Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
It is not possible to calculate the future cash flow value for
Merrimack Pharmaceuticals. This is due to cash flow or dividend data being
unavailable. The share price is
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Merrimack Pharmaceuticals's earnings available for a low price, and how does
this compare to other companies in the same industry?
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Merrimack Pharmaceuticals has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.
Show me the analysis anyway
The future performance of a company is measured in the same way as past
performance, by looking at estimated
and how much profit it is expected to make.
Future estimates come from
professional analysts. Just like forecasting the weather, they don’t always get
Expected Biotechs industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare Merrimack Pharmaceuticals's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Merrimack Pharmaceuticals's earnings growth to the Germany market average as no estimate data is available.
Unable to compare Merrimack Pharmaceuticals's revenue growth to the Germany market average as no estimate data is available.
Unable to determine if Merrimack Pharmaceuticals is high growth as no earnings estimate data is available.
Unable to determine if Merrimack Pharmaceuticals is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Merrimack Pharmaceuticals's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Merrimack Pharmaceuticals's finances.
The net worth of a company is the difference between its assets and liabilities.
Merrimack Pharmaceuticals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Merrimack Pharmaceuticals's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Merrimack Pharmaceuticals's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Low level of unsold assets.
Debt is covered by short term assets, assets are 5.1x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Dr. Richard Peters, M.D., Ph.D. has been the Chief Executive Officer and President of Merrimack Pharmaceuticals, Inc. since February 6, 2017 and served as its Principal Financial Officer from June 2017 to August 21, 2017. Dr. Peters is a Harvard-trained physician-scientist. He has over 20 years of biotech (oncology and specialty care) experience including roles of increasing responsibility in medical affairs at Onyx Pharmaceuticals, Inc. and Amgen Inc. He served as Global Head of Rare Diseases and Senior Vice President at Genzyme Corporation (Sanofi Genzyme) from January 2015 to February 6, 2017 and served as its Vice President. He was responsible for a global, $3 billion per year business with 10 commercialized products and a robust, multi-product development pipeline focusing on several therapeutic areas. He joined Genzyme in 2008. He oversaw a portfolio of products that serves patients in more than 90 countries worldwide. He was a co-founder of Mednav, Inc. and served as its Chief Executive Officer. Dr. Peters served in various capacities at Sanofi Genzyme, a global pharmaceutical company, since 2008, including as Senior Vice President, Head of Global Rare Diseases Business Unit since January 2015, Vice President, Strategy Development Officer, U.S. Rare Disease Unit from May 2014 to December 2014, Vice President, Division Medical Officer, Global Oncology Division from 2011 to May 2014 and Vice President, Head of Global and U.S. Medical Affairs, Hematology and Transplant from 2008 to 2011. He served as Deputy Head for the Genzyme Global Rare Diseases Division at Genzyme Therapeutic Products Limited Partnership. He served as Senior Director of Medical Affairs at Onyx Pharmaceuticals. He served as Director of Medical Affairs at Amgen Inc. He has been a Director of Merrimack Pharmaceuticals, Inc. since February 6, 2017. He serves as Scientific and Clinical Advisor at Aura Biosciences, Inc. He served as a Director of X4 Pharmaceuticals Inc. Dr. Peters has served on the faculty/clinical staff at Harvard Medical School/Massachusetts General Hospital in Boston. He began his medical training at the Université Catholique de Louvain in Brussels, Belgium. He has served as a consulting editor for JAMA and as a contributing editor for Science and has authored over 120 research articles and editorials. Dr. Peters earned his M.D. and Ph.D. in Pharmacology from the Medical University of South Carolina and a B.S. from the College of Charleston. He completed postgraduate training at Massachusetts General Hospital and a Howard Hughes Medical Institute Fellowship in biophysics at Harvard Medical School.
Insufficient data for Richard to compare compensation growth.
Richard's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the Merrimack Pharmaceuticals management team is about average.
CFO & Treasurer
Head of Research
Co-Founder and Scientific Advisor
Senior Director of Communications
Head of Human Resources
Senior Vice President of Manufacturing
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Merrimack Pharmaceuticals board of directors is about average.
Merrimack Pharmaceuticals, Inc. operates as a clinical stage biopharmaceutical company that targets biomarker-defined cancers. The company is developing MM-310, an antibody-directed nanotherapeutic, which is in Phase I clinical trial to treat patients with solid tumors. Its preclinical product candidates include MM-401, an agonistic antibody targeting a novel immuno-oncology target; and MM-201, a stabilized agonist-Fc fusion protein targeting death receptors 4 and 5. The company has a collaboration and license agreement with Ipsen S.A. Merrimack Pharmaceuticals, Inc. was incorporated in 1993 and is headquartered in Cambridge, Massachusetts.
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