Mast Therapeutics Inc. ($MSTX) stock gained over 57% this year so far as the company announced its merger with specialty Pharmaceuticals company Savara Inc. The gain this year has helped the stock in recouping some of the losses it had incurred in the previous year.
Pursuant to the merger, the resulting company will be christened Savara Inc. and will be listed on NYSE. Under the terms of the agreement, stockholders of Savara would become the majority owners of Mast, and the operations of Mast and Savara would be combined.
The current Mast stockholders will collectively own approximately 24% of the resulting company. The new board will consist of five members from current board and two from Mast’s current board members.
The combined entity will focus on developing novel inhalation therapies for the treating diseases with significant unmet medical needs. The pipeline for the companies feature three product candidates, each in advanced clinical development. These product candidates are AeroVanc, Molgradex and AIR001.
The main catalysts for the company includes the start of Phase 3 study of AeroVanc for treating chronic methicillin-resistant Staphylococcus aureus pulmonary infection in cystic fibrosis patients. The study is likely to be started in the third quarter of this year. The company is also looking for European and Japanese results for Molgradex for treating pulmonary alveolar proteinosis.