Madrigal Pharma completes merger with Synta

US clinical-stage biopharma company Madrigal Pharmaceuticals has completed its all-stock merger with Synta Pharmaceuticals (Nasdaq: SNTA) valued at around $60 million, effective as of July 22, 2016, with Madrigal shareholders owning 64% of the combined company.

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 is a Phase II-ready once-daily, oral, liver-directed selective thyroid hormone receptor-ß (THR-ß) agonist for the treatment of non-alcoholic steatohepatitis (NASH) and heterozygous and homozygous familial hypercholesterolemia (HeFH, HoFH).

“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, president and chief executive 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 II clinical trials in these indications in the next few months,” Dr Friedman added.