Mast Therapeutics Inc (NYSEMKT: MSTX)
Mast Therapeutics is having an overwhelmingly strong day in the market today. When the opening bell rang, the stock was already in the midst of massive gains as the result of pre-market activity. While we have seen a slight dip from highs realized at the open, the stock is still trading well into the green. Below, we'll talk about what we're seeing from MSTX, why, and what we'll be watching for ahead.
What We're Seeing From MSTX
As mentioned above, Mast Therapeutics is off to an overwhelmingly strong day in today's trading session. When the market opened, the stock was trading well into the green. While we have seen a slight dip from highs, the stock is still trading on impressive gains. Currently (9:47), MSTX is trading at $0.17 per share after a gain of $0.07 per share (73.91%) thus far today.
Why The Stock Is Up Big
As is normally the case, our partners at Trade Ideas were the first to inform us of the gain on MSTX. As soon as they did, the CNA Finance team started digging to see exactly what was causing the movement. In this case, it took no time at all to uncover the story. The gains are ultimately the result of a merger that was announced early this morning.
Mast Therapeutics has announced that it will be merging with a privately-held emerging specialty pharmaceutical company known as Savara. Under the agreement, Savara will become the majority owners of MSTX. In a statement, Brian M. Culley, CEO at Mast, had the following to offer:
“Following an extensive review of strategic alternatives and a thorough process, the Mast Board of Directors chose to combine with Savara because we believe the proposed merger provides an attractive opportunity for our shareholders to obtain value appreciation from a diversified pipeline and positions the company for more rapid short and long-term growth via a triad of late-stage clinical assets with important forthcoming milestones... We are excited for the prospects of the combined company and believe that Savara's management team is well equipped to advance the pipeline toward regulatory approvals and commercialization in the US and EU.”
What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will keep a very close eye on MSTX. In particular, we'll be watching this merger closely. While an agreement has been signed, it is still subject to customary approval conditions. Nonetheless, we'll watch the story closely and bring the news to you as it breaks!
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