Merrimack, Ipsen deal

Ipsen will acquire the commercial business of Merrimack, including U.S. rights to Onivyde irinotecan and Merrimack’s generic doxorubicin product. The companies expect the deal to close this quarter. Merrimack markets Onivyde to treat metastatic pancreatic cancer in patients who progressed following gemcitabine-based therapy. The drug’s clinical program includes a Phase II trial in previously untreated metastatic pancreatic cancer, a Phase II/III trial to treat relapsed small cell lung cancer (SCLC) and a Phase I trial in breast cancer. Merrimack expects data from the pancreatic cancer trial in mid-2018. The company also plans to start the SCLC trial by year end, with preliminary data slated for mid-2019. Merrimack will receive $575 million up front and is eligible for milestones of $225 million if FDA approves Onivyde in the first-line pancreatic cancer setting, $150 million as a second-line SCLC treatment, and $75 million in another unrelated indication.

Shire plc (LSE:SHP; NASDAQ:SHPG, Dublin, Ireland) holds Onivyde's rights outside the U.S. and Taiwan. Merrimack is still eligible for $33 million in milestones from Shire tied to geographic launches and the start of a trial of Onivyde to treat SCLC. PharmaEngine Inc. (TPEx:4162, Taipei, Taiwan) retains Taiwanese rights to the nanoparticle liposome formulation of irinotecan. A source familiar with Merrimack who requested anonymity said PharmaEngine will not receive any payments via the current deal but remains eligible for milestones from Shire. ...