Merrimack receives $5M milestone payment from Shire

Merrimack (MACK) has received a $5M milestone payment from Shire (SHPG), triggered by the sale of Onivyde in the first major non-European, non-Asian country, pursuant to the terms of Merrimack’s asset sale to Ipsen in 2017. The terms of the company’s asset sale to Ipsen in 2017 entitled Merrimack to receive up to an aggregate of $33.0M in net milestone payments from Shire, of which Merrimack has now received $23.0M, including this milestone and the $18.0M payment in August 2018 resulting from the sale of Onivyde in two additional major European countries. Merrimack remains eligible to receive up to an additional $10.0M in milestone payments for the first patient dosed in a pivotal clinical trial of Onivyde in an indication other than pancreatic cancer. Furthermore, Merrimack is entitled to receive up to an aggregate of $450M in regulatory-based milestones from Ipsen. Merrimack expects to pass these proceeds through to stockholders, net of any taxes owed and subject to there being a sufficient surplus at that time, consisting of: $225.0M upon approval by the FDA of Onivyde for the first-line treatment of metastatic adenocarcinoma of the pancreas, subject to certain conditions; $150.0M upon approval by the FDA of Onivyde for the treatment of small cell lung cancer after failure of first-line chemotherapy; and $75.0M upon approval by the FDA of Onivyde for an additional unrelated indication.

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