Synta and Madrigal Merge

Synta Pharmaceuticals and Madrigal Pharmaceuticals have entered into a merger agreement under which Madrigal will become part of a Synta subsidiary. The combined company will focus on the development of novel small-molecule drugs addressing cardiovascular-metabolic diseases and non-alcoholic steatohepatitis (NASH). Madrigal’s lead compound, MGL-3196, is a Phase 2-ready once-daily, oral, liver-directed selective thyroid hormone receptor-ß (THR-ß) agonist for the treatment of NASH and heterozygous and homozygous familial hypercholesterolemia (HeFH, HoFH).

The new company will be named Madrigal Pharmaceuticals, and Paul Friedman will become chairman and chief executive officer. The merger is expected to close by the end of the third quarter of 2016.

“Following an extensive review of strategic alternatives, Synta’s board of directors believes that a merger with Madrigal Pharmaceuticals offers shareholders the most compelling opportunity for enhancing long-term value,” said Keith Gollust, chairman, Synta. “Madrigal’s lead compound, MGL-3196, is a selective THR-ß agonist with a unique lipid lowering profile that has been validated through early clinical and preclinical studies. The combined company will be well capitalized with a lead program that offers both a potentially substantial commercial opportunity in NASH, and an efficient clinical development plan with commercial potential in genetic lipid disorders.”