Before we get into MACK, one biotech stock that could soon be the talk of Wall Street is OncBioMune Pharmaceuticals, Inc. (OTCMKTS:OBMP). Did you know that OncBioMune Is Submitting Clinical Trial of World’s First Early-Stage Prostate Cancer Vaccine to The Cancer Therapy Evaluation Program (CTEP) at the National Cancer Institute ? Click HERE to Read More
Getting back to Merrimack Pharmaceuticals Inc (NASDAQ:MACK), MACK signed a $1.025 billion pact with Ipsen for selling its vital products, ONIVYDE® and DOXIL®. The deal has created much buzz in the market; especially since the two products are of much importance to this company. The $1.025 billion deal, along with $33 million in net milestone payments has allowed Merrimack to divest its two important assets, ONIVYDE® and DOXIL®.
Divesting two key assets
The definitive asset purchase and sale agreement calls for Merrimack Pharmaceuticals to sell the firt commercial product of company, ONIVYDE®. This allows Ispen, an exclusive U.S. commercialization license to sell this product under its brand name. Meanwhile, the company has also signed a Shire plc licensing agreement.
Apart from ONIVYDE®, the company, under the terms of this agreement, will also offload doxorubicin hydrochloride (HCI) liposome injection’s generic version, DOXIL®. This means that Ipsen will be selling DOXIL® in the U.S. with its name. The company has signed an Actavis LLC development, license and supply agreement for this purpose.
2017- The year of lighter product line for Merrimack
The deal is expected to be completed this year by the end of first quarter, i.e., by March 2017. The closing conditions apply to the deal. Apart from regulatory clearances, Merrimack will have to seek shareholders’ nod for the agreement.
Clearly, 2017 has started off in an eventful way for the company. Saying that the year may possibly be lighter for Merrimack Pharmaceuticals, as far as product line is concerned, will not be completely false. Nevertheless, it is taking up MM-121, MM-141 and MM-310 programs seriously. The company is riding the higher hopes for these programs and is expecting them to fetch highest return on investment.
These programs are largely focussed on cancer treatments and Merrimack Pharmaceuticals agreement to divest previous assets doesn’t seem to out of focus. The company is planning to keep complete attention on new programs, which it hopes, to fetch enormous revenue in the months to come.