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Merrimack (MACK) Reports Wider-than-Expected Q1 Loss

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Merrimack Pharmaceuticals, Inc. (MACK - Free Report) is a Cambridge, MA-based development-stage biopharmaceutical company focused on developing innovative therapies in combination with companion diagnostics for the treatment of cancer.

Being a development-stage company, Merrimack does not have any approved product in its portfolio yet. Hence, investor focus should remain on pipeline updates.

After the sale of its only marketed product, Onivyde, to Ipsen for $1 billion in 2017, Merrimack is focused on its three pipeline candidates. MM-121 is being developed as a combination therapy in two phase II studies for the treatment of lung and breast cancer. MM-141, a monoclonal antibody, is being evaluated in a phase II study in pancreatic cancer patients. The company is evaluating MM-310, an antibody, in solid tumors in phase I study.

The company’s track record has been mixed, with the company beating estimates in two of the last four quarters and missing the same twice, with an average negative earnings surprise of 40.7%.

Currently, Merrimack has a Zacks Rank # 3 (Hold), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: Merrimack posted wider-than-expected loss in the first quarter of 2018. While our consensus called for a loss of $1.28 per share, the company reported a loss of $1.33.

Revenues: In the first quarter of 2018, the company did not recognize any revenues.

Other Update: The company reported research and development expenses of $13.1 million during the quarter, down 39.4%. General and administrative expenses declined 23.2% year over year to $4.3 million. Cash and cash equivalents and marketable securities decreased to $76.3 million as of Mar 31, 2018 from $93.4 million as of December 31, 2017.

Share Price Impact: The shares were inactive in pre-market trading.

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