Sage Therapeutics’ Stock Plummets 49% After FDA Approval News

Sage Therapeutics Inc.’s stock (SAGE) experienced a significant 49% decline in premarket trade following FDA approval news.

Key Highlights:

The FDA approved the oral treatment zuranolone for postpartum depression, co-developed with Biogen Inc., becoming the first-and-only oral option for the condition.

Disappointment arose as the treatment was not approved for major depressive disorder (MDD), a much broader condition.

Sage Therapeutics is currently reviewing FDA feedback and evaluating its next steps, including resource allocation, pipeline prioritization, and a potential workforce reorganization to extend cash runway.

CEO Barry Greene stated: “While we believe we are well capitalized, given the impact of the CRL (complete response letter) for zuranolone in MDD on our plans, we are currently evaluating resource allocation, including pipeline prioritization and a workforce reorganization with a goal of extending our cash runway. With a right-sized organization and portfolio, we believe we have an opportunity to emerge as an even stronger company. We plan to provide greater detail and next steps before the end of the third quarter.”

Additionally, Biogen’s stock (BIIB) experienced a 1.9% pre market decline in response to the news.

About Sage Therapeutics

 Sage Therapeutics is a biopharmaceutical company fearlessly leading the way to create a world with better brain health. Our mission is to pioneer solutions to deliver life-changing brain health medicines, so every person can thrive. For more information, please visit http://www.sagerx.com

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Sage Therapeutics’ Stock Plummets 49% After FDA Approval News

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