Mast Therapeutics has announced that it will acquire Aires Pharmaceuticals, which is developing a sodium nitrite inhalation solution for the treatment of pulmonary arterial hypertension. The inhalation solution, known as AIR001 or “Aironite,” has received orphan drug status from both the FDA and the EMA.
Mast CEO Brian M. Culley commented, “The acquisition of Aires will enhance our pipeline with a phase 2 asset with more than 120 human subject exposures and which is a strategic complement to our lead program, MST-188. With total consideration of approximately 6% of Mast equity, it represents excellent value for our stockholders.”
Culley added, “Another highlight of this acquisition is its favorable economics. Aires had completed several venture financings, including a $20 million Series B round. We are paying significantly less than that to acquire the program and we currently estimate that our development costs for AIR001 for the first 12 months will be approximately $2 million. Our estimated costs for AIR001 will change as we refine our development strategy over the next few months, but Aires is expected to contribute approximately $3 million of net cash at the closing of the merger, so, as currently contemplated, our first year of development of AIR001 will not require additional capital investment by Mast.”
Read the Mast Therapeutics press release.
