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Benzinga
Benzinga
Business
Vandana Singh

Mizuho Remains Bullish On This Small-Cap Stock's Migraine Candidate, But Why Did It Cut Price Target

  • Mizuho Securities says that the Satsuma Pharmaceuticals Inc (NASDAQ:STSA) story is essentially unchanged. It remains bullish on STS101's potential as an effective, safe, and reliable intranasal dihydroergotamine (DHE) for migraine. 
  • It has adjusted its model to align STS101 pricing to Impel Pharmaceuticals Inc's (NASDAQ:IMPL) migraine treatment, Trudhesa. 
  • According to Drugs.com, Trudhesa costs around $900 per pack of four doses.
  • The model update lowers the price target to $13 from $15, with a Buy rating.
  • The management reaffirmed the timing of topline data for the pivotal SUMMIT trial in 4Q22, followed by a potential STS101 US marketing application filing in 1Q23. 
  • Related: Satsuma's STS101 Shows Favorable Pharmacokinetic Profile, Tolerability In Early-Stage Study.
  • The long-term safety ASCEND trial is also expected to read out in 2H22. 
  • Satsuma ended 1Q22 with a cash balance of $80.6 million, sufficient to fund operations into 2H23 and through projected completion of the STS101 Phase 3 program and potential marketing application filing. 
  • Mizuho expects R&D expenses to trend upward in 1H22 and then taper down later as SUMMIT and ASCEND wrap up. It has also adjusted SG&A expenses, which assume pre-launch commercial activities to potentially commence later in 2023.
  • Price Action: STSA shares are up 2.60% at $2.70 during the market session on the last check Friday.
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