Merrimack Pharmaceuticals Inc. announced a major corporate restructuring with the objective of prioritizing its R&D 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," said Crocker.
The reduction in personnel will not impact the commercial team or the execution of ONIVYDE's commercial launch and label expansion. "This strategic shift is designed to align our resources with the programs that have the greatest potential for disruptive change in the diagnosis and treatment of cancer, as well as to significantly increase our financial flexibility," said Dr. Yasir Al-Wakeel, CFO and Head of Corporate Development.
The reduction in force was substantially completed on October 3rd and is expected to be fully completed by December 3rd. Read the full press release