Will Mast Therapeutics Inc (NYSEMKT:MSTX)’s merger strategy work out?


When Mast Therapeutics Inc (NYSEMKT:MSTX)’s merger with another firm, Savara Inc. was announced, many rose a brow thinking whether this would be good or not; especially seeing that there may possibly be a reverse split and the company’s name change. However, with Savara Inc.’s financial advisor of this deal, Canaccord Genuity Inc. analyst, John Newman calling it a “strategic move,” there is a hope for a brighter tomorrow.

The pact that includes three primary conditions

The merger is revolving around three things or treatments, as one may say. These include pulmonary alveolar proteinosis, heart failure with preserved ejection fraction and community-acquired infection methicillin-resistant Staphylococcus aureus (MRSA) in cystic fibrosis. These are the clinically inhaled assets or therapies from Mast that will now be an addition to Savara’s portfolio.

The deal, according to Mr. John Newman, ensures that there is a combined package kind of thing for these assets, i.e., AIR001, AeroVanc, and Molgradex. AeroVanc and Molgradex are effective for lung diseases.

FDA has recently also hoped to bring about more approved inhaled therapies in the market and AIR001 will soon be put before the authority for approval. This is a treatment for one of the serious diseases and also a promising one, in that matter.

The merger is vital from strategic perspective

Mr. John Newman says that this merger is strategically important because it will assist Mast in further research and development. If we look at it from the clinical point of view, this merger will bring about further development, as opined by Mr. John Newman.

He also thinks that Mast, at present, has its sunny side up, with better market condition and positioning. This merger with Savara, is therefore, seen as something that will offer a better synergy to Mast Therapeutics Inc.

So, the investors are hoping that this merger will prove to be good and the company will be in much better position in 2017.

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