Merrimack Pharma (MACK) Misses Q2 EPS by 7c

Merrimack Pharma (NASDAQ: MACK) reported Q2 EPS of ($0.40), $0.07 worse than the analyst estimate of ($0.33). Revenue for the quarter came in at $33.7 million versus the consensus estimate of $30.97 million.

Financial Outlook

In an effort to provide reconciliations to GAAP financial measures, Merrimack clarifies:

• Previous guidance on the achievement of $46.5 million of net milestones in 2016 related to ONIVYDE is comprised of the anticipated achievement of $85.0 million of milestone obligations from Shire and $38.5 million of offsetting milestone obligations to PharmaEngine. Of the anticipated $85.0 million of milestone obligations from Shire, $75.0 million are expected to be classified as substantive milestones that would increase license and collaboration revenues and the remaining $10.0 million are expected to be classified as non-substantive milestones that would be recognized through Merrimack's proportional performance revenue recognition model; and
• Previous guidance for aggregate research and development and selling, general and administrative expenses for 2016, when calculated in accordance with GAAP, was in the range of $263.5 million to $283.5 million, which included the anticipated achievement of $38.5 million of milestone obligations to PharmaEngine. This corresponds to Merrimack's previously disclosed guidance that aggregate research and development and selling, general and administrative expenses, excluding anticipated milestone obligations to PharmaEngine, a non-GAAP financial measure, would be in the range of $225.0 million to $245.0 million for 2016.

With respect to its fiscal 2016 guidance, Merrimack:

• Lowers its previously provided expense guidance range by $20.0 million, such that Merrimack now anticipates aggregate research and development and selling, general and administrative expenses for 2016, when calculated in accordance with GAAP, to be in the range of $243.5 million to $263.5 million. Excluding anticipated milestone obligations to PharmaEngine of $38.5 million, this corresponds to a range of $205.0 million to $225.0 million for 2016, which is a non-GAAP financial measure.

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

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