MacroGenics cut to Neutral at Citi, Guggenheim upgrades
MacroGenics (NASDAQ:MGNX) has garnered attention on Wall Street this week, with Citi downgrading the commercial-stage biotech on Wednesday to Neutral from Buy after an upgrade from Guggenheim a day earlier.
Citi analyst Yigal Nochomovitz removes MacroGenics' (MGNX) experimental cancer therapy enoblituzumab from his model, arguing that, in their view, there are no ongoing or planned studies for the candidate.
Enoblituzumab is a monoclonal antibody co-developed by MacroGenics (MGNX) and Chinese biotech I-Mab (IMAB) for recurrent or metastatic squamous cell carcinoma of the head and neck (SCCHN). However, in July, the company announced the discontinuation of a mid-stage trial for the candidate in SCCHN after an internal review of safety data.
"We do not believe future enoblituzumab potential should still be reflected in our base case," Nochomovitz wrote, trimming the MGNX price target to $7 from $16 per share.
However, on Tuesday, Guggenheim Securities upgraded the stock to Buy from Neutral, citing, among other things, the company's stronger balance sheet and near-term catalysts.
The analyst Charles Zhu with a $12 per share target on the stock, pointed to management's optimism over emerging data for bispecific compound lorigerlimab, which is on track for a presentation at a medical conference in Q1 2023.
Cowen also downgraded MacroGenics (MGNX) early in the day, citing a lack of near-term catalysts.