In the last trading session, the stock price of Mast Therapeutics Inc (NYSEMKT:MSTX) gained more than 5% to close the day at $0.111. With this the stock has managed to recoup a part of its losses recorded in the last week.
In the 3Q2016 conference call, the CEO of Mast Therapeutics reported the engagement of an investment bank to help know strategic opportunities to enhance shareholder value. The firm reported on November 21 that it is assessing strategic options – a reverse merger with a firm; capitalizing on the EPIC database; and advancing AIR001 development.
Clinical studies on AIR001 targeting heart failure with HFpEF are being performed through grants from renowned heart/lung institutions, as no validated therapeutic agents are accessible. AIR001’s preceding owner had the backing of a $250 million contract with Novartis. Novartis canceled the contract because it performed a major reorganization, not because of the failure of drug.
As of close of September 2016, Mast posted cash of $26 million. Closing the EPIC-related initiatives will minimize operating costs to $8 million -$9 million per year from $32 million – $34 million. Mast Therapeutics is developing AIR001 for the patients suffering with heart failure with HFpEF and other related indications impacting millions of subjects in the U.S. and internationally.
On September 21, the company reported that vepoloxamer missed the primary objective in the 388-patient Phase 3 EPIC study to cure sickle cell disease. It even stated that it will close the development of this drug and shift its focus on AIR001 development activities. The update of the EPIC failure resulted in a sharp decline of 90% in share price.
The stock has recovered a bit after this news broke out that it is currently assessing numerous options including a reverse merger contract with a firm. This, and other promising new advancements, resulted from the hiring of an investment bank.