NasdaqGM:MACK

Stock Analysis Report

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Executive Summary

Merrimack Pharmaceuticals, Inc. operates as a clinical stage biopharmaceutical company that targets biomarker-defined cancers.


Snowflake Analysis

Excellent balance sheet and overvalued.

Share Price & News

How has Merrimack Pharmaceuticals's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MACK's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.8%

MACK

-0.9%

US Biotechs

2.5%

US Market


1 Year Return

-43.2%

MACK

24.5%

US Biotechs

8.4%

US Market

Return vs Industry: MACK underperformed the US Biotechs industry which returned 24.5% over the past year.

Return vs Market: MACK underperformed the US Market which returned 8.4% over the past year.


Shareholder returns

MACKIndustryMarket
7 Day-3.8%-0.9%2.5%
30 Day-10.0%3.2%5.1%
90 Day15.2%13.6%2.0%
1 Year-18.7%-43.2%25.7%24.5%10.9%8.4%
3 Year-68.7%-78.1%32.2%27.8%30.5%21.9%
5 Year-94.0%-97.1%-3.4%-9.2%56.9%39.2%

Price Volatility Vs. Market

How volatile is Merrimack Pharmaceuticals's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Merrimack Pharmaceuticals undervalued compared to its fair value and its price relative to the market?

2.47x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate MACK's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate MACK's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: MACK is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.

PE vs Market: MACK is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MACK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MACK is good value based on its PB Ratio (2.5x) compared to the US Biotechs industry average (3.8x).


Next Steps

Future Growth

How is Merrimack Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

30.4%

Forecasted Pharmaceuticals & Biotech industry annual growth in earnings


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 SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Merrimack Pharmaceuticals performed over the past 5 years?

27.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MACK is currently unprofitable.

Growing Profit Margin: MACK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MACK is unprofitable, but has reduced losses over the past 5 years at a rate of 27.7% per year.

Accelerating Growth: Unable to compare MACK's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MACK is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (-4.5%).


Return on Equity

High ROE: MACK has a negative Return on Equity (-58.52%), as it is currently unprofitable.


Next Steps

Financial Health

How is Merrimack Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: MACK's short term assets ($20.0M) exceed its short term liabilities ($3.3M).

Long Term Liabilities: MACK has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: MACK is debt free.

Reducing Debt: MACK currently has no debt however we can't compare to 5 years ago as we have no data for that period.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: MACK has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if MACK has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Merrimack Pharmaceuticals's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MACK's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MACK's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MACK's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MACK's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MACK's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.1yrs

Average management tenure


CEO

Gary Crocker (67yo)

0.92

Tenure

US$95,258

Compensation

Mr. Gary L. Crocker, MBA, has been President (Principal Executive Officer) and Treasurer (Principal Financial and Accounting Officer) of Merrimack Pharmaceuticals, Inc. since June 28, 2019. He is Chief Exe ...


CEO Compensation Analysis

Compensation vs Market: Gary's total compensation ($USD95.26K) is below average for companies of similar size in the US market ($USD587.77K).

Compensation vs Earnings: Gary's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Gary Crocker
President0.92yrUS$95.26k3% $1.3m
Ulrik Nielsen
Co-Founder & Independent Director5.33yrsUS$84.48k0.17% $75.5k
Anthony Sinskey
Co-Founder and Scientific Advisorno dataUS$24.75kno data
Geoffrey Grande
Senior Director of Communicationsno datano datano data
Ellen Forest
Head of Human Resources3yrsno datano data
Fazal Khan
Senior Vice President of Manufacturing14.08yrsUS$690.77kno data
Daryl Drummond
Head of Research3.17yrsUS$817.30kno data
Timothy Surgenor
Secretaryno datano datano data

3.1yrs

Average Tenure

59yo

Average Age

Experienced Management: MACK's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gary Crocker
President0.92yrUS$95.26k3% $1.3m
Ulrik Nielsen
Co-Founder & Independent Director5.33yrsUS$84.48k0.17% $75.5k
George Demetri
Member of Scientific Advisory Board2.17yrsUS$39.38kno data
Russell Ray
Independent Director5.33yrsUS$82.04k0.0075% $3.3k
Douglas Lauffenburger
Member of Scientific Advisory Boardno datano datano data
Lee Newcomer
Member of Scientific Advisory Board2.33yrsno datano data
Peter Sorger
Chairman of Scientific Advisory Boardno datano datano data
Eric Andersen
Independent Director0.67yrno datano data
Peter Blume-Jensen
Member of Scientific Advisory Board2.17yrsno datano data
Josep Tabernero
Member of Scientific Advisory Board2.17yrsno datano data

2.3yrs

Average Tenure

62yo

Average Age

Experienced Board: MACK's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Merrimack Pharmaceuticals, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Merrimack Pharmaceuticals, Inc.
  • Ticker: MACK
  • Exchange: NasdaqGM
  • Founded: 1993
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$44.556m
  • Shares outstanding: 13.38m
  • Website: https://www.merrimack.com

Number of Employees


Location

  • Merrimack Pharmaceuticals, Inc.
  • One Broadway
  • 14th Floor
  • Cambridge
  • Massachusetts
  • 2142
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MACKNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDMar 2012
MP6NDB (Deutsche Boerse AG)YesCommon StockDEEURMar 2012
MP6NBST (Boerse-Stuttgart)YesCommon StockDEEURMar 2012

Biography

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 based in Cambridge, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/29 04:29
End of Day Share Price2020/05/28 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.