April 14, 2016 / 11:15 AM / 3 years ago

BRIEF-Synta Pharmaceuticals, Madrigal announce merger agreement

April 14 (Reuters) - Synta Pharmaceuticals Corp

* Synta pharmaceuticals corp says will acquire all shares of madrigal in exchange for approximately 253.9 million newly issued shares of synta common stock

* Paul a. Friedman, m.d. Named chairman and chief executive officer of combined company

* Madrigal will merge with a wholly-owned subsidiary of synta in an all-stock transaction

* Says combined company will be named madrigal pharmaceuticals, and paul a. Friedman will become chairman and ceo

* Synta pharmaceuticals corp says existing synta shareholders will own 36.0% of combined company and madrigal shareholders will own 64.0%

* Synta pharmaceuticals corp says an investor syndicate has committed to invest up to $9 million in madrigal prior to closing of merger

* On completion of deal, anticipated existing synta shareholders will own 36% of combined co, madrigal shareholders to own 64.0%

* Combined company intends to use these proceeds to fund development of mgl-3196 through phase 2 clinical studies in nash, hefh and hofh

* Synta pharmaceuticals corp says transaction has been approved by boards of directors of both companies and shareholders of madrigal

* Combined co to use $9 million, with co’s cash balance, to fund development of mgl-3196 through phase 2 clinical studies in nash, hefh, hofh Source text for Eikon: Further company coverage: (Bengaluru Newsroom: +1-646-223-8780)

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