Merrimack's (MACK) Reports Wider-than-Expected Q1 Loss
Cambridge, MA-based Merrimack Pharmaceuticals, Inc. MACK is a biopharmaceutical company focused on the discovery, development and commercialization of innovative therapies in combination with companion diagnostics for the treatment of cancer.
Merrimack sold its only marketed product, Onivyde, to Ipsen in Jan 2017 through a definitive asset purchase and sale agreement for $1 billion. Merrimack also announced a special cash dividend of $140 million to holders of common stock.
With sale of Onivyde, Merrimack is now a developmental stage company. The company will now focus its resources on the development of its three pipeline candidates – MM-121/seribantumab (heregulin-positive, locally advanced or metastatic non-small cell lung cancer (NSCLC), MM-141/istiratumab (pancreatic cancer) and MM-310 (solid tumor).
Merrimack’s track record has been mixed so far with a four-quarter average positive earnings surprise of 1.86%. The company has beaten estimates twice in the last four trailing quarters while missing twice.
Currently, Merrimack has a Zacks Rank #4 (Sell), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: Merrimack reported a wider than expected first-quarter loss. The company reported a loss of 22 cents per share, wider than our consensus estimate of 7 cents.
Revenues: Merrimack did not record any revenues in the quarter due to sale of Onivyde. The consensus estimate stood at $34.8 million.
Key Stats: Research and development expenses were down 22.9% y/y to $21.6 million. General and administrative expenses were down 13.8% y/y to $5.6 million during the quarter.
Share Market Activity: The shares of the company are trading 0.3% down in pre-market.
2017 Guidance: Merrimack expects its current financial resources along with anticipated milestone payments from Shire will be sufficient to fund its operations at currently forecasted spending rates into the second half of 2019.
Merrimack Pharmaceuticals, Inc. Price and EPS Surprise
Merrimack Pharmaceuticals, Inc. Price and EPS Surprise | Merrimack Pharmaceuticals, Inc. Quote
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