STSA - Satsuma stock surges 11% after SVB upgrades on potential positive data for migraine therapy STS-101

Satsuma Pharmaceuticals ( NASDAQ: STSA ) stock rose ~11% on Oct. 10 after SVB Securities upgraded the company's shares to Outperform from Market Perform and raised the price target to $15 from $5.

South San Francisco, Calif.-based company is developing STS101, a nasal powder formulation of anti-migraine drug dihydroergotamine mesylate (DHE) administered via Satsuma's proprietary nasal delivery device. In September, the company reported that STS101 showed a favorable safety and tolerability profile in an ongoing phase 3 trial , dubbed ASCEND, in patients with migraine.

A phase 3 study called Summit of STS-101 has a good chance to report positive data, Bloomberg reported citing SVB analyst Marc Goodman.

The analyst added that while the company's phase 3 trial, dubbed EMERGE , had failed in 2020, Satsuma is using a second-generation device for the Summit study.

Goodman noted that Satsuma has made key changes to the delivery device itself which allows for more consistent drug administration.

The SA Quant Rating on the stock is Hold , which takes into account factors such as Momentum, Profitability, and Valuation among others. STSA has factor grade of A for Momentum and D for Profitability. The average Wall Street Analysts' Rating differs with a Buy rating, wherein 3 out of 5 analysts tag the stock as Strong Buy.

YTD, Satsuma shares have gained ~29% , meanwhile the broader market indicator, SP500 has shed ~24% . See chart here .

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