Oncology drug maker Synta Pharmaceuticals Corp. (NASDAQ: SNTA) had a run of bad luck in October 2015, when it terminated its GALAXY-2 trial of its lead candidate, ganestespib, and discontinued a substantial portion of its research and development activities related to the compound.
Happy news, then, when Synta announced its merger with privately-held Madrigal Pharmaceuticals, whose lead compound, MGL-3196, is a Phase 2-ready, once-daily oral treatment for non-alcoholic steatohepatitis (NASH) and heterozygous and homozygous familial hypercholesterolemia.
In the all-stock transaction, valued at $60.9 million, Synta will acquire all outstanding shares of Madrigal in exchange for approximately 253.9 million newly issued shares of Synta common stock. Synta’s prior-day closing price was $0.24. Upon closing, Synta shareholders will own 36% and Madrigal shareholders will own 64% of the combined company, which will be named Madrigal Pharmaceuticals.
