Savara Inc (NASDAQ:SVRA) has announced that it has successfully closed its much awaited merger with Mast Therapeutics Inc (NYSE:MSTX). As a result of the transaction, the stockholders of SVRA have become the majority owners of MSTX and Mast has merged with the company. As per the merger agreement, Savara is the surviving entity of the transaction, while the domiciled state would be Austin, Texas. It should be noted here that the new entity would own a total of three inhaled product candidates, with each one in the advanced stages of development.
The two companies have also decided that Savara would retain its management, while only two independent directors from the MSTX board would join the new company. The number of board members has been increased to seven. The CEO of the company, Rob Neville, claimed that this was an important milestone for them and would serve as a testament of the management’s commitment, as well as the support of Savara’s shareholders.
Mr. Neville further noted that their team was committed to helping patients who suffer from rare and debilitating lung diseases and would be pursuing dynamic opportunities, in this regard, as soon as they emerge. The merger comes at a time when SVRA is preparing for a phase-3 trial of AeroVanc, a product it started to develop in 2010. Moreover, the company also has Molgradex in a phase-2/3 study. Molgradex was acquired in July 2016, when SVRA acquired Serendex Pharmaceuticals. The merger with Mast Therapeutics would add Aironite to the company’s product pipeline.
In order to close the merger, Mast Therapeutics recently exercised a 1 for 70 reverse stock split, of its common stock. However, the emerging company has a total of 15 million shares of common stock, issued and outstanding, with SVRA shareholders owning 77% of the company, while MSTX shareholders own 23%.
Savara Inc (NASDAQ:SVRA) recorded a decline of 17.48% in its share value, during the May 3 trading session, to close at $6.47 per share.