CAMBRIDGE, Mass. - Merrimack Pharmaceuticals Inc. (NASDAQ:MACK) has announced that it will receive a milestone payment of $225 million from Ipsen SA following the U.S. Food and Drug Administration's approval of Onivyde for the first-line treatment of metastatic pancreatic ductal adenocarcinoma. This payment is part of an asset purchase agreement from 2017 and is due by March 29, 2024.
The FDA's approval of Onivyde, in combination with other chemotherapy agents, comes after several years of clinical trials and regulatory processes spearheaded by Ipsen since acquiring the technology from Merrimack. This approval triggers the substantial milestone payment as stipulated in the agreement.
Gary Crocker, Chairman of Merrimack's Board of Directors, stated that the company plans to convene a Special Meeting of Stockholders by May 2024 to approve a corporate dissolution plan. Following this, Merrimack expects to issue a liquidating dividend to its shareholders, currently estimated to be between $14.65 and $15.35 per share, in late spring or early summer.
The board has assessed the likelihood of future milestone payments from the agreements with Ipsen and Elevation Oncology and determined that no further payments are expected. Consequently, the company is preparing to dissolve, which includes setting up a liquidating trust for shareholders in the rare event of any future payments.
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