merrimack-pharmaceuticals

Merrimack Pharmaceuticals’ CEO resigns and workforce cut by nearly a quarter

pharmafile | October 3, 2016 | News story | Sales and Marketing Gary Crocker, Merrimack Pharmaceuticals, Robert Mulroy 

Merrimack Pharmaceuticals announced that they would cut away 22% of their workforce and their CEO, Robert Mulroy, would leave immediately – Mulroy had occupied the position for 17 years. Chairman Gary Crocker was appointed interim chief until a permanent replacement is found. The efforts are part of a drastic plan to turn around its struggling company, with shares down 31% in the past 12 months. On the announcement of the news, shares fell 8.7% to $5.80.

The news comes on the back of a $50.8 million second-quarter loss, in August. The reasons given for the loss were put down to higher research and development expenses and interest expenses. Crocker, interim CEO, released a statement, explaining that “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”.

The company has said that most of the job cuts will be effective immediately.  According to a regulatory filing, the company had 426 full-time employees, with more than 270 employees based in research, development and manufacturing.

Ben Hargreaves

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