Why Is Satsuma Pharmaceuticals (STSA) Stock Up 144% Today?


  • Satsuma Pharmaceuticals (STSA) stock is climbing higher on acquisition news.
  • Shin Nippon Biomedical Laboratories wants to buy it for 91 cents per share.
  • It’s also offering a contingent value right worth up to $5.77 per share in the deal.
STSA Stock - Why Is Satsuma Pharmaceuticals (STSA) Stock Up 144% Today?

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Satsuma Pharmaceuticals (NASDAQ:STSA) stock is taking off on Monday after revealing an acquisition deal with Shin Nippon Biomedical Laboratories.

That deal has Shin Nippon Biomedical Laboratories agreeing to acquire STSA stock for 91 cents per share. That represents a 40% premium over the stock’s closing price on Friday. Also, the offer includes one non-tradeable contingent value right (CVR) for each share of STSA stock. That CVR has a value of up to $5.77 per share.

Investors in STSA stock will note that CVR activates if STS101 gets a “sale, license, or any other monetization event.” In March 2023, Satsuma Pharmaceuticals submitted a New Drug Application (NDA) to the Food and Drug Administration (FDA) for STS101.

Shin Nippon Biomedical Laboratories’ offer for Satsuma Pharmaceuticals makes sense. After all, STS101 uses nasal powder formulation and delivery device technologies developed by the company that were exclusively licensed to STSA.

STSA Stock Transaction Details

Satsuma Pharmaceuticals’s board of directors is advising shareholders of STSA stock to take part in a tender offer. This offer would see a subsidiary of Shin Nippon Biomedical Laboratories acquire a majority of STSA stock to complete the acquisition. If not enough shares are tendered, the offer may be extended.

Heavy trading follows STSA stock with today’s news. This has some 18 million shares on the move as of this writing. For comparison, the company’s daily average trading volume is closer to 150,000 shares.

STSA stock is up 144% as of Monday morning.

Investors looking for more of the latest stock market news are in luck!

We’ve got all of the hottest stock offerings traders need to know about on Monday! That includes the biggest pre-market stock movers this morning, as well as the latest on Luminar Technologies (NASDAQ:LAZR), and more. You can find all of that at the following links!

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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