Merrimack
May 1, 2014

Merrimack Pharmaceuticals Reports First Quarter 2014 Financial Results

CAMBRIDGE, Mass., May 1, 2014 (GLOBE NEWSWIRE) -- Merrimack Pharmaceuticals, Inc. (Nasdaq:MACK), a biopharmaceutical company discovering, developing and preparing to commercialize innovative medicines paired with companion diagnostics for the treatment of cancer, today announced its first quarter 2014 financial results. Merrimack will host a live conference call and webcast today, Thursday, May 1 at 8:30 a.m., Eastern Time, to provide a summary of first quarter 2014 financial results as well as discuss the positive top line results of the combination arm of MM-398's Phase 3 NAPOLI-1 study in post-gemcitabine metastatic pancreatic cancer announced this morning.

Investors and the general public are invited to listen to the call by dialing (877) 564-1301 (domestic) or (224) 357-2394 (international) five minutes prior to the start of the call and providing the passcode 37032608. A listen-only webcast of the call can be accessed in the Investors section of Merrimack's website, http://investors.merrimackpharma.com, and a replay of the call will be archived there for six weeks following the call.

Key Recent Events

Upcoming Milestones

Merrimack anticipates the following upcoming milestones:

Conferences

Merrimack expects to attend a number of investor conferences in the months ahead, including:

First Quarter 2014 Financial Results

Net loss for the first quarter of 2014 was $27.8 million, or basic and diluted net loss per share available to common stockholders of $0.27, compared with net loss for the first quarter of 2013 of $28.3 million, or basic and diluted net loss per share available to common stockholders of $0.29. This decrease in net loss was primarily attributable to four factors:

Financial Outlook

Merrimack expects its existing unrestricted cash and cash equivalents and available-for-sale securities as of March 31, 2014 of $124.2 million, anticipated interest income and reimbursement of expenses under its license and collaboration agreement with Sanofi related to MM-121 to be sufficient to fund operations and pre-commercial efforts into 2015.

About Merrimack

Merrimack is a biopharmaceutical company discovering, developing and preparing to commercialize innovative medicines paired with companion diagnostics for the treatment of cancer. Merrimack seeks to gain a deeper understanding of underlying cancer biology through its systems biology-based approach and develop new insights, therapeutics and diagnostics to improve outcomes for cancer patients. Merrimack currently has six oncology therapeutics in clinical development and three additional candidates in late stage preclinical development. For more information, please visit Merrimack's website at www.merrimackpharma.com.

Cautionary Note on Forward-Looking Statements

To the extent that statements contained in this press release are not descriptions of historical facts, they are forward-looking statements reflecting the current beliefs and expectations of management made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements include any statements about Merrimack's strategy, future operations, future financial position and future expectations and plans and prospects for Merrimack, and any other statements containing the words "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "predict," "project," "target," "potential," "will," "would," "could," "should," "continue," and similar expressions. In this press release, Merrimack's forward-looking statements include statements about the potential effectiveness and safety profile of MM-398 either alone or in combination, the potential to develop ferumoxytol as a predictive diagnostic, the potential to identify patients most likely to benefit from MM-398, the timing of availability of clinical trial data, Merrimack's ability to translate clinical data into future clinical success, anticipated milestones, including the initiation of new trials, Merrimack's presentations at upcoming investor and scientific conferences and expectations regarding the sufficiency of Merrimack's financial resources to fund operations. Such forward-looking statements involve substantial risks and uncertainties that could cause Merrimack's clinical development programs, future results, performance or achievements to differ significantly from those expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the uncertainties inherent in the initiation of future clinical trials, availability of data from ongoing clinical trials, expectations for regulatory approvals, development progress of Merrimack's companion diagnostics, availability of funding sufficient for Merrimack's foreseeable and unforeseeable operating expenses and capital expenditure requirements, and other matters that could affect the availability or commercial potential of Merrimack's drug candidates or companion diagnostics. Merrimack undertakes no obligation to update or revise any forward-looking statements. Forward-looking statements should not be relied upon as representing Merrimack's views as of any date subsequent to the date hereof. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to Merrimack's business in general, see the "Risk Factors" section of Merrimack's Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on March 4, 2014 and other reports Merrimack files with the SEC.

*Ferumoxytol, commercially available as Feraheme® (AMAG Pharmaceuticals), is an iron-oxide, super-paramagnetic nanoparticle, known to be taken up by macrophages and for exhibiting magnetic resonance imaging properties. The U.S. Food and Drug Administration has approved ferumoxytol for intravenous use as an iron replacement product for the treatment of iron deficiency anemia in adult patients with chronic kidney disease (CKD). The use of ferumoxytol in the pilot study mentioned above is for clinical investigational studies only
 
 
Merrimack Pharmaceuticals, Inc.
Unaudited Condensed Consolidated Statements of Comprehensive Loss
(in thousands, except per share amounts)
     
  Three Months Ended March 31
  2014 2013
Collaboration revenues  $ 13,034  $ 14,655
Operating expenses:    
Research and development  30,324  36,989
General and administrative  6,224   4,932
Total operating expenses  36,548  41,921
     
Loss from operations  (23,514)  (27,266)
     
Other income and expenses, net   (4,240)  (1,057)
     
Net loss  (27,754)  (28,323)
     
Less net loss attributable to non-controlling interest  (169)  (170)
     
Net loss attributable to Merrimack  $ (27,585)  $ (28,153)
     
Other comprehensive income  16  18
     
Comprehensive loss  (27,569)  (28,135)
     
Net loss per share available to stockholders - basic and diluted ($0.27) ($0.29)
     
Weighted-average common shares used in computing net loss per share available to common stockholders - basic and diluted 102,888 95,879
     
     
Merrimack Pharmaceuticals, Inc.    
Unaudited Balance Sheet Data    
(in thousands)    
     
  As of
March 31, 2014
As of
December 31, 2013
Cash, cash equivalents and available-for-sale securities $124,176 $155,202
Working capital 81,893 108,910
Total assets 164,982 192,417
Total liabilities 230,778 235,545
Total stockholders' deficit (65,964) (43,465)
   
   
   
Merrimack Pharmaceuticals, Inc.  
Unaudited Cash Flow Data  
(in thousands)  
   
  Three Months Ended March 31,
  2014 2013
Net cash used in operating activities ($31,387) ($21,196)
Net cash provided by investing activities 31,064 11,506
Net cash provided by financing activities 2,134 411
Net increase (decrease) in cash and cash equivalents 1,811 (9,279)
CONTACT: Investor Contact:



         Geoffrey M. Grande, CFA

         Investor Relations

         Merrimack

         617-441-7602

         ggrande@merrimackpharma.com



         Media Contact:



         Dana Robie

         Corporate Communications

         Merrimack

         617-441-7408

         drobie@merrimackpharma.com

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Source: Merrimack Pharmaceuticals

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