Back to top

Analyst Blog

Merrimack Pharmaceuticals, Inc. (MACK - Snapshot Report) recently announced the pricing of its concurrent underwritten public offerings of convertible senior notes and shares of its common stock. The company is looking to issue 5 million shares of its common stock at $5 per share.

The convertible senior notes with an annual interest rate of 4.5% will mature on Jul 15, 2020. The interest will be paid semiannually, Jan 15 and Jul 15 being the interest payment dates, starting from Jan 15, 2014.

The underwriters have been granted an option to purchase additional 750,000 shares of Merrimack’s common stock and an option of purchasing up to an additional $18.75 million in aggregate principal amount of the Notes.

Net proceeds from these offerings will be used by the company to advance the development of its oncology candidate, MM-398, as well as other pipeline candidates. MM-398 is a phase III candidate being developed for the second-line treatment of pancreatic cancer patients, whose disease has progressed after treatment with Eli Lilly and Company’s (LLY - Analyst Report) Gemzar (gemcitabine).

MM-398 was granted orphan drug designation by the European Medicines Agency (EMA) and US Food and Drug Administration in 2011, for the treatment of pancreatic cancer. MM-398 is being studied in several phase I and phase II studies for cancer indications other than pancreatic cancer.

Merrimack currently carries a Zacks Rank #4 (Sell). At present, in the biopharma space, companies like Jazz Pharmaceuticals (JAZZ - Analyst Report) and Sarepta Therapeutics, Inc. (SRPT - Analyst Report) look well positioned with a Zacks Rank #1 (Strong Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UTD THERAPE… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%