Tom N.
The AFP protein has strong potential in MS and MG, entirely
different indications than what Merrimack studied. We believe
that this asset has good potential to attract
partnering/funding interest. We stated our reasons for the
clinical potential and larger commercial potential in our press
release. We are very encouraged by the published literature on
AFP’s potential efficacy in MS and MG as well as the proven
safety profile developed so far by Merrimack’s studies. In the
meantime, there is no incremental cash expenditure to us and,
as you may recall by reviewing our previous quarterly reports,
the Merrimack contract revenues had come to an end.
The basis for trading assets (AFP for private equity), is that
each party believes that they can do more with the swapped
assets than is possible without the trade. Merrimack’s
programs appear to now be focused in oncology with no remaining
substantial activity in autoimmune diseases.
You may want to refer to the lack of IPO activity in our
industry as an indicator of the potential to liquidate
Merrimack private equity for cash, which you have presented as
if it were a realistic alternative that we could have acted
on. Evaluating alternatives is part of our diligence when
making these decisions.
AI
