J.P. Morgan Reiterates a Hold Rating on Merrimack Pharmaceuticals

By Jason Carr

In a report released yesterday, Anupam Rama from J.P. Morgan reiterated a Hold rating on Merrimack Pharmaceuticals (NASDAQ: MACK), with a price target of $7. The company’s shares opened today at $6.

Rama wrote:

“Merrimack reported a 3Q GAAP loss per share of $0.23. Of note, Onivyde net sales of $14.5M missed expectations (cons: $16.5M). Key commercial metrics for Onivyde noted on the call were: 1) 2,400 patients starts YTD; 2) ~20% post-gem market share; 3) orders from 2/3rds of target accounts; 3) a mean duration on therapy of >3.75 cycles and increasing; and 4) 80% uptake coming from 2nd/3rd line pancreatic use 3Q compared with predominantly 4th / 5th line use at launch. Regarding the overall company, Merrimack remains on track to complete its strategic pipeline review by YE16; however, it remains unclear which agents will ultimately be prioritized (MM- 302 and MM-121 data timelines could be potentially delayed).”

According to TipRanks.com, Rama is a 3-star analyst with an average return of 1.2% and a 45.8% success rate. Rama covers the Healthcare sector, focusing on stocks such as Alexion Pharmaceuticals, PTC Therapeutics, and Array Biopharma.

Merrimack Pharmaceuticals has an analyst consensus of Hold.

The company has a one year high of $9.63 and a one year low of $4.39. Currently, Merrimack Pharmaceuticals has an average volume of 2.97M.

Based on the recent corporate insider activity of 12 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of MACK in relation to earlier this year. Most recently, in July 2016, Edward J. Stewart, the Head of Commercial of MACK bought 30,000 shares for a total of $74,100.

Merrimack Pharmaceuticals, Inc. engages in discovering, developing and preparing to commercialize innovative medicines consisting of novel therapeutics paired with diagnostics for the treatment of cancer. Its offers its first commercial product, Onivyde, which is a novel encapsulation of the marketed chemotherapy drug irinotecan in liposomal formulation. The company was founded by Anthony J. Sinskey, Gavin MacBeath and Ulrik B. Nielsen in 1993 and is headquartered in Cambridge, MA.