1 00:00:03,960 --> 00:00:08,280 Speaker 1: Broadcasting live to New York, Bloomberg eleven, Brio to Washington, 2 00:00:08,400 --> 00:00:13,400 Speaker 1: d C, Bloomber to Boston, BLUEMBERG twelve d to San Francisco, 3 00:00:13,520 --> 00:00:17,959 Speaker 1: Bloomberg to the countries, Joe's Exam General one nine and 4 00:00:18,079 --> 00:00:21,880 Speaker 1: around the globe the Bloomberg Radio zap and Bloomberg got gone. 5 00:00:22,200 --> 00:00:26,640 Speaker 1: This is taking Stock. Coming up on taking stock. We're 6 00:00:26,640 --> 00:00:30,680 Speaker 1: going to take stock off cancer and estimated one point 7 00:00:30,800 --> 00:00:35,320 Speaker 1: six million cases new cases of cancer will be diagnosed 8 00:00:35,400 --> 00:00:39,280 Speaker 1: in the United States this year. We're gonna talk about 9 00:00:39,360 --> 00:00:43,440 Speaker 1: battling cancer on many fronts. Bob mulroy, CEO of Merrimack 10 00:00:43,440 --> 00:00:47,560 Speaker 1: Pharmaceuticals in Cambridge, Massachusetts, as we continue our special live 11 00:00:47,600 --> 00:00:51,479 Speaker 1: broadcast ahead of the Greater Boston Chamber of Commerce Annual 12 00:00:51,560 --> 00:00:54,200 Speaker 1: Dinner tonight, let's get back to Bloomberg World. Head core 13 00:00:54,280 --> 00:00:56,280 Speaker 1: is Charlie Pallis there with a look at the day's 14 00:00:56,320 --> 00:00:59,240 Speaker 1: big news. All right, thank you very much, Kathleen, Thank you, Pim. 15 00:00:59,480 --> 00:01:02,640 Speaker 1: The DAL, SMP and Hastack all moving high right now. 16 00:01:03,240 --> 00:01:06,280 Speaker 1: SMP five indecks up twenty one points, a gain ner 17 00:01:06,360 --> 00:01:11,760 Speaker 1: of one point one percent. Energy producers, industrial shares, banks 18 00:01:11,880 --> 00:01:15,480 Speaker 1: among the strongest contributors to the rally down industrials up 19 00:01:15,520 --> 00:01:17,520 Speaker 1: one point one per sand hire by a hundred and 20 00:01:17,640 --> 00:01:20,360 Speaker 1: ninety points, and has stack up forty nine points, a 21 00:01:20,400 --> 00:01:24,640 Speaker 1: gain of one point four percent last Friday's jobs reports, 22 00:01:24,640 --> 00:01:28,119 Speaker 1: spurring speculation the Federal Reserve will adopt a slower pace 23 00:01:28,200 --> 00:01:32,240 Speaker 1: in tightening monetary policy. John Cannelly is chief economic strategist 24 00:01:32,280 --> 00:01:35,680 Speaker 1: at L p L Financial, and he told us he 25 00:01:35,720 --> 00:01:38,920 Speaker 1: sees two FED increases this year. I think over time, 26 00:01:38,959 --> 00:01:41,360 Speaker 1: I think that what the Fed did in March was 27 00:01:41,400 --> 00:01:43,080 Speaker 1: a good thing. They kind of hit the pause button 28 00:01:43,080 --> 00:01:46,360 Speaker 1: then said Okay, we're gonna do four. Roy's gonna do two, 29 00:01:46,560 --> 00:01:48,400 Speaker 1: and I think that deal was kind of cut at 30 00:01:48,400 --> 00:01:51,400 Speaker 1: the G twenty meeting in Shanghai. Couplice four. That has 31 00:01:51,440 --> 00:01:54,320 Speaker 1: helped the calm markets over the last two or three months. 32 00:01:55,040 --> 00:01:58,240 Speaker 1: But it seems like today even markets are okay with 33 00:01:58,280 --> 00:02:02,360 Speaker 1: a stronger dollar and lower oil prices and stocks her up. 34 00:02:02,800 --> 00:02:07,160 Speaker 1: Emirates Group reporting its first annual sales decline in a decade, 35 00:02:07,320 --> 00:02:11,000 Speaker 1: highlighting the strains on the world's largest international carrier is 36 00:02:11,040 --> 00:02:15,040 Speaker 1: it undergoes the breakneck expansion of its Dubai hub. Emirates 37 00:02:15,040 --> 00:02:18,160 Speaker 1: says it's under pressure from falling fairs, lower bookings from 38 00:02:18,200 --> 00:02:22,800 Speaker 1: the oil industry, and an uncertain global economic outlook. SMP 39 00:02:23,000 --> 00:02:26,560 Speaker 1: five index up twenty one now a gain of one onent. 40 00:02:26,919 --> 00:02:30,480 Speaker 1: Gold now up to to twelve sixty, gain of two 41 00:02:30,520 --> 00:02:33,320 Speaker 1: tenths of one percent. Crude hired by two point eight 42 00:02:33,360 --> 00:02:36,160 Speaker 1: percent of a dollar twenty two a barrel to forty 43 00:02:36,200 --> 00:02:40,280 Speaker 1: four dollars and sixty seven cents. It is to thirty 44 00:02:40,320 --> 00:02:42,160 Speaker 1: two on Wall Street. Now, let's take a look at 45 00:02:42,160 --> 00:02:45,320 Speaker 1: other news from around the world on Bloomberg Radio. Thank you, 46 00:02:45,400 --> 00:02:49,160 Speaker 1: Charlie from the Bloomberg Newsroom. I'm Rami Incentio. Speaking today 47 00:02:49,240 --> 00:02:52,120 Speaker 1: during a roundtable discussion on the crisis in the Middle East, 48 00:02:52,280 --> 00:02:55,600 Speaker 1: Florida Senator Marco Rubio took a swipe at Donald Trump's 49 00:02:55,639 --> 00:02:58,600 Speaker 1: NATO policy. It's a lot easier to say, for example, 50 00:02:58,720 --> 00:03:01,200 Speaker 1: you know, let's not why why do we give why 51 00:03:01,200 --> 00:03:02,799 Speaker 1: do we give all this money to NATO and these 52 00:03:02,800 --> 00:03:06,519 Speaker 1: other people that will protect him do not. And it's 53 00:03:06,560 --> 00:03:09,040 Speaker 1: easier to say that than to explain what would happen 54 00:03:09,240 --> 00:03:12,000 Speaker 1: if you didn't. And so that doesn't mean we shouldn't 55 00:03:12,000 --> 00:03:14,639 Speaker 1: do it. I just think it takes time. Rubio dropped 56 00:03:14,639 --> 00:03:16,360 Speaker 1: out of the race for the White House in March 57 00:03:16,440 --> 00:03:20,440 Speaker 1: after losing the primary in his home state. The amendment 58 00:03:20,480 --> 00:03:23,720 Speaker 1: allowing the government to collect records and emails from foreign 59 00:03:23,880 --> 00:03:28,640 Speaker 1: nationals is up for reauthorization. Elizabeth Goytean from the Brennan 60 00:03:28,720 --> 00:03:31,480 Speaker 1: Center for Justice, says that once the surveillance of a 61 00:03:31,560 --> 00:03:35,600 Speaker 1: foreigner is approved, every American that person comes into even 62 00:03:35,800 --> 00:03:39,720 Speaker 1: loose contact with, is being watched. The FBI doesn't even 63 00:03:39,760 --> 00:03:42,880 Speaker 1: need a foreign intelligence purpose to do it. The FBI 64 00:03:42,960 --> 00:03:46,560 Speaker 1: can search for evidence in criminal cases that have no 65 00:03:46,880 --> 00:03:51,280 Speaker 1: national security or foreign intelligence component whatsoever. Activists say two 66 00:03:51,320 --> 00:03:54,440 Speaker 1: air strikes in a northwestern Syrian town have killed at 67 00:03:54,520 --> 00:03:57,640 Speaker 1: least ten people and wounded many more. The air raids 68 00:03:57,720 --> 00:04:00,840 Speaker 1: came hours after a fragile ceasefire in the nearby city 69 00:04:00,840 --> 00:04:03,880 Speaker 1: of Aleppo was extended for the third time for forty 70 00:04:03,880 --> 00:04:07,200 Speaker 1: eight hours. And the NYPD is looking for a woman 71 00:04:07,240 --> 00:04:10,080 Speaker 1: in connection with the theft of a thirty five thousand 72 00:04:10,080 --> 00:04:13,280 Speaker 1: dollar diamond ring. Police say a man invited a woman 73 00:04:13,320 --> 00:04:16,000 Speaker 1: he had just met up to his hotel room inside 74 00:04:16,000 --> 00:04:19,000 Speaker 1: the Standard Hotel on Washington Street in the morning. The 75 00:04:19,040 --> 00:04:22,000 Speaker 1: woman and the ring were gone. Global News twenty four 76 00:04:22,040 --> 00:04:24,760 Speaker 1: hours a Day, powered by our journalists in more than 77 00:04:24,800 --> 00:04:27,840 Speaker 1: one fifty news bureaus around the world. From the Bloomberg 78 00:04:27,880 --> 00:04:31,240 Speaker 1: News Room, I'm Ramie in essentio, Charlie, and we thank you, 79 00:04:31,279 --> 00:04:35,200 Speaker 1: and again recapping stocks are trading higher SMP five hundred 80 00:04:35,240 --> 00:04:37,839 Speaker 1: in next up twenty one points to two thousand eighty, 81 00:04:38,080 --> 00:04:41,200 Speaker 1: a gain of one percent. I'm Charlie Pabbott and that's 82 00:04:41,279 --> 00:04:45,359 Speaker 1: a Bloomberg Business Flash. This he is taking Stock with 83 00:04:45,480 --> 00:04:49,400 Speaker 1: Kathleen Hayes and Grim Box on Bloomberg Radio. This is 84 00:04:49,440 --> 00:04:53,480 Speaker 1: Taking Stock, broadcasting live from the Boston Convention Exhibition Center 85 00:04:53,520 --> 00:04:59,159 Speaker 1: before tonight's Greater Boston Chamber of Commerce Annual Meeting. Now 86 00:04:59,200 --> 00:05:04,000 Speaker 1: for some sober ring news. The United States will spend 87 00:05:04,000 --> 00:05:08,120 Speaker 1: about a hundred and twenty five billion dollars this year 88 00:05:08,520 --> 00:05:13,119 Speaker 1: on cancer care. One point six to maybe one point 89 00:05:13,240 --> 00:05:17,640 Speaker 1: seven million new cases of cancer will be reported this year. 90 00:05:17,920 --> 00:05:22,600 Speaker 1: Cancer is a big deal for everyone. Here to help 91 00:05:22,640 --> 00:05:26,279 Speaker 1: us understand the battle against cancer is Bob mulroy. He 92 00:05:26,360 --> 00:05:29,800 Speaker 1: is the chief executive of Merrimack of Pharmaceuticals. They're based 93 00:05:30,120 --> 00:05:33,480 Speaker 1: in Cambridge, mass Sta. Mulroy, thank you very much for 94 00:05:33,600 --> 00:05:36,440 Speaker 1: joining us today. Well, it's great to be here. Tell 95 00:05:36,520 --> 00:05:40,039 Speaker 1: people who have not been paying attention to Merrimack and 96 00:05:40,160 --> 00:05:45,200 Speaker 1: your oncology and cancer work about the company and how 97 00:05:45,240 --> 00:05:49,520 Speaker 1: you're building almost a system of building blocks to fight cancer. 98 00:05:50,520 --> 00:05:52,520 Speaker 1: So Merrimack is a company that came out of m 99 00:05:52,560 --> 00:05:55,520 Speaker 1: I T in Harvard, and we use all the engineering 100 00:05:55,600 --> 00:05:58,000 Speaker 1: technologies that m I f T has developed over the 101 00:05:58,120 --> 00:06:00,960 Speaker 1: years to look at really complex as the US and 102 00:06:01,040 --> 00:06:03,040 Speaker 1: one of the things we see in cancer, especially late 103 00:06:03,040 --> 00:06:07,039 Speaker 1: States cancer, these cancers aren't driven by any one component anymore. 104 00:06:07,200 --> 00:06:10,400 Speaker 1: They're multidimensional, and so we use all of the systems 105 00:06:10,480 --> 00:06:13,000 Speaker 1: dynamics technology to come out of m I T try 106 00:06:13,040 --> 00:06:16,760 Speaker 1: and understand cancer as a multidimensional problem and then creates 107 00:06:16,760 --> 00:06:21,120 Speaker 1: solutions that address all of those dimensions. So that's merrimas core. 108 00:06:21,240 --> 00:06:23,279 Speaker 1: What we've got out of it now is fifteen different 109 00:06:23,320 --> 00:06:26,479 Speaker 1: drug programs are first is now approved and we have 110 00:06:26,600 --> 00:06:29,320 Speaker 1: that really rare thing in biotech is that we now 111 00:06:29,360 --> 00:06:32,440 Speaker 1: have two more drugs lined up in registration studies reporting 112 00:06:32,480 --> 00:06:34,680 Speaker 1: next year in the following year. So we're now at 113 00:06:34,680 --> 00:06:38,400 Speaker 1: a point of really robust productivity from the research has 114 00:06:38,440 --> 00:06:41,479 Speaker 1: created a really wonderful opportunity to address some serious cancers. 115 00:06:41,640 --> 00:06:45,000 Speaker 1: For many people have been diagnosed with pancreatic cancer, particularly 116 00:06:45,040 --> 00:06:47,680 Speaker 1: it's metastasized. It's it's all, but it's you know, the 117 00:06:48,040 --> 00:06:50,720 Speaker 1: doctors will tell you very little odds of survival. Right 118 00:06:51,120 --> 00:06:53,880 Speaker 1: that is one of your big drugs right now, you've 119 00:06:53,880 --> 00:06:57,640 Speaker 1: been making progress with that, tell us about that and 120 00:06:57,279 --> 00:07:00,040 Speaker 1: and how what kind of success if you're having I 121 00:07:00,200 --> 00:07:03,080 Speaker 1: hope you have in the future. So uh an Avide 122 00:07:03,120 --> 00:07:05,800 Speaker 1: is our first drug and that was approved last year 123 00:07:05,839 --> 00:07:07,640 Speaker 1: by the U s f d A, and it's in 124 00:07:07,640 --> 00:07:10,040 Speaker 1: a registration program all around the globe now to hopefully 125 00:07:10,080 --> 00:07:12,720 Speaker 1: be approved to be used worldwide. And an Avide was 126 00:07:12,800 --> 00:07:16,680 Speaker 1: designed to treat pancreatic cancer where our systems technologies had suggested. 127 00:07:16,680 --> 00:07:19,040 Speaker 1: The big problem with pancreatic cancer and the reason why 128 00:07:19,080 --> 00:07:22,880 Speaker 1: we've had so few drugs approved and had very low, 129 00:07:23,040 --> 00:07:26,240 Speaker 1: low and slow progress treating the disease was that the 130 00:07:26,320 --> 00:07:28,600 Speaker 1: tumors have almost a wall around them and it's hard 131 00:07:28,640 --> 00:07:32,200 Speaker 1: to get drug inside that wall. So we created a 132 00:07:32,240 --> 00:07:35,520 Speaker 1: drug that actually uses some immune cells as a as 133 00:07:35,560 --> 00:07:38,360 Speaker 1: a taxi to traffick the drug in through that wall, 134 00:07:38,560 --> 00:07:40,640 Speaker 1: get inside the tumor and have an effect. And what 135 00:07:40,720 --> 00:07:43,760 Speaker 1: we saw was a significant im prease in overall survival 136 00:07:43,760 --> 00:07:46,480 Speaker 1: and patients who haven't had a new therapy UH in 137 00:07:46,600 --> 00:07:49,760 Speaker 1: over thirty years. Just the third new drug approved and 138 00:07:49,760 --> 00:07:52,280 Speaker 1: pancreatic cancer, and now we have the opportunity to make 139 00:07:52,320 --> 00:07:55,160 Speaker 1: it available to patients all across the United States and 140 00:07:55,160 --> 00:07:58,280 Speaker 1: it's it's a really exciting time for that. Let's talk 141 00:07:58,320 --> 00:08:01,280 Speaker 1: a little business for just a moment, because you've made 142 00:08:01,280 --> 00:08:03,960 Speaker 1: a transition in the company, as you alluded to, from 143 00:08:03,960 --> 00:08:09,560 Speaker 1: a biotech research company to a commercial company. Now, maybe 144 00:08:09,640 --> 00:08:12,520 Speaker 1: investors who bought in at the very beginning they wanted 145 00:08:12,560 --> 00:08:16,360 Speaker 1: a biotech research company, how do you make that transition 146 00:08:16,440 --> 00:08:21,520 Speaker 1: on the shareholder base, but also how have you changed 147 00:08:21,560 --> 00:08:25,480 Speaker 1: your view of whether that transition really was what you 148 00:08:25,560 --> 00:08:28,480 Speaker 1: wanted or what you are happy to get out of 149 00:08:28,480 --> 00:08:32,079 Speaker 1: it now. So we're we're thrilled to be commercial. Only 150 00:08:32,200 --> 00:08:35,440 Speaker 1: only three percent of all biotechs that start actually get 151 00:08:35,480 --> 00:08:37,800 Speaker 1: a drug approved. It's a very hard thing to do, 152 00:08:38,160 --> 00:08:40,440 Speaker 1: and so to be there is a great thing. But 153 00:08:40,520 --> 00:08:42,280 Speaker 1: I think what we're trying to do with a company, 154 00:08:42,280 --> 00:08:44,760 Speaker 1: and we've tried to communicate to shareholders is the point 155 00:08:44,800 --> 00:08:46,640 Speaker 1: you made at the outset is they're treating these Late 156 00:08:46,640 --> 00:08:48,920 Speaker 1: States cancers. You need a series of building blocks. You 157 00:08:48,960 --> 00:08:51,800 Speaker 1: need this whole series of components, and Onavai gives us 158 00:08:51,840 --> 00:08:53,960 Speaker 1: one piece to that, and the drugs that we're developing 159 00:08:53,960 --> 00:08:56,520 Speaker 1: our other components where we hope to not just increase 160 00:08:56,600 --> 00:09:00,600 Speaker 1: overall survival by but by multiple fold, actually get to 161 00:09:00,640 --> 00:09:04,240 Speaker 1: that magical cure words someday by addressing these multiple components 162 00:09:04,240 --> 00:09:06,880 Speaker 1: of these tumors. And so really that's the business model 163 00:09:07,160 --> 00:09:09,839 Speaker 1: is to build these multi components, be able to use 164 00:09:09,880 --> 00:09:12,880 Speaker 1: them in the right combinations and patients to get really 165 00:09:13,320 --> 00:09:17,600 Speaker 1: significant survival outcomes, you know, not not not small increases. 166 00:09:17,640 --> 00:09:19,880 Speaker 1: And of course for for biotech companies in the industry 167 00:09:19,960 --> 00:09:21,720 Speaker 1: US bad you have to make money, right, so if 168 00:09:21,720 --> 00:09:23,680 Speaker 1: you get this big smash out of a drug, you 169 00:09:23,720 --> 00:09:25,640 Speaker 1: save lives, that's the most important thing, and you can 170 00:09:25,760 --> 00:09:29,440 Speaker 1: make money. You've got a drug in the works targeting 171 00:09:29,720 --> 00:09:33,120 Speaker 1: breast cancer, breast cancers that have not respond to their treatments, 172 00:09:33,160 --> 00:09:37,320 Speaker 1: also treatment for non small cell lung cancer, which is 173 00:09:37,320 --> 00:09:41,000 Speaker 1: a real aggressive one as well. Give me one example 174 00:09:41,040 --> 00:09:43,360 Speaker 1: of what kind of investment you have to put into it, 175 00:09:43,400 --> 00:09:45,839 Speaker 1: But then what kind of what kind of reward, what 176 00:09:45,960 --> 00:09:48,480 Speaker 1: kind of return you can get on these things? So 177 00:09:48,600 --> 00:09:51,200 Speaker 1: you know, Historically, uh, you know, if you look at 178 00:09:51,200 --> 00:09:53,559 Speaker 1: the industry as a whole, it takes up three to 179 00:09:53,640 --> 00:09:56,000 Speaker 1: five billion dollars to get one drug approved, depending on 180 00:09:56,200 --> 00:09:58,160 Speaker 1: you know what source you want to look at. So 181 00:09:58,160 --> 00:10:01,000 Speaker 1: the enormous amounts of money. One of the reasons Merrimack 182 00:10:01,080 --> 00:10:04,920 Speaker 1: was founded because using all this computing technology and engineering 183 00:10:04,920 --> 00:10:07,960 Speaker 1: analysis and m I t UM, we've reduced that by 184 00:10:08,160 --> 00:10:12,040 Speaker 1: orders of magnitude, and that um the key is if 185 00:10:12,080 --> 00:10:15,400 Speaker 1: you can increase the probability of success. Historically, only seven 186 00:10:15,400 --> 00:10:18,080 Speaker 1: of a hundred drugs that go into cancer chemical trials 187 00:10:18,160 --> 00:10:21,080 Speaker 1: get approved, and that's really poor odds and it speaks 188 00:10:21,080 --> 00:10:23,520 Speaker 1: to the complexity of the disease. If you could improve 189 00:10:23,600 --> 00:10:25,840 Speaker 1: that success rate by just ten percent, you cut the 190 00:10:25,880 --> 00:10:28,640 Speaker 1: cost of new medicines in half. So globally we're talking 191 00:10:28,640 --> 00:10:32,040 Speaker 1: about a major, major health problem with all concerned about 192 00:10:32,040 --> 00:10:34,960 Speaker 1: the price of drugs. The route through it we see 193 00:10:35,120 --> 00:10:38,199 Speaker 1: is really through innovation in in better success rates and 194 00:10:38,240 --> 00:10:41,000 Speaker 1: more precise target of medicines that increase that success rate, 195 00:10:41,040 --> 00:10:43,480 Speaker 1: lower the cost of producing the drugs, and lower the 196 00:10:43,520 --> 00:10:45,760 Speaker 1: cost of healthcare for all of us. Well more, I 197 00:10:45,760 --> 00:10:47,560 Speaker 1: thank you so very much for joining us today. He's 198 00:10:47,559 --> 00:10:51,400 Speaker 1: the CEO of Merrimack Pharmaceuticals based in Cambridge, mass As 199 00:10:51,440 --> 00:10:54,520 Speaker 1: we continue our live broadcast at the Boston Convention and 200 00:10:54,559 --> 00:11:00,880 Speaker 1: Exists Exhibition Center, This is Bloomberg Radio. 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