Shares of Satsuma Pharmaceuticals (NASDAQ: STSA) skyrocketed by more than 100% in pre-market trading on Monday after the development-stage biopharmaceutical company was acquired by Shin Nippon Biomedical Laboratories for $0.91 in cash per share plus one non-tradeable contingent value right (CVR) of up to $5.77 per share.
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This CVR depends on “pursuant to the future sale, license, or any other monetization events related to STS101 (dihydroergotamine (DHE) nasal powder), a novel investigational therapeutic product candidate for the acute treatment of migraine.”
In March this year, Satsuma submitted a New Drug Application (NDA) to the U.S. Food and Drug Administration (FDA) for STS101. STS101 is a nasal powder formulation and delivery device technologies developed by SNBL and exclusively licensed by Satsuma.
STSA stock has tanked by more than 80% in the past year.