Merrimack Plummets 30% After Pancreatic Cancer Drug Doesn't Meet Endpoints

Merrimack Pharmaceuticals Inc MACK plunged more than 30 percent Monday after management discontinued the development of MM-141.

The drug’s Phase 2 trial for MM-141 in front-line metastatic pancreatic cancer did not meet primary or secondary endpoints.

Why It’s Important

This is the second time in 18 months that Merrimack has killed a Phase 2 candidate. Its stock never recovered from the discontinuation of MM-302, which catalyzed an 80-percent drop.

With the latest failure, Merrimack will redirect its resources to the advancement of MM-121, a candidate with orphan drug designation currently involved in two Phase 2 studies for non-small cell lung cancer (NSCLC) and metastatic breast cancer. It will also heighten its focus on MM-310 engaged in a Phase 1 study in solid tumors.

"While these results are disappointing, looking forward our focus remains on the continued development of our deep, wholly-owned pipeline, including two clinical programs, MM-121 and MM-310, with data readouts expected in 2018," Richard Peters, president and CEO of Merrimack, said in a press release.

What’s Next

The company will report results from the MM-310 trial and the MM-121 study on NSCLC in the second half of the year.

At time of publication, shares were trading around $6.02, down 33 percent.

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