Merrimack grants Baxter rights to MM-398

Merrimack Pharmaceuticals Inc. (NASDAQ:MACK) granted Baxter International Inc. (NYSE:BAX) exclusive rights outside of the U.S. and Taiwan to develop and commercialize MM-398. The nanoparticle liposome formulation of irinotecan has completed Phase III testing in metastatic pancreatic cancer patients who failed prior gemcitabine-based therapy. Merrimack expects to submit an NDA to FDA in 2014, and Baxter expects to submit regulatory applications outside of the U.S. beginning in 2015.

Merrimack will receive $100 million up front and is eligible to receive up to $870 million in milestones related to multiple indications, plus tiered, escalating royalties from sub-teen double-digits to low-twenties percentages. Merrimack has exclusive, worldwide rights to MM-398 from PharmaEngine Inc. (GreTai:4162) outside of Taiwan, where PharmaEngine retains rights. ...