On Wednesday, MacroGenics (NASDAQ:MGNX) experienced a change in stock rating as BTIG shifted its stance from Buy to Neutral. The biopharmaceutical company recently halted its Tamarack study, which was focused on evaluating vobra duo for metastatic castration-resistant prostate cancer (mCRPC). The decision to discontinue the study came after the Independent Data Monitoring Committee (IDMC) recommended ending treatment for the remaining participants eligible for additional doses. Most of these patients had already received between 8 to 12 doses of the drug at the time the study was halted.
The discontinuation of the Tamarack study has led to uncertainty about potential stock-moving catalysts for MacroGenics in the coming year. In response to these developments, BTIG has removed its market model for vobra duo in mCRPC from their analysis. The firm notes that the lack of clarity regarding future catalysts has influenced their decision to downgrade the stock rating.
Despite the study's end, the company will continue monitoring the participants for efficacy and safety outcomes. MacroGenics anticipates presenting mature data from the Tamarack study, including median radiographic progression-free survival (rPFS), later in the second half of 2024 at a medical conference. Prior to this, MacroGenics is scheduled to present safety and efficacy data, including a 6-month rPFS rate, at the European Society for Medical Oncology (ESMO) 2024 conference, which will be held from September 13-17.
MacroGenics is planning to use the forthcoming data from ESMO 2024, including median rPFS and overall survival (OS), to inform potential future study designs for vobra duo in mCRPC. As the ESMO data are under embargo, the company will enter a quiet period until they provide an update on the vobra duo program during an investor conference call post-ESMO conference.
Analyst firms B.Riley, Guggenheim, Citi, and H.C. Wainwright have adjusted their stances on MacroGenics. B.Riley and Guggenheim downgraded the company's stock from "Buy" to "Neutral" following the TAMARACK study update. Citi lowered its price target for MacroGenics to $16 from $25 but maintains a Buy rating, while H.C. Wainwright significantly reduced its target to $4 from $16, retaining a Neutral stance. Both firms adjusted their estimated probabilities of success for vobra duo due to recent safety concerns. These are part of the recent developments that investors should keep track of.
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