Shares of Merrimack Pharmaceuticals Inc (NASDAQ:MACK) ended Friday session in red amid volatile trading. The shares closed down -0.50 points or -8.36% at $5.48 with 5.15 million shares getting traded. Post opening the session at $5.74, the shares hit an intraday low of $5.44 and an intraday high of $5.93 and the price vacillated in this range throughout the day. The company has a market cap of $649.02 million and the numbers of outstanding shares have been calculated to be 129.24 million shares.
Merrimack Pharmaceuticals Inc (MACK) announced a major corporate restructuring with the objective of prioritizing its research and development on a focused set of systems biology-derived oncology products and strengthening its financial runway. As part of this move, Merrimack is immediately implementing a 22% reduction in headcount and eliminating more than $200 million in expected costs over the next two years. In line with this restructuring, the Board of Directors has accepted the resignation of President and CEO Robert Mulroy, effective immediately.
In order to accelerate this change, the Board of Directors has appointed Chairman of the Board Gary Crocker as interim President and CEO. “The Board is committed to focusing our resources. This major restructuring will allow us to strategically align our pipeline with our core capabilities and prioritize ongoing clinical development efforts while improving our financial flexibility,” stated Mr. Crocker. “We believe this sharper focus will drive efficiency and innovation and promote the interests of not only our shareholders and employees, but also of cancer patients worldwide. The realization of shareholder value will become as intense a focus for Merrimack as our strength in innovation and development. The Board is convinced that there is tremendous inherent value within Merrimack that can be unlocked.”