Fort Washington’s Madrigal Pharmaceuticals Completes Merger with Synta, Creates Leader in Field
Fort Washington’s Madrigal Pharmaceuticals, a clinical-stage biopharmaceutical company focused on the development and commercialization of innovative therapeutic candidates for the treatment of cardiovascular, metabolic, and liver diseases, has announced the completion of its merger with Synta Pharmaceuticals.
The combined company has more than $40 million in cash to advance its research and development efforts, including the clinical development of MGL-3196, Madrigal’s lead product candidate. MGL-3196 MGL-3196 is used to treat non-alcoholic steatohepatitis (NASH) and heterozygous and homozygous familial hypercholesterolemia (FH) to lower LDL cholesterol, triglyceride levels, and Lp(a).
Prior to the closing of the merger, Synta completed a one-for-35 reverse stock split. As a result of the reverse stock split, every 35 shares of Synta common stock outstanding immediately prior to the merger were combined and reclassified into one share of Synta common stock. No fractional shares are being issued in connection with the reverse stock split.
Instead, cash, based on the closing price of Synta common stock on The NASDAQ Capital Market on July 21, 2016, will be issued in lieu of fractions of shares.
In connection with the merger, Synta changed its name to Madrigal Pharmaceuticals. The combined company commenced trading on a post-reverse stock split basis upon the opening of trading yesterday on the NASDAQ Global Market under the symbol “MDGL.”
“The completion of this merger with Synta, and the emergence of the new Madrigal as a public company, are significant milestones for the combined company and its shareholders,” said Paul Friedman, M.D., President and Chief Executive Officer of Madrigal.
“We believe MGL-3196 provides a compelling opportunity for value creation from our product development programs in NASH and genetic lipid disorders, including familial hypercholesterolemia. The company is well capitalized and plans to initiate Phase 2 clinical trials in these indications in the next few months.”
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