Merrimack Pharmaceuticals Inc. is selling certain oncology assets to newly formed biotechnology 14ner Oncology Inc. for $58 million following completion of its strategic review.
The deal includes MM-121 and MM-111, Merrimack's anti-human epidermal growth factor receptor 3, or anti-Her3, monoclonal antibody programs.
Under the agreement, venture capital-backed 14ner Oncology will make an up-front payment of $3.5 million in cash and up to $54.5 million in contingent milestone payments.
Closing of the asset sale is expected to occur June 24, subject to the completion of an equity financing by 14ner Oncology.
In connection with its completed review, Merrimack decided to discontinue discovery efforts on its remaining preclinical programs MM-201 and MM-401.
Additionally, the company plans to reduce its board size to be better aligned with the nature of its continuing operations.
In November 2018, the Cambridge, Mass.-based oncology company said it will reduce its workforce by about 60% as part of a program to reduce expenses. The workforce reduction will substantially be completed by June 28, the company noted.