Merrimack Pharma Q3 Loss Narrows, But Misses View; Stock Down

(RTTNews) - Merrimack Pharmaceuticals, Inc. (MACK) Monday reported a narrower third-quarter loss, which was worse than analysts had projected. The stock fell close to 5 percent in the extended trade.

Net loss was $28.0 million or $0.27 per share, compared to a loss of $39.6 million or $0.39 per share in the prior year.

On average, six analysts polled by Thomson Reuters expected the company to report a loss per share of $0.12 for the quarter. Analysts' estimates typically exclude special items.

Collaboration revenue increased to $28.0 million from $6.9 million last year. Analysts expected revenue of $21.79 million for the quarter.

The company attributed the revenue increase to a change in estimate of the revenue recognition period of previously-received upfront, milestone and manufacturing payments as a result of the termination of the MM-121 license and collaboration agreement with Sanofi.

Meanwhile, research and development expenses climbed 16 percent to $43.6 million.

Looking ahead, Merrimack said it expects its existing unrestricted cash and cash equivalents and available-for-sale securities as of September 30, of $153.7 million and anticipated cost sharing reimbursements from Baxter under their license and collaboration agreement related to MM-398 to be sufficient to fund operations into the second half of 2015.

Payments received from Baxter upon the achievement of milestones related to MM-398 would further extend Merrimack's cash runway, the firm added.

MACK closed unchanged at $8.70 on Monday, and dropped 4.8 percent in the extended trade.