CAMBRIDGE, Mass. - Merrimack Pharmaceuticals Inc. (NASDAQ:MACK) has announced its intention to delist from the NASDAQ stock exchange and dissolve the company, pending shareholder approval. The biopharmaceutical firm, known for its contingent milestone payments from drug sales, has scheduled a special meeting for stockholders on May 10, 2024, to vote on the proposed Plan of Dissolution.
If the Plan of Dissolution is approved, Merrimack estimates an initial liquidating cash dividend to stockholders in the range of $14.92 to $15.15 per share. The actual amount, expected to be finalized around May 8, 2024, is subject to stockholder approval and may vary from the estimated range. The record date for determining eligible stockholders for this dividend is planned for May 10, 2024, with the ex-dividend date set for May 15, 2024, which is also when Merrimack anticipates its stock will cease trading on NASDAQ. The payment date is projected for May 17, 2024.
Should the stockholders reject the dissolution plan, Merrimack will retract its NASDAQ delisting notice and continue the regular trading of its common stock until further notice.
The company has filed a definitive proxy statement with the Securities and Exchange Commission (SEC) concerning the dissolution and related matters. Merrimack urges investors and stockholders to read these materials carefully before voting, as they contain important information about the proposed dissolution.
Merrimack has been entitled to receive up to $450 million in contingent milestone payments following its sale of Onivyde® to Ipsen S.A. in April 2017. As of March 27, 2024, the company has received $225 million tied to a specific pancreatic cancer indication, with the potential for additional payments for other indications upon FDA approval.
The forward-looking statements in the press release, including those related to the proposed dissolution and future milestone payments, are subject to risks and uncertainties that may cause actual results to differ materially. These include the availability and amount of liquidating distributions, the adequacy of reserves to satisfy obligations, and the potential inability to resolve contingencies or liabilities favorably. The company does not undertake any obligation to update these forward-looking statements.
InvestingPro Insights
In light of Merrimack Pharmaceuticals Inc.'s (NASDAQ:MACK) planned delisting and dissolution, a closer look at the company's financial health and stock performance is provided by InvestingPro. Merrimack holds more cash than debt, a positive sign for investors as the company approaches its dissolution, suggesting a potentially smoother process in satisfying its obligations (InvestingPro Tip 0). Furthermore, the company's net income is expected to grow this year, which could influence the final liquidating dividend amount for shareholders (InvestingPro Tip 1).
InvestingPro Data shows a market capitalization of $214.2 million, indicating the size of the company in terms of its equity value. Despite a negative P/E ratio of -164.7 for the last twelve months as of Q4 2023, analysts are predicting profitability for the current year (InvestingPro Tip 8). Additionally, the stock is trading near its 52-week high at 92.76% of this peak value, which may affect investor sentiment as they consider the dissolution proposal (InvestingPro Data).
For investors looking for more detailed analysis and additional InvestingPro Tips, there are 10 more tips available at https://www.investing.com/pro/MACK. These insights could be particularly valuable in evaluating the company's prospects leading up to the special meeting for stockholders. To access these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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