Sienna Biopharmaceuticals SNNA Stock News

Sienna Biopharmaceuticals Inc (NASDAQ: SNNA) is running for the top in the market this morning, up well over 20% early on. The gains come after the company announced that it has filed a 510(k) with the FDA. Here’s what’s happening:

SNNA Stock Is Climbing After 510(k) Submission

Sienna Biopharmaceuticals is having an incredibly strong start to the week as we head into mid-day on Monday. The comapny announced this morning that it has filed a Premarket Notification 510(k) to the FDA.

The submission surrounded SNA-001. SNA-001 is a topical pre-treatment to standard laser devices to remove unwanted light hair. In the release, SNNA said that it has received acknowledgement from the FDA, stating that the submission has been accepted.

The goal of the submission is to bring SNA-001, in conjunction with a 810 nm Diod laser to market. The treatment will be used to remove unwanted white, gray, blonde, light red and light brown hair in men and women.

There Are A Few Reasons To Be Excited Here

Ultimately, the news that SNNA has submitted the 510(k) to the FDA couldn’t have come at a better time. There are a few very good reasons that investors are so excited here:

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Reason #1: The Market Opportunity Is Incredible

Laser hair removal is an overwhelmingly popular proceedure. In fact, in the United States alone, more than 12 million laser hair proceedures are performed each year.

Due to the popularity of the procedure, the market opportunity is hard to ignore. At the moment, experts suggest that the laser hair removal market will grow to be worth nearly $4 billion annually by the year 2026.

Should the FDA approve the use of the company’s SNA-001 product, it could soon tap into this vast market. Now, it would be foolish of me to lie to you and say that the company has the potential to take the entire, or even half of the, market. The good news is that it doesn’t need to.

At the moment, SNNA trades with a market cap of around $10 million. Should the company tap into just one percent of the overall laser hair removal market, it could represent an opportunity worth nearly $40 million or four times the company’s valuation annually. That’s nothing to underestimated!

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Reason #2: The Timing Is Perfect And Could Sweeten The Pot

As anyone followin Sienna Biopharmaceuticals knows, the company is currently in the midst of voluntary Chapter 11 bankruptcy proceedings. Of course, part of the plan here is to look for strategic partnership, merger, or acquisition opportunities.

With a company that is hurting financially, potential suitors know that they can offer a strong premium to market value and get a decent discount in the process when it comes to asset values.

The fact that SNNA submitted the 510(k) to the FDA and that the FDA has received an accepted the  application is big news. Importantly, it brings the company close to an FDA approval, and now, any potential suitor will need to factor that into any offer.

So, while bankruptcy is a scary concept, the truth of the matter is that today’s news, in conjunction with the strategic exploration that is taking place through the bankruptcy, could lead to a strong return in value for investors!

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Reason #3: Putting A Glimmer On The Edge Of A Dark Cloud

SNNA investors are essentially on the edges of their seats. They have been battered as of late and have been hoping for the best in bankruptcy.

Today’s news ultimately puts a light at the end of the tunnel or a glimmer on the edge of a dark cloud. Knowing that the submission has been accepted by the FDA gives a couple of options. The company is not required to be acquired to generate value with this in mind.

Think about it, while the submission increases the chances of an acquisition, a financial restructuring could be just as fruitful. Getting the company to the point where it could potentially commercialize SNA-001 would greatly improve the value fo the company. Once commercialized, SNNA-001 could provide the financial stability that investors wished the company had.

All in all, if an acquisition happens, great. If one doesn’t happen, there’s still good news to look forward to ahead.

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1 COMMENT

  1. Music to my ears. Last week I decided to stop just reading and learning about investing, and finally took action. Invested in two stocks and for some reason, Sienna Biopharmaceuticals was among my choosing. The only question now, should I buy more shares?

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