Satsuma Pharmaceuticals Inc. lost about three-quarters of its value in premarket trading after the clinical-stage biopharmaceutical company released results from its clinical trial for its experimental migraine treatment.
The results showed that the investigational treatment, called STS101, didn’t meet the endpoints of the trial and was not statistically superior to the placebo treatment two hours after administration in terms of reducing pain or relieving the patient of their most bothersome symptom.
The company noted that after two hours from administration, the potential treatment did demonstrate statistically significant effects on the endpoints.
“We are surprised and disappointed that STS101 did not demonstrate statistically significant superiority over placebo at two-hours post treatment on the SUMMIT study co-primary endpoints,” Chief Executive John Kollins said.
However, results from other trials will help support the company’s new drug application and marketing approval for the experimental treatment, he said.
Satsuma said it does not plan to invest in commercializing STS101 and will actively explore alternatives while reducing costs.
Shares of Satsuma fell more than 77% to 90 cents a share in the premarket session.