Why Mast Therapeutics Inc (NYSEMKT:MSTX)’s Merger With Savara Inc. Is A Strategic Move?

Mast Therapeutics Inc

Mast Therapeutics Inc (NYSEMKT:MSTX)’s merger with Savara Inc. is seen as a strategically correct move. The company’s pact with Savara will assist in three main conditions- heart failure with preserved ejection fraction, pulmonary alveolar proteinosis and community-acquired infection methicillin-resistant Staphylococcus aureus (MRSA) in cystic fibrosis.

Strategic benefits for Mast

The Canaccord Genuity Inc. analyst, John Newman believes that this merger can be seen as an action that will fetch strategic benefits for Mast. He explains this by saying that these three important clinical inhaled assets are vital for Mast from the research and development point of view. Also, this is good from the perspective of clinical development.

The shareholders of Mast Therapeutics Inc are in a better position and condition, given that the alliance with Savara Inc. will fetch for Mast, a stronger synergy.

A combination of three main inhaled assets

John Newman goes on to explain that the deal between Mast and Savara will ensure that the company has a good combo of its inhaled assets, which include AIR001, AeroVanc, and Molgradex. This is seen as a vital step for the company since AeroVanc, and Molgradex are the inhaled treatments/ therapies for lung diseases. What is more interesting here is the fact that the U.S. Food and Drug Administration has already shed light on approving inhaled therapies.

With Mast planning to put AIR001 for FDA approval soon, it is most likely that the authority, after careful considerations, will go forward with this inhaled formulation. There is no reason not to, because AIR001 is a plausible and one of the promising therapies for an acute, fatal and serious disease.

Canaccord Genuity Inc. is the financial advisor of Savara Inc. in this deal. After the deal is finalized, there is an expectation of Savara becoming a publicly traded company on the New York Stock Exchange Markets. There is a possibility of reverse split, about which, we might know soon.


Please enter your comment!
Please enter your name here