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Merrimack Reports Second Quarter 2013 Financial Results

Second Quarter 2013 Financial Results

  • Net loss for the second quarter of 2013 was $30.3 million, or basic and diluted net loss per share available to common stockholders of $0.31, compared with net loss for the second quarter of 2012 of $20.1 million, or basic and diluted net loss per share available to common stockholders of $0.22.
  • Collaboration revenues for the second quarter of 2013 were $18.5 million, compared to $12.1 million for the second quarter of 2012, an increase of $6.4 million, or 53%. This increase resulted from increases in development services and manufacturing revenues recognized under the 2009 license and collaboration agreement with Sanofi for the development and commercialization of MM-121.
  • Research and development expenses for the second quarter of 2013 were $42.5 million, compared to $28.8 million for the second quarter of 2012, an increase of $13.7 million, or 48%. This increase was primarily attributable to the following:
  • $5.5 million of increased MM-121 spending primarily due to increased enrollment and costs associated with our ongoing clinical trials;
  • $4.7 million of increased MM-398 spending primarily due to increased enrollment and costs associated with our ongoing Phase 3 clinical trial;
  • $1.1 million of increased MM-141 spending primarily due to the commencement of a Phase 1 clinical trial in the second half of 2012 and timing of manufacturing activities;
  • $0.9 million of increased MM-111 spending primarily due to the initiation of a Phase 2 clinical trial;
  • $0.9 million of increased spending on preclinical, general research and discovery primarily due to an increased number of preclinical programs in our pipeline and increased costs associated with each preclinical program as these programs approach clinical development; and
  • $0.7 million of increased stock compensation cost related to the annual grant of stock options to employees.
  • General and administrative expenses for the second quarter of 2013 were $5.1 million, compared to $3.6 million for the second quarter of 2012, an increase of $1.5 million, or 42%. This increase was primarily related to an increase in labor and labor-related costs, including stock compensation expense, as well as efforts to prepare for potential commercialization of MM-398.
  • Other income and expenses, net for the second quarter of 2013 was $1.1 million of expense, compared with $0.2 million of income for the first quarter of 2012, a decrease of $1.3 million. This decrease was primarily related to interest expense from Merrimack's term loan with Hercules Technology Growth Capital, Inc., which closed in the second half of 2012.  

Financial Outlook

Based on current operating plans, Merrimack expects its existing unrestricted cash and cash equivalents and available-for-sale securities on hand as of June 30, 2013 of $62.1 million, anticipated interest income, funding under its license and collaboration agreement with Sanofi related to MM-121 and net proceeds of $147.4 million from the concurrent sale of common stock and convertible notes in July 2013 to be sufficient to fund operations into 2015.

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