Merrimack Pharmaceuticals CEO Resigns As Company Cuts 22% Of Workforce

Merrimack Pharmaceuticals Inc. said early Monday it's Chief Executive Officer Robert Mulroy has resigned as the company also moves to cut 22% of its workforce in a major restructuring effort. The reduction in personnel--expected to be completed by Dec. 3--is an effort to prioritize Merrimack's research and development of products and strengthen its financial runway. Merrimack also plans to cut $200 million in expected costs over the next two years.. As of Jan. 31 Merrimack had 426 employees and the company said in a news release the cuts will not impact the commercial team. Merrimack board Chairman, Gary Crocker will serve as interim CEO as the company looks for a replacement. Merrimack shares are down nearly 20% in the year to date, underperforming the S&P 500 Index which is up 6%.