Merrimack (MACK) Onivyde Labeling Appears as Expected, Says Mizuho Securities
Mizuho Securities maintained a Buy rating on Merrimack Pharmaceuticals (NASDAQ: MACK) with a price target of $16. Shares dropped 20% after Merrimack announced FDA approval for MM-398. In the view of analyst Eric Criscuolo, the label was as expected, despite the Black Box warning for diarrhea and neutropenia.
"We had given MM-398 an 85% probability of success based on the positive Phase III trial and medical need, but the approval still elicits a sigh of relief, especially with the negative biotech tape," said Criscuolo.
"There is a Black Box warning for diarrhea and neutropenia, but this is in line with the labeling for Camptosar, an earlier version of irinotecan, so the inclusion in Onivyde's labeling is not surprising to us," continued the analyst.
Criscuolo added, "MACK expects ONIVYDE to be available in the United States next week. Gemcitabine-based therapy is a standard of care and is used in adjuvant, first and later lines of treatment. so the "post-gemctiabine" labeling provides a greater market opportunity than a more traditional "second-line" usage would. There are approximately 49,000 cases of pancreatic cancer each year in the U.S."
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Shares of Merrimack Pharmaceuticals closed at $10.01 yesterday.