Merrimack Pharmaceuticals Inc (NASDAQ:MACK) has unveiled a major retrenchment programme that will see its chief executive step down and almost a quarter of its workforce depart.
Robert Mulroy, chief executive for 17 years, will be replaced by chairman Gary Crocker on an interim basis until a permanent replacement is found.
Merrimack’s lead product in Onivyde, a US approved treatment for advanced pancreatic cancer sufferers, but it has a number of phase II trial results due next year and in 2018.
The cancer drug developer said today’s corporate overhaul would save US$200mln over the next two years and was part of a switch to biology-derived cancer products.
“This major restructuring will allow us to strategically align our pipeline with our core capabilities and prioritize ongoing clinical development efforts while improving our financial flexibility,” said Crocker.
Shares in Merrimack have dropped by almost a fifth this year so far.
Yasir Al-Wakeel, CFO and head of corporate development, added Merrimack was now in a much stronger financial position with a 12 months runway based on cash in hand, anticipated near term milestones and reimbursements and Onivyde profits.
Story by ProactiveInvestors