Merrimack: Brean Capital Highlights Key Takeaways From Management Meeting


In a research report published today to investors, Brean Capital analyst Jonathan Aschoff maintained a Buy rating on Merrimack Pharmaceuticals (NASDAQ:MACK) with a $16 price target, following management meetings yesterday where investors predominantly focused on MM-398, MM-302, and MM-121, why Baxter was chosen as an ex-US partner for MM-398, and on diagnostics and biomarkers used to optimize patient selection.

Aschoff noted, “For MM-121, its multibillion dollar market potential was noted, as well as the contribution from biomarkers that will likely best direct its usage and thus its clinical success. The heterogeneity in tumor biology makes companion diagnostics a wise addition to drug development, a notion not lost to Merrimack. We note that MM-302 is in a currently enrolling breast cancer trial (started in 3Q14) that could suffice for Accelerated Approval. MACK has a lot going on with one drug in Phase 3, three drugs in Phase 2, and two drugs in Phase 1, in addition to its preclinical drug candidates. We look forward to Merrimack’s Analyst Day in New York on November 13, and to the filing of the MM-398 NDA by YE14.”

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 14.1% and a 60.5% success rate. Aschoff has a 12.5% average return when recommending MACK, and is ranked #155 out of 3315 analysts.

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