Merrimack Pharmaceuticals, a biopharmaceutical company focused on the treatment of cancer, announced terms for its IPO on Friday, with pricing set for the week of January 30th. The Cambridge, MA-based company, which was founded in 1993, plans to raise $150 million by offering 16.7 million shares at a price range of $8.00 to $10.00. At the midpoint of the proposed range, Merrimack will command a market value of $984 million. Merrimack has no commercial products and to this point all revenues have been research related. Its five product candidates are all in preclinical and clinical development. Sanofi, a multinational pharmaceutical company based in Paris, paid a license fee for one candidate and is partnering on its development. Another candidate has passed Phase 2 trials for the treatment of metastatic pancreatic cancer.
Merrimack plans to list on the NASDAQ under the symbol MACK. J.P. Morgan is the lead underwriter on the deal. Financial backers include Fidelity Investments, CSFB Next Fund, Fred Alger Management and TPG-Axon Partners.
