Merrimack Pharmaceuticals (MACK) shares jump 8.6% pre-market after the company enters a 10-year development, license, and supply agreement with Actavis which will use Merrimack's nanoliposomal tech platform to develop products for Actavis.
The first product Merrimack will produce is the bulk form of doxorubicin HCI liposome injection; Actavis will process the finished product and commercialize it globally.
Merrimack is eligible to receive up to $15.5M under the agreement, $2M upfront with the remaining payments coming at certain milestones. Merrimack will also receive a "double digit share" of the net profits. (8-K)