SVB Securities downgraded Satsuma Pharmaceuticals (NASDAQ:STSA) to “market perform” from “outperform” and slashed its price target to $1 from $15 after the company reported negative data for the Phase 3 SUMMIT trial of STS101 (DHE nasal powder) in acute migraine.
Shares of Satsuma dropped $3.37 to 68 cents in heavy trading on Nov 14.
Analyst Marc Goodman writes that the co-primary endpoints of freedom from pain and most bothersome symptom at two hours were not met. While several secondary endpoints of the trial were statistically significant, the company does not plan to invest in commercialization efforts for STS101.
Mr. Goodman said the company has no other products in the pipeline and about $60-million in cash.
