Thu, Apr. 14, 7:35 AM
- Synta Pharmaceuticals (NASDAQ:SNTA) and privately held Madrigal Pharmaceuticals agree to merge in an all-stock transaction. Under the terms of the agreement, Synta will acquire all of the outstanding shares of Madrigal in exchange for ~253.9M newly issued shares of Synta common stock. Madrigal shareholders will own 64% of the combined company while Synta shareholders will own 36%. The deal should close by the end of Q3. The post-deal firm will do business as Madrigal Pharmaceuticals.
- Synta board member and former Incyte CEO Paul Friedman, M.D., will serve as Chairman and CEO. Madrigal Founder and CEO Rebecca Taub, M.D. will serve as Chief Medical Officer and EVP, R&D. Synta SVP and CFO Marc Schneebaum will continue as CFO.
- The marriage will create a company focused on cardiovascular-metabolic diseases and non-alcoholic steatohepatitis (NASH). Madrigal's lead product candidate is Phase 2-stage MGL-3196, a once-daily, oral, liver-directed selective thyroid hormone receptor-beta agonist for the treatment of NASH and heterozygous and homozygous familial hypercholesterolemia.
- The companies will host a conference call this morning at 8:30 am ET to discuss the merger.
- Update: On July 22, the companies announced the completion of the merger.