Merrimack Pharma Scraps Sale Plan After Review, Cuts Workforce to Extend Cash Runway

Merrimack Pharmaceuticals (MACK) said on Thursday it will restructure the company, including cutting its workforce and the board, to extend its cash runway into 2027 and pay a special dividend following a strategic review that also included a sale of the company.

The company said its team worked with potential counterparties, but decided not to move forward because the terms provided insufficient value to shareholders, adding that it would sell its anti-Her3 monoclonal antibody programs, MM-121 and MM-111, for up to $58.0 million, consisting of $3.5 million in upfront payment and up to $54.5 million in milestone payments.

“The best outcome available for our shareholders is to restructure the Company such that our cash runway could extend into 2027, when we estimate the longest-term potential Ipsen milestone may be achieved; as well as to authorize a special cash dividend,” said Chairman Gary Crocker.