CAMBRIDGE, Mass. - Merrimack Pharmaceuticals, Inc. (NASDAQ:MACK) announced today the receipt of a $225 million payment from Ipsen, S.A., following FDA approval for ONIVYDE as a first-line treatment for metastatic adenocarcinoma of the pancreas. This milestone payment is part of a contingent agreement from the sale of ONIVYDE in April 2017, which could total up to $450 million.
The company's board has determined that further milestone payments from its agreements with Ipsen and Elevation Oncology are unlikely. Consequently, Merrimack has scheduled a special meeting of stockholders for Friday, May 10, 2024, to vote on a Plan of Dissolution.
This plan includes a liquidating dividend to shareholders, expected to be between $14.68 and $15.30 per share. Additionally, a liquidating trust will be established to benefit stockholders in the event of any future milestone payments.
Merrimack filed a definitive proxy statement with the SEC on March 21, 2024, regarding the proposed liquidation and dissolution. Stockholders are urged to read this document, which contains important information about the dissolution process. The proxy statement and other relevant materials will be available on the SEC's website and Merrimack's website.
The company's executive officers and directors may be participants in the solicitation of proxies for the upcoming special meeting. Detailed information about these individuals is included in the proxy statement and the company’s annual report filed on March 9, 2024, as well as subsequent filings on March 21, 2024.
Merrimack Pharmaceuticals is a biopharmaceutical company that has been entitled to receive milestone payments related to the sale of its product Onivyde and anti-HER3 programs. The recent FDA approval triggered a $225 million payment, with the potential for additional payments if further clinical indications are approved.
The forward-looking statements in this press release, such as the proposed dissolution and future milestone payments, are based on current expectations and are subject to risks and uncertainties that may cause actual results to differ. These risks include the timing and amount of liquidating distributions, the adequacy of reserves, and potential unknown liabilities.
This article is based on a press release statement from Merrimack Pharmaceuticals, Inc.
InvestingPro Insights
Merrimack Pharmaceuticals, Inc. (NASDAQ:MACK) has recently been in the spotlight due to the significant milestone payment received for ONIVYDE. As the company approaches a potential dissolution, investors are closely monitoring its financial health and stock performance. Here are some key insights based on real-time data from InvestingPro and InvestingPro Tips:
InvestingPro Data reveals Merrimack's Market Cap stands at $214.63 million, indicating the size of the company in terms of market value. The Price / Book ratio as of the last twelve months leading up to Q4 2023 is 11.43, which suggests that the stock is trading at a high multiple of its book value. Additionally, the stock is trading near its 52-week high, with the Price % of 52 Week High at 92.64%.
Two InvestingPro Tips can provide further context for investors considering Merrimack's future prospects. Firstly, Merrimack holds more cash than debt on its balance sheet, which could be a positive sign for investors, especially in light of the company's potential liquidation and distribution plans. Secondly, analysts predict the company will be profitable this year, which may influence the stock's performance as the company navigates through its proposed dissolution.
For investors looking for more detailed analysis and additional insights, there are 11 more InvestingPro Tips available, which can be accessed at https://www.investing.com/pro/MACK. To enhance your investing strategy with these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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