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Merrimack (MACK) Reports Wider-than-Expected Q2 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.

Merrimack divested its only marketed product, Onivyde, last year to Ipsen. It received $575 million in cash from the asset divestiture. The company also received an additional $18 million milestone payment from Shire from the sale of Onivyde in two major European Countries.

With the sale of Onivyde, Merrimack is back to being a development-stage biopharmaceutical company. Hence, it now focuses on the development of its two early-stage pipeline candidates, namely MM-121/seribantumab and MM-310 (solid tumor).

The company’s track record has been mixed so far, with the company beating estimates in two of the last four quarters and missing the same twice, with an average positive earnings surprise of 11.90%.

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 second 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 second quarter of 2018, the company did not recognize any revenues.

Other Update: The company received an additional $18 million milestone payment from Shire from the sale of Onivyde in two major European Countries. It also received $14.7 million debt facility from Hercules Capital. Merrimack expects this milestone payment and the loan to effectively fund current operating plans for at least till the first-quarter of 2020.

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

 

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