Brean Capital Cuts Price Target for Merrimack Pharmaceuticals Inc (MACK) on Back of Onivyde Shortfall
In a research report issued Friday, Brean Capital analyst Jonathan Aschoff reiterated a Buy rating on shares of Merrimack Pharmaceuticals Inc (NASDAQ:MACK), and reduced the price target to $13 (from $16), after the company released second-quarter results, with Onivyde sales of $12.9MM which fell below consensus of $17MM.
Aschoff commented, “We are lowering our TP to $13 from $16 to reflect our moderately reduced Onivyde revenue forecast. Gross revenue from Onivyde during 2Q16 was $14.8M, representing a 13% gross to net. As of 2Q16, the vast majority of the 250 targeted priority accounts were reached and about 800 unique facilities have ordered Onivyde. Merrimack is adding about 20 new accounts per week at present. Onivyde is being used consistent with its label and is starting to replace FOLFOX in the 2nd line pancreatic setting. Onivyde is also seeing greater average duration of use given the increased comfort physicians have in using the drug in healthier patients. In July, the CHMP issued a positive opinion for Onivyde, foreshadowed months ago by Onivyde being put on the list of preferred drugs in Europe.”
As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jonathan Aschoff has a yearly average return of -10.8% and a 38% success rate. Aschoff has a -10.3% average return when recommending MACK, and is ranked #3989 out of 4090 analysts.
Out of the 8 analysts polled by TipRanks, 5 rate Merrimack Pharmaceuticals Inc. stock a Buy, while 3 rate the stock a Hold. With a return potential of 123.2%, the stock’s consensus target price stands at $12.17.
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