Merrimack Pharmaceuticals Inc (NASDAQ:MACK) has started operating as a new, refocused clinical and research development firm in connection with closure of its previously reported deal with Ipsen S.A. valued at up to around $1.02 billion. Under the agreement terms, the company sold to Ipsen its preliminary commercial product, ONIVYDE®, including commercialization rights in the United States and its licensing deal with Shire plc, and its advancement, license and supply deal with Actavis for a generic version of HCI liposome injection that is commercialized in the U.S. as DOXIL®.
Merrimack obtained cash of $575 million upon closing and is entitled to obtain up to $450 million in additional regulatory approval-based payments. Merrimack will retain the rights to get net milestone payments following its exclusive licensing deal with Shire plc for the former United States commercialization and development of ‘ONIVYDE’ for up to $33 million.
Richard Peters, M.D., Ph.D., the CEO and President of Merrimack, reported that the completion of this sale records their first day as a new company: a refocused clinical and research development firm, with a promising pipeline that is set for continued stockholder value creation and long-term success.
Today, they have an increasingly sustainable financial structure compared to any point in Merrimack’s history. It will enable company to offer considerable cash returns to their stockholders while funding long-term corporate strategies and objectives into 2H2019.
The company is moving forward focused on MM-141, MM-121 and MM-310, the three clinical programs that they consider have the increased probability of success and the best anticipated return on investment.
Merrimack’s management team and board is confident in the remarkable opportunities for success in their focused pipeline on behalf of cancer patients across the world and as a source to offer additional value to their stockholders. With the closure of the Ipsen deal, the company is prioritizing three clinical programs.