Merrimack Pharmaceuticals Inc (NASDAQ: MACK) is having an incredibly rough start to the trading session in the pre-market hours this morning, and for good reason. The company was forced to terminate a drug trial due to futility. So, it comes as no surprise that upset investors are sending the stock tumbling. Today, we’ll talk about:
- The clinical trial;
- what we’re seeing from the stock; and
- what we’ll be watching for with regard to MACK ahead.
MACK Is Falling Hard On Trial Failure
As mentioned above, Merrimack Pharmaceuticals is having an incredibly rough start to the trading session in the pre-market hours this morning after the company announced that it has terminated a clinical study. In a press release issued early this morning, the company said that it terminated the SHERLOC study due to futility.
The study was a PHase 2 clinical trial through which MACK was evaluating MM-121 in combination with docetaxel. The treatment was being assessed as an option for patient swith heregulin positive NSCLC.
The decision to terminate the trail came following an interim analysis by the independent Data Safety Monitoring Board that was triggered by the occurence of 75% of events required for trial completion. While the safety profile was in line with expectations, the treatment did not improve progression free survival in the patient population, missing its primary endpoint.
In a statement, Richard Peters, M.D., Ph.D., President and CEO at MACK, had the following to offer:
Our ability to make a swift decision regarding these results is based on our development approach of testing our targeted therapies in biomarker-defined patient populations, which allows us to accelerate the timeframe needed to obtain clear data read-outs… The data provide a definitive signal that MM-121 does not improve clinical outcomes for patients with non-small cell lung cancer and, in line with this efficient development strategy, we plan to look closely at the data as we assess the continued development of MM-121 and evaluate our pipeline more broadly.
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 leads to moves. In the case of MACK, the news proved to be overwhelmingly negative. After all, the terminated trial will likely lead to the company scrapping an asset that took massive amounts of time and money to get to this point. So, it comes as no surprise that upset investors are sending the stock tumbling down. As is normally the case, our partners at Trade Ideas were the first to alert us to the declines. Currently (9:09), MACK is trading at $3.55 per share after a loss of $1.61 per share or 31.20% 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 story surrounding the company’s plans with regard to the MM-121 asset following this trial failure. Nonetheless, we’ll continue to watch the news closely and bring it to you as it breaks!
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