Replies to post #244520 on Biotech Values

[ottoman]

I just can't bring myself to ever again buy a biotech stock for a bounce play. Even if it's down 95%, I can somehow make it fall another 95% lol. I have that ability.

Doesn't matter if they have other drugs "in the pipeline". I tend to clog that pipeline.

[DewDiligence]

Shin Nippon Biomedical Laboratories acquires STSA for $0.91/cash +CVR:

https://www.globenewswire.com/news-release/2023/04/16/2647523/0/en/SNBL-to-Acquire-Satsuma-Pharmaceuticals.html

The CVR relates to potential monetization of STS101, an intranasal acute-migraine treatment that failed two phase-3 trials (#msg-170444970, #msg-158207498). Since those failures, STSA has essentially been a shell company trading at a negative enterprise value.

Excluding the CVR, the buyout price of $0.91/sh is a 39% premium to Friday’s closing price; however, the buyout price is down 94% from STSA’s 2019 IPO price of $15.00 (#msg-151112084).