Merrimack Reports Second Quarter 2021 Financial Results
August 05 2021 - 4:30PM
Business Wire
Merrimack Pharmaceuticals, Inc. (Nasdaq:MACK) (“Merrimack” or
the “Company”) today announced its second quarter 2021 financial
results for the period ended June 30, 2021.
“We are pleased to report continued reductions in our operating
expenses as well as positive overall cashflow during the quarter
due to receipt of a tax refund,” said Gary Crocker, Chairman of
Merrimack’s Board of Directors. “Both Ipsen Pharmaceuticals and
Elevation Oncology continue to report progress on separate clinical
programs which could result in future milestone payments to
Merrimack.”
Second Quarter 2021 Financial Results
Merrimack reported net loss of $0.8 million for the second
quarter ended June 30, 2021, or $0.06 per basic share, compared to
a net loss of $1.2 million, or $0.09 per basic share, for the same
period in 2020.
General and administrative expenses for the second quarter ended
June 30, 2021 were $0.8 million, compared to $1.2 million for the
same period in 2020.
As of June 30, 2021, Merrimack had cash and cash equivalents of
$14.9 million, compared to $14.0 million as of December 31, 2020.
The increase in cash position was due to a decrease of $1.8 million
in prepaid expense and other assets related to the receipt of our
federal tax refund in April 2021, as well as $0.2 million from the
exercise of stock options.
As of June 30, 2021, Merrimack had 13.4 million shares of common
stock outstanding.
Updates on Programs Underlying Potential Milestone
Payments
Ipsen Pharmaceuticals
- On July 29, 2021, as part of its H1 2021 Results Presentation,
Ipsen provided to the public an update on the RESILIENT trial of
ONIVYDE as a second line treatment for Small Cell Lung Cancer,
indicating that clinical data from this trial as well as a possible
regulatory filing are anticipated in 2022. Ipsen also provided an
update on the NAPOLI 3 trial of ONIVYDE as a first line treatment
for pancreatic cancer. Enrollment is continuing in this trial and
Ipsen indicated that clinical data as well as a possible regulatory
filing are expected in 2023
Elevation Oncology
- On June 24, 2021 Elevation Oncology announced the pricing of
its initial public offering of 6,250,000 shares of its common stock
at a public offering price of $16.00 per share, with gross proceeds
to Elevation expected to be $100 million. The anti-HER3 program
licensed from Merrimack continues to be Elevation’s lead clinical
asset.
About Merrimack
Merrimack Pharmaceuticals, Inc. is a biopharmaceutical company
based in Cambridge, Massachusetts that is entitled to receive up to
$450.0 million in contingent milestone payments related to its sale
of ONIVYDE® to Ipsen S.A. in April 2017. These milestone payments
would be payable by Ipsen upon approval by the U.S. Food and Drug
Administration (“FDA”) of ONIVYDE® for certain additional clinical
indications. ONIVYDE® is already approved by the FDA in combination
with fluorouracil (5-FU) and leucovorin (LV) for the treatment of
patients with metastatic adenocarcinoma of the pancreas after
disease progression following gemcitabine-based therapy. This
existing approval is unrelated to any future potential milestone
payments. Merrimack’s agreement with Ipsen does not require Ipsen
to provide Merrimack with any information on the progress of
ONIVYDE® clinical trials that is not publicly available. Merrimack
is also entitled to receive up to $54.5 million in contingent
milestone payments related to its sale of anti-HER3 programs to
Elevation Oncology (formerly 14ner Oncology, Inc.) in July 2019.
The Company is seeking potential acquirers for its remaining
preclinical assets.
Forward-Looking Statements
To the extent that statements contained in this press release
are not descriptions of historical facts, they are forward-looking
statements reflecting the current beliefs and expectations of
management made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995, as amended.
Forward-looking statements include any statements about Merrimack’s
strategy, future operations, future financial position, future
revenues and future expectations and plans and prospects for
Merrimack, and any other statements containing the words
“anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,”
“plan,” “predict,” “project,” “target,” “potential,” “will,”
“would,” “could,” “should,” “continue” and similar expressions. In
this press release, Merrimack’s forward-looking statements include,
among others, statements about Merrimack’s plans to seek to divest
its preclinical and clinical assets, Merrimack’s rights to receive
payments related to certain milestone events or whether such
milestones will be achieved, if at all, the sufficiency of
Merrimack’s cash resources and Merrimack’s strategic plan,
including any potential distribution of additional cash. Such
forward-looking statements involve substantial risks and
uncertainties that could cause Merrimack’s future results,
performance or achievements to differ significantly from those
expressed or implied by the forward-looking statements. Such risks
and uncertainties include, among others: Positive information about
pre-clinical and early stage clinical trial results does not ensure
that later stage or larger scale clinical trials will be
successful. For example, Onivyde® may not demonstrate promising
therapeutic effect or appropriate safety profiles in current or
later stage or larger scale clinical trials as a result of known or
as yet unanticipated side effects. The results achieved in later
stage trials may not be sufficient to meet applicable regulatory
standards or to justify further development. Problems or delays may
arise prior to the initiation of planned clinical trials, during
clinical trials or in the course of developing, testing or
manufacturing that could lead Ipsen and Elevation Oncology and
their partners and collaborators to fail to initiate or to
discontinue development. Even if later stage clinical trials are
successful, unexpected concerns may arise from subsequent analysis
of data or from additional data. Obstacles may arise or issues may
be identified in connection with review of clinical data with
regulatory authorities. Regulatory authorities may disagree with
Ipsen and Elevation Oncology’s view of the data or require
additional data or information or additional studies. In addition,
the planned timing of initiation and completion of clinical trials
based upon Onivyde® and the anti-HER Program are subject to the
ability of each of Ipsen and Elevation Oncology, respectively, to
enroll patients, enter into agreements with clinical trial sites
and investigators, and overcome technical hurdles and other issues
related to the conduct of the trials for which each of them is
responsible. Additionally, each of Ipsen and Elevation Oncology are
subject to the risk that they may not successfully commercialize
these development programs. Merrimack is also subject to the risk
that it may not have funding sufficient for its foreseeable and
unforeseeable operating expenses and capital expenditure
requirements. In addition, press releases and other public
statements by Ipsen and Elevation Oncology may contain
forward-looking statements. Merrimack undertakes no obligation to
update or revise any forward-looking statements. Forward-looking
statements should not be relied upon as representing Merrimack’s
views as of any date subsequent to the date hereof. For a further
description of the risks and uncertainties that could cause actual
results to differ from those expressed in these forward-looking
statements, as well as risks relating to Merrimack’s business in
general, see the “Risk Factors” section of Merrimack’s Annual
Report on Form 10-K filed with the SEC on March 10, 2021, any
subsequent quarterly report on Form 10-Q filed by Merrimack and the
other reports Merrimack files with the Securities and Exchange
Commission.
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version on businesswire.com: https://www.businesswire.com/news/home/20210805005726/en/
Tim Surgenor ir@merrimack.com
Merrimack Pharmaceuticals (NASDAQ:MACK)
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