Mast Therapeutics Inc(NYSEMKT:MSTX) Makes Good News With Aires Pharma


Dallas, Texas 03/10/2014 (FINANCIALSTRENDS) – Mast Therapeutics Inc(NYSEMKT:MSTX) has reported the definitive agreement it has made with Aires Pharmaceuticals to acquire it. The deal is expected to prove beneficial to the former, as the lead product for Aires – AIR001, holds US FDA approval as well as European Medicines Agency approval on several of the orphan drug status it includes.

Mast Therapeutics Inc(NYSEMKT:MSTX) will expect to see AIR001 among other products owned or licensed by Aires as  pipeline, which will prove to be a phase 2 asset for the company. It currently has finished exposure to over 120 subjects and is expected to prove to be a great complement for the MST-188 sector. The total consideration for the company is nearly 6% of the stock it holds on Mast equity. The company is expected to move upwards on the value chain as it brings in more nitrite based, nebulous formulation for the company.

Mast Therapeutics Inc(NYSEMKT:MSTX) will use AIR001, which is a solution which is delivered through the inhalation process. The nebulized formulation for nitrite, as well as the hypoxic conditions for the same is to be considered. Nitrite meditate nitric oxide formation will also hold several effects, which are expected to be beneficial for the product.

For MSTX, the highlight is the acquisition and the favourable economics. It is expected to complete several venture fiancés, besides a series of $20 million Series B rounds. The company has been paying  much lesser than the expectations and estimations for AIR001 development costs. The product when in development, in the first year saw over $2 million spend.

The company hopes that as the product development evolves over the next fiscal, the $3 million net cash will help it to stage a merger. Therefore, for the first year of development it is hoped AIR001 will require additional investments.

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