Merrimack Pharmaceuticals Inc (NASDAQ:MACK), a biopharmaceutical company discovering, developing and preparing to commercialize innovative medicines paired with companion diagnostics for the treatment of cancer, today announced its first quarter 2015 financial results. Merrimack will host a live conference call and webcast today, Thursday, May 7 at 4:30 p.m., Eastern time, to provide an update on Merrimack’s progress as well as a summary of these results.
Key Recent Events
- Completion of submission of a New Drug Application to the U.S. Food and Drug Administration (FDA) for MM-398;
- Filing of a Marketing Authorization Application to the European Medicines Agency for MM-398 by Baxter;
- Initiation of a randomized, double-blinded, placebo-controlled Phase 2 clinical trial of MM-141 in combination with nab-paclitaxel and gemcitabine, versus nab-paclitaxel and gemcitabine alone, in front-line metastatic pancreatic cancer with patients with high serum levels of free IGF-1; and
- Presentation of preclinical and clinical data on MM-302, MM-141, MM-121 and MM-131 at the 2015 American Association for Cancer ResearchAnnual Meeting in Philadelphia, including oral presentations on Phase 1 clinical trials of both MM-302 and MM-141.
Merrimack anticipates the following clinical milestones in 2015:
- Initiation of a clinical trial of MM-398 in front-line metastatic pancreatic cancer;
- Initiation of a clinical trial of MM-398 in front-line HER2-negative gastric cancer;
- Continued enrollment in HERMIONE, a Phase 2 clinical trial designed to support a potential Accelerated Approval application to the FDA for MM-302 in patients with HER2-positive metastatic breast cancer; and
- Continued enrollment in a Phase 2 clinical trial of MM-121 in patients with heregulin positive, locally advanced or metastatic non-small cell lung cancer.
First Quarter 2015 Financial Results
Net loss for the first quarter of 2015 was $34.4 million, or basic and diluted net loss per share available to common stockholders of $0.32, compared with net loss for the first quarter of 2014 of $27.8 million, or basic and diluted net loss per share available to common stockholders of $0.27. This increase in net loss was primarily attributable to the following factors:
- $5.4 million of increased research and development expense primarily associated with $4.0 million of increased expenses related to MM-398 and $2.1 million of increased expenses related to preclinical, general research and discovery activities; and
- $3.0 million of increased general and administrative expense primarily attributable to increased infrastructure and personnel costs as Merrimack prepares for the potential commercialization of its product candidates and increased facility-related costs.
These increases in expenses were partially offset by $1.8 million of increased collaboration revenues primarily attributable to $14.8 million of revenue recognized related to Merrimack’s collaboration with Baxter, which was entered into during the third quarter of 2014, offset by decreased revenue due to the termination of Merrimack’s collaboration with Sanofi effective December 17, 2014.
Merrimack expects to be able to fund operations into 2016 through its unrestricted cash and cash equivalents and available-for-sale securities of $91.8 million as of March 31, 2015, anticipated cost sharing reimbursements from Baxter and the anticipated receipt of $66.5 million of net milestones related to MM-398 from Baxter in 2015, after offsetting payments to PharmaEngine. Any payments received from additional business development would further extend Merrimack’s cash runway.
Upcoming Investor Conferences
Merrimack will attend the following investor conferences this summer:
- Jefferies’ 2015 Global Healthcare Conference on Tuesday, June 2 in New York;
- Cantor Fitzgerald Healthcare Conference on Wednesday, July 8 in New York; and
- BMO Capital Markets 3rd Annual Biotech Corporate Access Day on Tuesday, July 28 in Boston. (Original Source)
Shares of Merrimack closed at $11.217, down $0.003 or 0.02%. MACK has a 1-year high of $13.84 and a 1-year low of $5.53. The stock’s 50-day moving average is $12.21 and its 200-day moving average is $10.62.
On the ratings front, Cantor Fitzgerald analyst Daniel Brims reiterated a Buy rating on MACK, with a price target of $16, in a report issued on February 26. The current price target implies an upside of 42.5% from current levels.
According to TipRanks.com, Brims has a total average return of -6.4%, a 30.0% success rate, and is ranked #3318 out of 3594 analysts.
Merrimack Pharmaceuticals Inc is engaged in discovering, developing and preparing to commercialize medicines consisting of novel therapeutics paired with companion diagnostics for the treatment of cancer.