Mast Therapeutics (MSTX) Stock Trending Up On New Agreement Announcement

0

Mast Therapeutics Inc (NYSEMKT: MSTX)

Mast Therapeutics has had a rough time in the market as of late. After announcing recently that a Phase 3 clinical trial looking into a sickle cell treatment had failed, the stock took a dive. However, things seem to be changing direction today. Early this morning, the company released a press release with regard to a new agreement. As a result, we’re seeing big gains. Today, we’ll talk about the news, what we’re seeing from the stock, and what we can expect to see moving forward.

Trade smarter and make more money with Tradespoon!

MSTX Enters Collaboration Agreement

As mentioned above, Mast Therapeutics is having a strong day in the market today after announcing that it has entered into a new collaboration agreement. The agreement was signed with Philips Respironics, Inc. This is the sleep and respiratory care side of Royal Philips (NYSE: PHG).

The agreement announced today surrounds the supply of Philips’ I-neb Adaptive Aerso Delivery devices and related consumables for nebulized delivery of the company’s lead product. That product is AIR001. At the moment, AIR001 is in the midst of Phase 2 clinical studies. In a statement, Brian M. Culley, CEO at MSTX, had the following to offer:

As we announced last month, we are accelerating activities related to our AIR001 program with support for ongoing, investor-sponsored Phase 2 clinical studies of AIR001 being conducted at three separate prestigious research institutions… As part of this commitment, we are pleased to be working with Philips, a recognized global leader in the development of aerosol delivery devices and a leading provider of innovative solutions for the global respiratory market. Our agreement has been extended to include not only two of the Phase 2 studies of AIR001 currently underway, but also future clinical studies and will remain in place until 2020 or sooner, if replaced with a commercial supply agreement.”

How The Stock Is Reacting To The News

As investors, one of the first things that we learn is that the news moves the market, and this news was positive. As a result, we’re seeing strong pre-market gains from MSTX today. Currently (8:50), the stock is trading at $0.09 per share after a gain of $0.01 per share (13.75%) thus far today.

Don’t waste your time! Click here to find winning trades in minutes!

What We Can Expect To See Moving Forward

Moving forward, I have a relatively mixed opinion of what we can expect to see from Mast Therapeutics. First and foremost, I will say that we saw massive declines following the sickle cell failure, and, at such a low price, now may be the time to jump. Considering the collaboration agreement with PHG, there’s a strong argument for gains. On the other hand, due to the sickle cell failure, MSTX is still years away from profitability, and that can be concerning to many. Nonetheless, all in all, I’m expecting to see gains in the stock ahead.

[Image Courtesy of Wikimedia]


Previous articleGoPro (GPRO) Stock: Things Go From Bad To Worse
Next articleIntersect ENT (XENT) Stock Gaining On Solid Study Results
Hey, Im Joshua, the founder of CNA Finance. I enjoy following the trends in the market and finding the catalysts that are making the moves. If you want to get in contact with me, leave a comment below or email me at CNAFinanceHelp@gmail.com Please keep in mind that I am not an investment advisor and nor is CNA Finance. This is a news and information gathering outlet. We may work directly with some of the companies that we write about. If we have a business relationship with an issuer, we will mention that in the articles. We also have various affiliate relationships with advertisers and may be paid if you sign up for a service that you were referred to through our website.

LEAVE A REPLY

Please enter your comment!
Please enter your name here