Satsuma Pharmaceuticals, a US-based migraine treatment developer spun off from contract researcher Shin Nippon Biomedical Laboratories, has filed to raise up to $86.3m in an initial public offering.
Founded in 2016, Satsuma is developing an acute migraine treatment, STS101, that will administer a dry-powder formulation of a chemical compound known as dihydroergotamine mesylate through a nasal spray.
The IPO proceeds will fund phase 3 clinical trials for STS101, the company having launched a phase 3 Emerge trial for the drug candidate last month.
Satsuma has raised $74m in funding, $12m of which came in a 2017 series A round co-led by investment management firm RA Capital Management and TPG Biotech, a life sciences investment vehicle for private equity group TPG.
Investment manager Wellington Management Company led Satsuma’s $62m series B round in April 2019, which included $2.8m from Shin Nippon, and SBI Investment, which forms part of financial services firm SBI.
The series B was filled out by RA Capital Management, TPG Biotech, Osage University Partners, Caxton Alternative Management vehicle Cam Capital, Surveyor Capital, Eventide Asset Management, Cormorant Asset Management and Lumira Ventures.
Shin Nippon owns a 12% stake in the company, whose other notable investors are RA Capital (30.2%), TPG Biotech (16.1%), Wellington Management (10%), Osage University Partners (6%), Cam Capital (5.5%), Comorant, Eventide and Citadel Advisors (5% each).
Credit Suisse Securities (USA), SVB Leerink and Evercore Group are the underwriters for the offering, which is slated to take place on the Nasdaq Global Market.
