Merrimack Pharmaceuticals Inc (NASDAQ: MACK) is having an overwhelmingly rough start to the trading session this morning, and for good reason. The company announced that it is scrapping the development of a treatment due to poor clinical trial results. Of course, the news upset investors who are sending the stock spiraling down. Today, we’ll talk about:
- The scrapped clinical trial;
- what we’re seeing from MACK as a result; and
- what we’ll be watching for ahead.
MACK Scraps Clinical Trial
As mentioned above, Merrimack Pharmaceuticals is having an overwhelmingly rough start to the trading session after announcing that it would be scrapping a clinical development program. In a press release issued early this morning, the company announced top-line results from its CARRIE study. The CARRIE study is a Phase 2 trial evaluating the addition of MM-141 to standad-of-care treatment in patients with previously untreated metastatic pancreatic cancer and high serum levels of free Insulin-like Growth Factor-1 (IGF-1).
In the release, MACK informed investors that the trial did not meet its primary or secondary efficacy endpoints. Unfortunately, these results were consistent in all subgroups analyzed. As a result, the company announced that it would not be devoting any more resources to the development of the treatment. In a statement, Sergio Santillana, M.D., MSc., CMO at MACK, had the follwoing to offer:
Pancreatic cancer is the third leading cause of cancer-related death in the Unites States and a very difficult cancer to treat… Although we were unsuccessful in our effort to improve the standard of care for these patients, we want to express our gratitude to our investigators and our team, and, of course, to the patients and their families for their support and participation in the CARRIE study.
The above statement was followed up by Richard Peters, M.D., Ph.D., President and CEO at MACK. Here’s what he had to offer:
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.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news causes moves. In the case of Merrimack Pharmaceuticals, the news proved to be overwhelmingly negative. After all, scrapping an asset is never a good thing. So, it’s no surprise to see that upset investors are sending the stock spiraling for the bottom. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:39), MACK is trading at $5.98 per share after a loss of $3.17 per share or 34.64% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on MACK. In particular, we’re interested in following the company’s continued development of its pipeline following the failure of the CARRIE study. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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