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Over the years mergers has been associated with companies with the same interests and within the same line of production. While in that same page, a good example of a merger with such qualities is that of Mast Therapeutics Inc (NYSEMKT:MSTX) and Savara Inc. MAST has been one of the leading companies specializing in medicine and treatment of different conditions requiring various types or forms of therapies.

The need to diversify is what has driven the desire of this company to sign a merger deal with Savara Inc. a privately held merging pharmaceutical company which specialize in treatment of rare respiratory diseases.

Benefits of Signing Merger Agreement with Savara

With such the merger, business analysts expects that the stockholders and the stakeholders will be in a position to pool up huge revenue and income from a combined operations. This will also be an opportunity for the two companies to combine efforts and resources with the aim of promoting treatment of diseases with significant unmet medical needs.

According to the Brian Culley, the Chief Executive Officer of MAST Inc., the merger will create a pipeline in which deliver better products and services to the clients and ensuring attractive opportunity for shareholders to accrue value appreciation from the diversified pipeline.

Product Diversification and Improvements to be Accrued in the Long Run

The three product pipeline which has been the basis of the agreement include: AeroVanc, Molgradex and AIR001. A brief description on the latter is that AeroVanc is an inhaled dry-powder which is crucial for treating chronic methicillin-resistant infections. Molgradex is an inhaled nebulized GM-CSF which is important for treating pulmonary alveolar infection; it is also at its 2/3 phase of its development. On the other, AIR001 is basically an inhaled nebulized sodium nitrite solution which is commonly used for treating heart failure. This is also at phase 2 of its development.

The merger has been regarded as one of the most strategic alternatives which will propel MAST towards its growth and stability even with the bare fact that Savara will be the major stock holder in the merger. This brings us to a conclusion that such merger agreements have more benefits which outweigh the option of remaining as a single company. It is also for MAST Inc. to accrue competitive advantage over other pharmaceuticals in future.

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