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October 2022 Top Biopharma Deal: MacroGenics – Gilead for blood cancer drug MGD024

Nov 4, 2022 | Deal of the Month, Partnership Deals

October 2022 Top Biopharma Deal Upfront
MacroGenics research partnership with Gilead with an option to license MGD024

Highlighted Deal Financial Comps

Date Announced:

October 17, 2022

Total Deal Value:

$1,760M

Upfront Cash:

$60M

Upfront Equity:

n/a

Option Payments:

Undisclosed option exercise fees

Total Milestones:

$1,700M dev. and sales milestones

Royalties:

Undisclosed tiered, double-digit royalties for MGD024 and a flat royalty for two other therapies

Cost & Profit Split:

n/a

Deal Synopsis

The Asset:

MacroGenics’ MGD024, an investigational, bispecific CD123 × CD3 DART molecule for blood cancers, including AML and MDS

Deal Structure:

Option to License

Partnership Features:

Collaborative Development, No Shared Cost

Deal Details:

  • MacroGenics signed a research partnership with Gilead to develop MacroGenics’ MGD024, a bispecific antibody, and two additional bispecific therapies using MacroGenics’ DART platform with an exclusive, worldwide option to license MGD024 for the treatment of certain blood cancers, including acute myeloid leukemia (AML) and myelodysplastic syndromes (MDS).
  • MacroGenics will be responsible for Phase I clinical trials of MGD024 as a monotherapy and combination therapy for multiple indications. Gilead may exercise its option at predetermined decision points.
  • MacroGenics will receive $60M in cash up front. MacroGenics is eligible to receive up to $1.7B in development, regulatory, and commercial milestone payments, and undisclosed option exercise fees, plus tiered, double-digit royalties for MGD024 and a flat royalty for two other therapies.pringWorks will receive a $75M equity investment in shares of common stock at a premium to the 30-day volume-weighted average share price on Sept 2, 2022, and is eligible to receive up to $550M in development and commercial milestones.

Last Month:

Congrats to MacroGenics and Gilead for landing DealForma’s Oct 2022 Top Biopharma Deal. Last month’s Deal of the Month was SpringWorks – GSK for multiple myeloma drug Nirogacestat in combination with Blenrep. Read about it here.

DealForma’s Deal of the Month selection is based on the largest disclosed upfront cash and equity total in partnership deals involving R&D as announced in the month prior to this article. Data for this analysis was compiled using the DealForma biopharma deals database. All data are based on publicly disclosed figures and deal terms.

We invite you to answer interesting questions on biopharma business development and licensing using our data and carefully curated profiles on deals, pipelines, companies, funding, and business executives by visiting dealforma.com to schedule your personalized demo.

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