STSA - Satsuma: Not All Over For Migraine Treatment Despite Trial Failure

• Satsuma shares have collapsed in value after the company's only drug candidate STS101 failed a late-stage trial in acute migraine treatment.
• The share price fell from $24, to $4, and most analysts have set a price target of $4.
• The EMERGE trial was not a complete blowout. STS101 - a DHE/nasal delivery combo showed statistical outperformance against placebo after a 3hr period and slight outperformance after 2hrs.
• It will take time, but I think the company can come back from this trial miss and has a few options on the table regarding winning approval.
• I think the share price may get worse before it gets better; however, I'd think about opening a position if it drops below $3, with a long-term price target of ~$10.

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