Mast Therapeutics Inc (NYSEMKT:MSTX) and Savara Inc., an emerging specialty pharmaceutical firm focused on the cure of rare respiratory diseases, reported that the two firms have finalized a definitive merger deal, under which the shareholders of Savara would turn to be the majority owners of Mast Therapeutics, and the operations of two companies would be combined. Depending on the stockholder nod, the combined firm will plan a pipeline of unique inhalation therapies for the cure of diseases with considerable unmet medical needs, showcasing three product candidates in advanced clinical development.
The combined entity pipeline will comprise AeroVanc, which is an inhaled dry-powder vancomycin to cure chronic MRSA pulmonary infection in cystic fibrosis in preparation for a Phase III trial. It will also include Molgradex, which is an inhaled nebulized GM-CSF to cure pulmonary alveolar proteinosis presently in Phase 2/3 advancement. Next it comprises AIR001, a solution to cure heart failure with HFpEF currently in Phase II development.
Brian M. Culley, the Director and CEO of Mast Therapeutics, reported that following an extensive assessment of strategic options and a thorough process, its Board of Directors decided to combine with Savara. They believe the proposed deal offers an attractive opportunity for their shareholders to get value appreciation from an expanded pipeline and positions the firm for short-term as well as long-term growth through a triad of late-stage clinical resources with significant forthcoming milestones.
The company is thrilled for the prospects of the combined firm and consider that Savara’s management team is all set to support the pipeline toward regulatory nods and commercialization in the U.S. and EU.
Rob Neville, the CEO and Chairman of Savara added that this merger is transformative for them and marks their second transaction in a year, expanding pipeline of inhaled therapies for grave and life-threatening diseases. Molgradex and AeroVanc are orphan-designated offerings in late-stage development, and they find Mast’s AIR001 plan potentially adding considerable value to their pipeline with a modest capital expenditure in 2017.