San Francisco-based Vista Partners has updated coverage on Mast Therapeutics Inc. (NYSE: MSTX), a San Diego-based biopharmaceutical company, and maintains its 12-month price target of $2.25.
The announcement comes a day after Mast announced it had completed its acquisition of Aires Pharmaceuticals Inc.
Ross Silver, principal analyst at Vista Partners, said there has been considerable partnership and merger and aqcuisition activity for companies working on sickle cell disease.
In 2012, he noted, Selexys Pharmaceuticals Corp. entered into an agreement with Novartis Pharmaceuticals (NYSE: NVS). The agreement, he added, could reach up to $665 million. In October 2011, Pfizer (NYSE: PFE) signed a licensing deal with GlycoMimetics (Nasdaq: GLYC) that Silver said could be worth up to $340 million, including an upfront payment as well as development, regulatory, and commercial milestones, plus royalties.
"GlycoMimetics, the first biotech IPO of 2014, currently trades at a market cap of around $225M," Silver wrote in a release, "whereas MSTX is around $85M. GlycoMimetics has only completed a Phase 2 trial whereas MSTX is actively enrolling patients in a Phase 3 trial."