Shares of Satsuma Pharmaceuticals (NASDAQ: STSA) skyrocketed by more than 100% in pre-market trading on Monday after the development-stage biopharmaceutical company was acquired by Shin Nippon Biomedical Laboratories for $0.91 in cash per share plus one non-tradeable contingent value right (CVR) of up to $5.77 per share.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
This CVR depends on “pursuant to the future sale, license, or any other monetization events related to STS101 (dihydroergotamine (DHE) nasal powder), a novel investigational therapeutic product candidate for the acute treatment of migraine.”
In March this year, Satsuma submitted a New Drug Application (NDA) to the U.S. Food and Drug Administration (FDA) for STS101. STS101 is a nasal powder formulation and delivery device technologies developed by SNBL and exclusively licensed by Satsuma.
STSA stock has tanked by more than 80% in the past year.
