).
Following Sagard’s receipt of this capped amount, MacroGenics will fully resume collecting all future royalties on global net sales of ZYNYZ.
This strategic financial move provides MacroGenics with immediate capital while allowing the company to retain substantial long-term economic upside from ZYNYZ.