Satsuma Pharmaceuticals downgraded to Neutral from Buy at H.C. Wainwright

H.C. Wainwright downgraded Satsuma Pharmaceuticals to Neutral from Buy without a price target after the company agreed to be acquired by Shin Nippon Biomedical Laboratories. The analyst believes STS101 is likely best-in-class and that an ultimate commercial partnership should yield contingent value rights value for Satsuma. However, citing the likely limited visibility from here on out, and uncertain terms of an eventual SNBL STS101 commercial deal, the firm thinks it is prudent to downgrade the shares.