This Stock Earns Price Bump, Bullish Pitch On Recent Positive Migraine Drug Data

Satsuma Pharmaceuticals Inc STSA announced positive results from the ASCEND open-label, long-term safety trial for STS101 intranasal dry powder dihydroergotamine (DHE) drug device for migraine.
The data show no concerning nasal safety signals, satisfy safety exposure requirements, and provide an encouraging efficacy, with the 2nd-Gen (Mk2) device yielding improved efficacy.
HC Wainwright reiterated its Buy rating and raised the price target from $15 to $18 on incremental DCF probability of success improvement to 60% from 50% following these ASCEND Mk2 results.
The company concluded enrollment in SUMMIT Phase 3 Efficacy Trial, with more than 1,400 subjects and data expected by the end of 2022.
The data bodes well for SUMMIT considering EMERGE saw a 19.3 vs. 14.8% 2-hour pain freedom and 40.5% vs. 33.7% 2-hour freedom from most bothersome symptoms.
"So, one may presume that SUMMIT should see a bigger efficacy jump vs. EMERGE than in ASCEND with Mk2 vs. Mk1. We expect positive SUMMIT data by November," HC Wainwright says.
The analyst expects marketing application filing in Q1 2023, with a launch in 1H 2024 and peak U.S. sales of around $400 million.
Price Action: STSA shares are up 4.87% at $7.85 on the last check Wednesday.