Merrimack Pharmaceuticals Inc (NASDAQ:MACK) released its first quarter 2017 financial report for the quarter closed March 2017. Richard Peters, M.D., Ph.D., the CEO and President, said that 1Q 2017 was transformative for company.
Following the strategic assessment of their business and pipeline prioritization, they emerged with set priorities as a progressed research & clinical development firm. They outlined three programs, MM-141, MM-310 and MM-121 as the most encouraging clinical plans on which they will focus their development efforts in the coming period.
Critical to this change was the assets sale to Ipsen, including Merrimack’s first commercial product ONIVYDE®. The lower operational costs and proceeds from the asset sale will define company’s path forward and enable it to close debt, pay a dividend to shareholders and fund planned operations into 2H 2019. As they look forward to the fiscal year ahead, the management believe that the considerable potential of their clinical programs in development, refined strategy and strong cash position will drive company’s long-term success.
Merrimack reported that R&D expenses in 1Q 2017 came at $21.6 million compared to $28 million for the quarter closed March 2016, a drop of $6.4 million. This decline can be attributed to the move to the refocused preclinical and clinical pipeline.
G&A expenses stood at $5.6 million for the quarter closed March 2017 against $6.5 million for the quarter closed March 2016, a drop of $0.9 million. This decline can be attributed to lower headcount pertaning to the restructuring measures recorded in 4Q 2016.
Net loss in 1Q 2017 stood at $29.7 million compared to a net loss of $38.5 million, for the quarter closed March 31, 2016. Earlier in April, Merrimack obtained upfront cash payment of a $575 million from Ipsen. These proceeds were used to redeem the $175 million in due Senior Secured Notes payable in 2022, plus almost $20 million of costs related with the redemption.