In a deal that could earn the Cambridge, Mass.-based pharmaceutical company over $1.03 billion, Merrimack Pharmaceuticals (NSDQ:MACK) said yesterday that it is selling its liposome injection cancer drugs, Onivyde and generic Doxil, to Ipsen (EPA:IPN). Merrimack is also slashing its employee headcount down to just 80 people, after laying off 22% of its 400 employees last October. As a part of the restructuring, the company will focus on its non-small cell lung cancer drug MM-121, metastatic pancreatic cancer program MM-141 and its antibody-directed nanotherapeutic MM310.
According to the deal, Merrimack will receive $575 million in cash as upfront payment and up to $450 million in additional milestone payments based on regulatory approvals. The pharmaceutical company could also earn up to $33 million in payments from its exclusive licensing agreement with Shire for the development and commercialization of Onivyde.