MacroGenics rises after partnership with Sagard for drug royalties

Shares of drug developer MacroGenics MGNX.O rise 20.9% to $1.9 premarket

MGNX will sell its royalty rights on global net sales of its drug ZYNYZ to alternative asset management firm Sagard for $70 million upfront, under terms of a deal

After Sagard gets $140 million in royalties, MGNX will start collecting all future royalties

ZYNYZ is marketed in the U.S. by drugmaker Incyte INCY.O; drug was originally developed by MGNX and licensed to Incyte in October 2017 for the treatment of a type of anal cancer

MacroGenics had $154.1 million in cash, cash equivalents and marketable securities as of March 31

MacroGenics says its cash runway extended through first half of 2027, following the royalty deal

As of last close, MGNX stock down 49.5% YTD