Phase III migraine flop sends a small-cap biotech player into a deadly tailspin
A small-cap player looking to cash in quickly on a reformulated drug just got flattened this morning as their one-trick pony got hit by a late-stage catastrophe.
Bay Area-based Satsuma Pharmaceuticals $STSA made it to the market a year ago with an upsized take of $83 million based on their hopes of filing for a new drug approval right about now with Phase III data.
It didn’t work out that way.
Spun out of Shin Nippon Biomedical Laboratories, the company relied on a reformulated nasal version of an old generic called dihydroergotamine to come up with a new migraine drug, distinct from the CGRP favorites now battle for market share. They were using delivery tech out of Shin Nippon designed to provide fast delivery and absorption, betting that would translate into a quick response for migraine sufferers.
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