Time New York: Tue 19 Sep 14:58 pm  |  Save 15% on H&R Block Online

  
caticonslite_bm_alt

Merrimack’s (MACK) Reports Wider-than-Expected Q2 Loss

Zacks

Cambridge, MA-based Merrimack Pharmaceuticals, Inc. MACK is a biopharmaceutical company focused on the discovery, development and commercialization of innovative therapies in combination with companion diagnostics for the treatment of cancer.

Merrimack completed the sale of its only marketed product, Onivyde, and a generic version of Doxil to Ipsen in Apr 2017 through a definitive asset purchase and sale agreement for $1.025 billion. Merrimack also announced a special cash dividend of $140 million to holders of common stock.

With sale of Onivyde, Merrimack is now a developmental stage company. The company will now focus its resources on the development of its three pipeline candidates – MM-121/seribantumab (heregulin-positive, locally advanced or metastatic non-small cell lung cancer (NSCLC), MM-141/istiratumab (pancreatic cancer) and MM-310 (solid tumor).

Merrimack’s track record has been mixed so far with a four-quarter average negative earnings surprise of 55.56%. The company has missed estimates thrice in the last four trailing quarters while beating the same once.


Currently, Merrimack has a Zacks Rank #3 (Hold), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: Merrimack reported a wider than expected second-quarter loss. The company reported a loss of 22 cents per share, wider than our consensus estimate of 14 cents.

Revenues: Merrimack did not record any revenues in the quarter due to sale of Onivyde. The consensus estimate stood at $18 million.

Key Stats: Research and development expenses were down 28.7% y/y to $19.7 million. General and administrative expenses were up 81.8% y/y to $14.8 million during the quarter. The company completed enrollment in phase II CARRIE study on pancreatic cancer candidate, MM-141, in June. Data from the study is expected in the first half of 2018.

Share Market Activity: The shares of the company are trading 3.85% up in pre-market.

2017 Guidance: Merrimack expects its current financial resources along with anticipated milestone payments from Shire will be sufficient to fund its operations at currently forecasted spending rates into the second half of 2019.

More Stock News: Tech Opportunity Worth $386 Billion in 2017

From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.

Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

To read this article on Zacks.com click here.

Zacks Investment Research
<-- You can share this post with your network,
or give us your opinion and leave a comment.
Be sure to check our RSS feeds for updates.