Merrimack to close out and cash in after $225M milestone

14 Feb 2024
firstwordpharma.com
License out/inDrug ApprovalPhase 3Acquisition
Hours after becoming eligible for a hefty milestone payment, Merrimack Pharmaceuticals announced plans on Tuesday to dissolve the company and distribute the windfall among shareholders.
Merrimack is set to receive $225 million from Ipsen after the FDA approved a four-drug regimen featuring OnivydeOnivyde (irinotecan liposome injection) to treat first-line metastatic pancreatic adenocarcinoma. Ipsen acquired US rights to OnivydeOnivyde from Merrimack in 2017. For more, see ViewPoints: Ipsen success provides epitaph for Merrimack.
The only other licensing deal Merrimack has is with Elevation Oncology, which has rights to anti-HER3 antibody seribantumab under a 2019 deal. However, Elevation paused development of the experimental cancer treatment last year until it could find a partner.
Given that Merrimack doesn’t expect to receive any additional milestone payments, the company plans to shutter operations and pay investors a cash dividend between $14.65 and $15.35 per share, pending a shareholder meeting scheduled for May. Shares in Merrimack ticked down 2% on Wednesday to close at $14.67.
Merrimack is the second company this week to close shop and cash out. LianBio said Tuesday it plans to wind down operations, sell its remaining pipeline assets, and pay investors a cash dividend of $4.80 per share. The move comes just months after the company pocketed $350 million from selling off certain Asia rights for cardiac myosin inhibitor mavacamten to Bristol Myers Squibb.
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