Merrimack Pharmaceuticals Inc. Sets New IPO Terms, Aiming to Raise Less $  
3/28/2012 8:23:31 AM

Boston Business Journal by Kyle Alspach, VC Editor

Merrimack Pharmaceuticals has set new terms for its initial public offering of stock, after postponing its IPO plans in February, IPO tracker Renaissance Capital reported.

The Cambridge-based biotech, which is developing several potential treatments for cancer, had previously sought to raise up to $166 million through an IPO, selling shares at between $8 and $10.

The company is now targeting a $100 million IPO raise by selling shares at $7 each, Renaissance Capital said.

Merrimack is joined by two other Massachusetts biotechs in registration for an IPO — Cambridge-based Radius Health, which filed with the SEC in February, and Waltham-based TESARO, which filed last week. Cambridge biotech Verastem completed its$55 million IPO in January.

Merrimack plans to list on the Nasdaq under the symbol "MACK." J.P. Morgan is the lead underwriter on the deal.

Founded in 2000, the company has five products in clinical trials. Its lead product is a potential treatment for pancreatic cancer which the company licensed from a Taiwanese firm this past May.

The company raised $77 million in a seventh round of venture funding last April, bringing its total venture investment to about $175 million.

Backers include Credit Suisse First Boston Next Fund Inc., Crocker Ventures, Jennison Associates LLC, TPG-Axon Capital and WT Investment Advisors Fund L.P.