STSA - Satsuma: Launch Of 2nd Pivotal Trial For Migraine Med Ought To Cheer Share Price

• Satsuma's lead and only candidate STS101 targeting treatment of acute migraines failed a pivotal trial in September last year.
• After a long silence, management has announced that it will launch a 2nd pivotal trial sometime in 2022, and has taken learnings from the 1st trial is confident of success.
• STS101 is a nasal spray formulation of DHE, which is efficacious but difficult to administer. Approved DHE nasal spray Migranal makes ~$55m per annum, but faces generic competition.
• If Satsuma succeeds STS101, could compare favourably to Migranal and current standards of care - CGRP inhibitors - on efficacy, but trial results will have to be strong.
• Satsuma's share price collapsed from $24 to $4 after its first pivotal trial failed and currently trades at $6.5. Momentum may take it past $10 in the coming months. Long-term, an approval could see shares challenge previous highs.

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