Tomahawk, WI 08/16/2014 (Basicsmedia) – Merrimack Pharmaceuticals Inc (NASDAQ:MACK) has announced the financial results for the Q2 2014. According to the reports, revenues have increased but it has not been able to generate profit during the second quarter.
Details of financial results:
Net loss for the quarter as per the reports is $18.3 million or $0.17 per share. It has performed extremely well in comparison to the same period of the previous year. Merrimack Pharmaceuticals Inc (NASDAQ:MACK) reported net loss of $30.3 million or $0.31 per share in Q2 2013. Some of the main reasons behind the reduction in loss figure over the past twelve months include-
- Hike in revenues: Total revenues of MACK increased by $22.5 million during the Q2 2014 which put a significant impact in reducing the loss figure for the same period. The MM-121 license of the company got terminated and also it is on the verge of executing collaboration agreement with Sanofi which will be effective from December 17, 2014.
- The company spent a lot on various clinical stage product candidates; therefore management decided to keep $3.3 million worth of research and development expenses apart from MM-121. Due to this step, MACK did not have to bear additional pressure of R&D expenses.
- Merrimack Pharmaceuticals Inc (NASDAQ:MACK) issued 4.50%, convertible senior notes in July, 2013. It increased the interest payment of $3.3 million during the previous year. In 2014, $2 million out of $3.3 million has imputed non-cash expense.
- The general and administration expenses of MACK increased by $2.8 million during the same period. The main reason for it was the recruitment of extra employees to support clinical and commercial development.
Although Merrimack Pharmaceuticals Inc (NASDAQ:MACK) has not been able to earn profit for last two years, but the management of the company thinks that the future will bring new opportunities. MACK expects to run its operation in next year without any hassle.