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NEW YORK (TheStreet) -- Shares of Merrimack Pharmaceuticals (MACK) - Get Merrimack Pharmaceuticals, Inc. Report  were retreating 7.61% to $5.52 on heavy trading volume mid Friday afternoon as JPMorgan cut its rating on the stock to "neutral" from "overweight."

The firm also lowered the North Andover, MA-based company's price target to $7 from $8, TheFly reports. 

JPMorgan said Merrimack shares are likely to be range-bound in the near term, as key pipeline catalysts won't materialize until the 2017 fiscal second quarter or later. 

Additionally, the company's 2016 estimates are not "meaningfully beatable," JPMorgan noted. 

The biopharmaceutical company's CEO Robert Mulroy resigned earlier this week as the company announced it's cutting 22% of its workforce over the next two years. 

Merrimack discovers, develops and commercializes therapies and companion diagnostics for cancer treatment. 

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More than 4.23 million of Merrimack's shares have changed hands so far today vs. its average volume of 3.29 million shares per day.

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings team rates Merrimack as a Sell with a ratings score of D-. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

You can view the full analysis from the report here: MACK

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