Merrimack: MM-398 Ex-US Deal – Largely Resolves A Broad Pipeline’s Cash Overhang, Says Brean Capital


In a research report released Wednesday, Brean Capital analyst Jonathan Aschoff reiterated a Buy rating on Merrimack Pharmaceuticals (NASDAQ:MACK) with a $16 price target, as the company entered into a development and commercialization partnership with Baxter for MM-398.

Aschoff explained, “Future MM-398 development will be decided by a joint Merrimack/Baxter steering committee, and at least $100 million of the money from Baxter is earmarked for future MM-398 development. The tiered royalty rate to Merrimack on net ex-US sales of MM-398 ranges from the low double-digits to the low 20s. At its upcoming November Analyst Day, Merrimack will discuss the US commercial strategy for MM-398 as well as further describe additional indications under consideration for MM-398. Merrimack plans to submit an NDA for MM-398 by YE14 based on the positive results from the Phase 3 NAPOLI-1 trial. The proposed label will be for patients with metastatic pancreatic cancer who previously received gemcitabine. Baxter will initiate ex-US filings of MM-398 in 2015.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jonathan Aschoff has a total average return of 13.8% and a 49.3% success rate. Aschoff is ranked #233 out of 3300 analysts.

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