Cambridge, MA-based Merrimack Pharmaceuticals, Inc. (MACK - Free Report) is a biopharmaceutical company focused on the discovery, development and commercialization of innovative therapies in combination with companion diagnostics for the treatment of cancer.
Merrimack completed the sale of its only marketed product, Onivyde, and a generic version of Doxil to Ipsen in Apr 2017 through a definitive asset purchase and sale agreement for $1.025 billion. Merrimack also announced a special cash dividend of $140 million to holders of common stock.
With sale of Onivyde, Merrimack is now a developmental stage company. The company will now focus its resources on the development of its three pipeline candidates – MM-121/seribantumab (heregulin-positive, locally advanced or metastatic non-small cell lung cancer (NSCLC), MM-141/istiratumab (pancreatic cancer) and MM-310 (solid tumor).
Merrimack’s track record has been mixed so far with a four-quarter average negative earnings surprise of 55.56%. The company has missed estimates thrice in the last four trailing quarters while beating the same once.
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 reported a wider than expected second-quarter loss. The company reported a loss of 22 cents per share, wider than our consensus estimate of 14 cents.
Revenues: Merrimack did not record any revenues in the quarter due to sale of Onivyde. The consensus estimate stood at $18 million.
Key Stats: Research and development expenses were down 28.7% y/y to $19.7 million. General and administrative expenses were up 81.8% y/y to $14.8 million during the quarter. The company completed enrollment in phase II CARRIE study on pancreatic cancer candidate, MM-141, in June. Data from the study is expected in the first half of 2018.
Share Market Activity: The shares of the company are trading 3.85% up in pre-market.
2017 Guidance: Merrimack expects its current financial resources along with anticipated milestone payments from Shire will be sufficient to fund its operations at currently forecasted spending rates into the second half of 2019.
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