Merrimack Pharmaceuticals Approves Dissolution Plan and $15.10 Cash Dividend

Merrimack Pharmaceuticals, Inc. (Nasdaq: MACK) has declared that its stockholders have approved a Plan of Dissolution during a Special Meeting. As a result, the Board of Directors announced a liquidating cash dividend of $15.10 per share, which is scheduled to be paid around May 17, 2024. Merrimack's common stock will remain on NASDAQ until May 17, 2024, with delisting effective on May 20, 2024.

Gary Crocker, CEO and Chairman of Merrimack’s Board of Directors, expressed gratitude for the shareholders' support of the dissolution plan, emphasizing the company's commitment to returning milestone proceeds to its shareholders. This dissolution plan may lead to future distributions if reserved amounts are deemed unnecessary, or if additional milestones are achieved under agreements with Ipsen and Elevation Oncology.

Merrimack Pharmaceuticals, headquartered in Cambridge, Massachusetts, is a biopharmaceutical company eligible for up to $450 million in contingent milestone payments. These payments are part of the agreement related to the sale of Onivyde® to Ipsen S.A. in April 2017. Merrimack has already received $225 million of these payments, tied to the potential indication for the first line treatment of metastatic pancreatic ductal adenocarcinoma announced on March 27, 2024. The remaining potential payments include $150 million for the small cell lung cancer indication and $75 million for other potential applications that Ipsen might pursue. These payments from Ipsen are contingent upon the approval of Onivyde for additional clinical indications by the U.S. Food and Drug Administration (FDA). Ipsen is not obligated to provide Merrimack with updates on the progress of Onivyde's clinical trials beyond publicly available information.

Additionally, Merrimack is entitled to receive up to $54.5 million in milestone payments related to its sale of anti-HER3 programs to Elevation Oncology (formerly known as 14ner Oncology, Inc.) in July 2019.