Merrimack Pharma (MACK) Misses Q4 EPS by 4c

Merrimack Pharma (NASDAQ: MACK) reported Q4 EPS of ($0.25), $0.04 worse than the analyst estimate of ($0.21). Revenue for the quarter came in at $61.24 million versus the consensus estimate of $50.44 million.

2017 Financial Outlook

Upon the closing of the asset sale, Merrimack will receive a $575.0 million upfront cash payment from Ipsen (subject to a working capital adjustment as provided in the asset purchase and sale agreement). Merrimack expects to use these proceeds to declare and pay a special cash dividend of at least $200.0 million to stockholders and use an additional $195.1 million to redeem its senior secured notes. Additionally, if the asset sale is consummated and certain milestones are met with Shire, Merrimack expects to receive up to an aggregate of $33.0 million in net milestone payments in 2017. Merrimack believes that these potential cash inflows, along with the completion of the headcount reduction and refocused research and development efforts that were announced in January 2017, will provide financial resources sufficient to fund its operations into the second half of 2019.

For earnings history and earnings-related data on Merrimack Pharma (MACK) click here.

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