Satsuma Pharmaceuticals, which was spun out of Shin Nippon Biomedical Laboratories (SNBL) over 6 years ago to develop an intranasal dry powder formulation of dihydroergotamine, has announced that it will now be acquired by SNBL. Satsuma recently said that it had submitted an NDA for STS101 DHE nasal powder for the treatment of migraine despite the failure of the Phase 3 SUMMIT trial to meet its primary endpoint but that Satsuma would not commercialize the product itself if approved.
According to the announcement, SNBL is offering $0.91 cash and one non-tradeable contingent value right (CVR) per share for all outstanding shares of Satsuma common stock. Payment of the CVR, which SNBL says has a value of up to $5.77, would be contingent on the sale or licensing of STS101.
Satsuma President and CEO John Kollins commented, “After carefully and comprehensively considering strategic options for Satsuma and STS101, the Satsuma board of directors believes that the acquisition of Satsuma by SNBL is the best strategic alternative for Satsuma and that this transaction will maximize value for our stockholders. We are pleased that SNBL shares our vision that STS101 has the potential to become an important and widely-prescribed acute treatment for migraine that can address the significant unmet needs of many people with migraine.”
SNBL Chairman and President Ryoichi Nagata said, “We are very pleased to announce that SNBL will be involved in the launch of this novel intranasal drug, which was developed based on SNBL’s novel intranasal drug delivery platform technology, pending potential FDA approval. We believe that STS101 will contribute to improving the quality of life of patients suffering from migraine. Consistent with SNBL’s corporate mission ‘to support drug discovery and the advancement of medical technology to relieve human suffering,’ we look forward to STS101 potentially becoming a treatment option for people with migraine as soon as possible.”
Read the Satsuma Pharmaceuticals press release.
