Mast Therapeutics Inc (NYSEMKT:MSTX) Down In Spite Of Positive News


Dallas, Texas 04/28/2014 (FINANCIALSTRENDS) – On 14th April Mast Therapeutics, Inc. (NYSE MKT: MSTX) disclosed that data from its collaborative clinical testing on its target drug MST-188 conducted in the labs of Loyola University Medical Center indicated that the ‘mean erythrocyte sedimentation rate’ was reduced to the tune of 50 percent in individuals suffering from sickle cell disease and were treated by the drug candidate. The drug maker had reported the positive data at the 8th Annual Sickle Cell Disease Research & Educational Symposium which was held in Miami this year.

At the time of the announcement, Mast Therapeutics, Inc. (NYSE MKT: MSTX) Senior Vice President for product development has bee n quoted to have said that, “Patients suffering vaso-occlusive crisis experience an inflammatory state where cells, proteins, and other molecules increasingly adhere to each other and blood vessel walls, resulting in physical ‘log jams’ that obstruct blood flow, cause severe pain, and accelerate organ damage and failure.  Reducing RBC aggregation may be integral to restoring normal blood flow to tissue.  The data from this study are consistent with observations in prior studies that MST-188 decreases blood viscosity.”

In spite of the positive data, Mast Therapeutics, Inc. (NYSE MKT: MSTX) is still struggling to overcome the Fourth Quarter 2013 Operating Results it reported on 26th March.  The net loss for the 4Q13, came in at $5.7 million which translates into 6 cents per share loss as against the $4 million or 8 cents loss it had reported in the same period in 2012. R&D expenses for the 4Q13 came in at $3.5 million due to $1.2 million increase in the fees the firm had to fork out to conduct clinical trials for its target drug MST-188 designed to treat sickle cell disease. Year to date, net loss for the year came in at $21.5 million, which translates into a 28 cents per share loss per share YTD.