Merrimack CEO, CFO bow out, months after last clinical drug fizzles
Richard Peters MerrimackTwo months ago, Merrimack was forced to abandon its last drug in clinical trials, after an early-stage study showed that treatment with the drug, MM-310, was cumulatively toxic to patients, despite trial protocol amendments. On Monday, the ex-Sanofi executive the Cambridge, Massachusetts-based company ushered in 2017 to revive its fortunes departed.
In 2015, Merrimack $MACK secured FDA approval for its pancreatic cancer drug — Onivyde, which had a disappointing debut. It was sold to Ipsen in 2017, in parallel to a restructuring, which culminated in a new CEO — Richard Peters — a slimmer workforce and three pipeline prospects: MM-141, MM-121 and MM-310. Each of these drugs has now been relegated to the scrap heap.
Jean Franchi LinkedInIn April, after axing MM-310, the company said it was cutting jobs, but did not specify how many. It now has two preclinical drugs — MM-401 and MM-201 — left in its arsenal. Last November, the company slashed its workforce by 60%, weeks after disclosing MM-121, or seribantumab, added to docetaxel made no difference to patients with non-small cell lung cancer. This slash and burn was preceded by another flop in 2018. The company rid itself of MM-141 after it failed a Phase II combo study in pancreatic cancer.
On Monday, Merrimack said Peters was leaving the company. He will receive $743,746.21 — 12 months of his base salary — in severance, a pro-rated bonus of $294,891.15, and the company will continue paying a share of the premium for Peters’ health and dental insurance for a period of one year (unless he changes his coverage). Peters on June 25 agreed to consult with Merrimack at a rate of $30,989.43 per month to assist with its reporting obligations and the administration of remaining assets.
Gary Crocker Crocker VenturesApart from Peters, CFO Jean Franchi and board chairman Gary Crocker are also departing. Franchi gets $415,002.70 in severance, a pro-rated bonus of $77,544.30, a share paid for health and dental insurance, and consulting fees of $17,291.78 per month.
As of March 31, Merrimack had an accumulated deficit of $533.7 million; cash, cash equivalents and marketable securities of $58.5 million; and said it expects to continue to generate operating losses in the foreseeable future in a filing posted in May.
