Merrimack Pharmaceuticals Receives $225 Million Payment

Merrimack Pharmaceuticals, Inc., based in Cambridge, Massachusetts, recently announced a significant milestone achievement with the receipt of a $225 million payment from Ipsen, S.A. This payment was due following approval from the U.S. Food and Drug Administration (FDA) to market ONIVYDE as a first-line treatment for metastatic adenocarcinoma on the pancreas.

The Board of Directors at Merrimack has carefully evaluated the likelihood of receiving additional milestone payments under agreements with Ipsen and Elevation Oncology. It has been determined that it is unlikely any further milestone payments will be payable. As a result, a special meeting of stockholders has been scheduled for May 10, 2024, to approve a Plan of Dissolution that includes provisions for a liquidating dividend to be paid out to stockholders. The initial liquidating dividend is expected to range between approximately $14.68 and $15.30 per share.

In anticipation of any potential future milestone payments from Ipsen or Elevation Technology, should they occur despite current expectations, Merrimack plans to establish a liquidating trust for the benefit of stockholders.

It's important for investors and stakeholders to stay informed about these developments by reviewing relevant documents filed with the Securities and Exchange Commission (SEC). The proxy statement detailing information about the proposed dissolution and plan of dissolution can be accessed through the SEC website or in Merrimack's investor section at www.merrimack.com.

As part of this process, participants involved in soliciting proxies from stockholders include executive officers and directors associated with Merrimack Pharmaceuticals who may have interests tied directly or indirectly to security holdings or other factors related to these proceedings.

Merrimack Pharmaceuticals focuses on biopharmaceutical research and development efforts aimed at addressing critical medical needs, such as cancer treatments. Through its agreements with Ipsen S.A., Merrimack stands eligible for contingent milestone payments totaling up to $450 million linked primarily to Onivyde® sales completed in April 2017.

Moving forward into this new phase post-receipt of funds from Ipsen S.A., Merrimack remains committed not only to ensuring appropriate distribution among stakeholders but also to maintaining transparency regarding financial matters that impact investors' decisions.

While there are positive indications surrounding recent achievements like FDA approvals that pave the way for substantial monetary gains within specific timelines, uncertainties still exist concerning future clinical trial outcomes or regulatory hurdles that could potentially affect anticipated milestones down the line.

As we navigate through these evolving circumstances together as shareholders and key decision-makers within Merrimack Pharmaceuticals Inc., it becomes imperative now more than ever before that everyone involved exercise prudence when making choices based on available information presented forthrightly without prejudice or bias towards any particular outcome predetermined beforehand.