Merrimack Pharma (MACK) Stock Soared 236%+ on Phase 3 Trial

The Merrimack Pharmaceuticals Inc (NASDAQ: MACK) stock price soared 236% despite the lack of news from the company. The move was driven by the release of positive topline data from a phase 3 clinical study of Onivyde by Ipsen SA, a French pharmaceutical company.

Merrimack sold Onivyde to Ipsen in April 2017 and is entitled to receive milestone payments if the drug molecule is commercialised, which is now very likely after the excellent phase 3 clinical trial data.

The biopharmaceutical company’s last significant announcement was on August 3, 2022, when it reported that Ipsen, SA (IPSEY) had issued a press release regarding the phase 3 clinical trial of Onivyde as a treatment of second-line small cell lung cancer.

Despite the phase 3 clinical trial not meeting its primary endpoints, Merrimack Pharma shares did not crash since it was still running a second phase 3 clinical trial of Onivyde in first-line pancreatic ductal adenocarcinoma. The topline data was supposed to be released by the end of the year and was released earlier today.

The phase 3 clinical trial of Onivyde^® (irinotecan liposome injection) in the NALIRIFOX treatment regimen showed statistically significant improvement in overall survival compared to the nab-paclitaxel plus gemcitabine regimen. In addition, the study met its secondary endpoint of progression-free survival with a consistent safety profile.

Investors reacted positively to the news, meaning Merrimack Pharma will receive significant milestone payments once its Onivyde drug molecule is commercialised. Today’s announcement is a big win for Merrimack, given that it is a company with no employees or a physical office.

Merrimack uses external contractors to run its operations and has no employees apart from Gary Crocker, its Chairman and CEO.

So, would I buy MACK shares? Unfortunately, the short answer is no. After today’s massive spike higher, I would stay far away from Merrimack shares since such parabolic rallies are usually followed by significant pullbacks.

*This is not investment advice.

The Merrimack Pharma (MACK) stock price.