Shin Nippon Biomedical to Take Over Satsuma Pharmaceuticals in $0.91 per Share Deal
April 18, 2023
Trending News ☀️
Satsuma Pharmaceuticals ($NASDAQ:STSA) is a global pharmaceutical company with a strong focus on research and development of innovative treatments for serious medical conditions. In an announcement made today, Shin Nippon Biomedical has agreed to purchase Satsuma Pharmaceuticals in a deal valued at $0.91 per share. This acquisition gives Shin Nippon Biomedical access to a larger customer base, as well as access to Satsuma’s research and development facilities located in various countries around the world.
Shin Nippon Biomedical also gains access to Satsuma’s diverse drug portfolio, which includes treatments for conditions such as cancer and rare diseases. Until then, both companies will continue to operate independently.
Market Price
On Monday, Satsuma Pharmaceuticals experienced a 64.9% surge in its stock price, opening at $1.4 and closing at $1.1, from its prior closing price of $0.7. This is a significant move for both companies, and it remains to be seen what the implications of this takeover will be. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Satsuma Pharmaceuticals. More…
| Total Revenues | Net Income | Net Margin |
| 0 | -70.06 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Satsuma Pharmaceuticals. More…
| Operations | Investing | Financing |
| -51.52 | 43.37 | 8.74 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Satsuma Pharmaceuticals. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 54.94 | 8.12 | 2.06 |
Key Ratios Snapshot
Some of the financial key ratios for Satsuma Pharmaceuticals are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 0.0% | – | – |
| FCF Margin | ROE | ROA |
| – | -76.0% | -79.7% |
Analysis
GoodWhale has conducted an analysis of Satsuma Pharmaceuticals‘ financials. According to our Star Chart, Satsuma Pharmaceuticals has an intermediate health score of 4/10 with regard to its cashflows and debt, indicating that it is likely to be able to sustain future operations in times of crisis. Looking further into the details, we can see that Satsuma Pharmaceuticals is strong in asset, and weak in dividend, growth, and profitability. We classify Satsuma Pharmaceuticals as an ‘elephant’, a type of company which is rich in assets after deducting off liabilities. Investors who are looking for stable and reliable companies would be interested in investing in Satsuma Pharmaceuticals. Furthermore, those who are looking for companies with strong asset base and with potential for growth would also be attracted to the company’s profile. Therefore, we believe that Satsuma Pharmaceuticals is an attractive option for long term investors. More…
Peers
The competition between Satsuma Pharmaceuticals Inc and its competitors is fierce. Each company is striving to develop the best products and treatments to help patients fight disease and improve their quality of life. Satsuma is committed to providing the most innovative and effective therapies possible, and will continue to work hard to stay ahead of the competition.
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Summary
Satsuma Pharmaceuticals has been in focus recently as the company agreed to be acquired by Shin Nippon Biomedical for $0.91 in cash per share. This acquisition has created a lot of buzz in the investing world and the stock price has seen an impressive move up. Investors need to be aware that this is purely a financial transaction and apart from the short-term gains, there may not be much future upside for the stock. Investors should look at the company’s fundamentals, financials, and competitive landscape before making a decision.
Additionally, they should keep an eye on developments regarding the acquisition and how it will ultimately impact Satsuma Pharmaceuticals.
