Hours after becoming eligible for a hefty milestone payment, Merrimack Pharmaceuticals announced plans on Tuesday to dissolve the company and distribute the windfall among shareholders.
The only other licensing deal Merrimack has is with Elevation Oncology, which has rights to anti-HER3 antibody seribantumab under a 2019 deal. However, Elevation paused development of the experimental cancer treatment last year until it could find a partner.
Given that Merrimack doesn’t expect to receive any additional milestone payments, the company plans to shutter operations and pay investors a cash dividend between $14.65 and $15.35 per share, pending a shareholder meeting scheduled for May. Shares in Merrimack ticked down 2% on Wednesday to close at $14.67.
Merrimack is the second company this week to close shop and cash out. LianBio said Tuesday it plans to wind down operations, sell its remaining pipeline assets, and pay investors a cash dividend of $4.80 per share. The move comes just months after the company pocketed $350 million from selling off certain Asia rights for cardiac myosin inhibitor mavacamten to Bristol Myers Squibb.