Satsuma Pharma: Brokerages start with 'outperform' on migraine drug potential

Satsuma Pharmaceuticals

08/10/2019 13:27

**  Evercore ISI, Credit Suisse and SVB Leerink initiate
coverage of drug developer  STSA.O  with 'outperform' on
positive expectations from Satsuma's migraine drug    
    ** Credit Suisse says path of migraine drug STS101 to
regulatory approval is de-risked, adding the drug/device is
differentiated
    ** Brokerage expects next year's late-stage study data to be
positive, with STSA shares trading upward on clinical trial
updates/execution throughout next year
    ** SVB Leerink expects positive late-stage study data of
drug in H2 of 2020, and potential NDA filing by end of 2021 
    ** Nobody has ever been able to get dihydroergotamine (DHE)
formulation right before, Evercore ISI says, and drug/device
product (STS101) has unlocked true potential of DHE in treating
acute migraines
    ** Drug STS101 is an intranasal powder formulation of
dihydroergotamine to treat acute migraine    
    ** Stock has fallen 29% from IPO price of $15 in Sept.

 (Reporting by Trisha Roy in Bengaluru)
 ((trisha.roy@thomsonreuters.com))