What Mast Therapeutics Inc (NYSEMKT:MSTX) And Savara Inc. Merger Means?

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Mast Therapeutics Inc

Mast Therapeutics Inc (NYSEMKT:MSTX) and Savara Inc. have decided to merge for development of new therapies and treatments. The companies made the announcement recently. The joint entity will run with the brand name of Savara Inc. and the new company will be based in Texas.

But, what will this merger bring; especially for Savara Inc.?

At present, Mast Therapeutics has three primary and important drugs in the advanced stages of clinical research. These include AeroVanc, Molgradex and AIR001. Considering the product line of Savara Inc. that it presently has, all these drugs will be a bonus for the company.

AeroVanc and Molgradex enjoy the orphan drug status, while AIR001 is an important product from Mast Therapeutic because of its application in heart-failure patients through Adaptive Aerosol Delivery nebulizer of Royal Philips.

So, this is definitely a good deal for Savara Inc.

Savara Inc. shareholders to enjoy the last say in decisions

The new combined company will run with Savara Inc. brand name and the present management team of this company shall continue to serve the new entity as well. Among the seven members board, five executives will come from Savara Inc., which indicates clearly that the last say would be that of be Savara Inc. only.  Savara’s stockholders will be the 76% owners of the new company.

The merger, which is expected to be closed by the second half of this year, will also have a new ticker symbol of the merged company.

Goals for the new company

In the near term, the combined company will have the primary target of Phase 3 study in Q3 2017 of AeroVanc inception. Savara Inc. will have the responsibility of getting green signal from U.S. FDA regarding the clinical study of Molgradex, when 2017 comes to close.

Someone rightly said that with great power comes great responsibility. Molgradex clinical study will hold a lot of importance for the combined company and with Savara Inc. being the leader of this merger, there will be a greater liability of seeking FDA nod for this one.

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