Sage Therapeutics Faces Legal Scrutiny for Stock Losses
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Legal Investigation of Sage Therapeutics
Glancy Prongay & Murray LLP, a leading national law firm specializing in shareholder rights, has initiated an investigation into Sage Therapeutics, Inc. (SAGE) on behalf of investors. This inquiry focuses on potential breaches of federal securities laws which may have led to substantial financial losses for those holding shares of the company.
Background on Recent FDA Approvals
On a notable date in 2023, Sage disclosed that the U.S. Food and Drug Administration (FDA) had approved the New Drug Application (NDA) for zuranolone, intended for treating postpartum depression (PPD). However, it was approved only for PPD and not for major depressive disorder (MDD) due to insufficient evidence of its effectiveness for the latter. Following this announcement, the company’s stock plummeted by over 53%, causing a significant impact on investors who suffered losses.
Further Challenges with Clinical Trials
Impact of Phase 2 Study on SAGE-718
Later in 2024, Sage revealed that a Phase 2 trial for SAGE-718, aimed at treating mild cognitive impairment related to Parkinson's Disease, failed to meet its primary effectiveness endpoint. As a result, Sage decided against further developing this treatment, leading to another stock drop of nearly 20%. The string of adverse news regarding Sage's clinical trials has raised concerns amongst investors about the future direction of the company's product offerings.
Results of Sage-324 Study
In a similar turn of events, the company also reported disappointing results from a Phase 2 trial of Sage-324, a treatment for essential tremor. The study did not show a significant response compared to placebo, prompting Sage to halt further development of the drug. This announcement further depressed the stock price, intensifying the emerging pattern of troubling news for the company.
Investor Rights and Options
If you have incurred financial losses due to the performance of Sage Therapeutics (SAGE) stocks, you may want to explore your legal rights. The counsel at Glancy Prongay & Murray LLP is actively encouraging affected investors to come forward to discuss potential recovery options. The firm is evaluating the possibility of filing claims under federal securities laws for investors who believe they have been misled or improperly informed about their investments.
About Glancy Prongay & Murray LLP
With a reputation for advocating on behalf of investors, Glancy Prongay & Murray LLP has been involved in numerous high-profile cases. This law firm is recognized for its successful track record in securities litigation, having secured impressive settlements for clients across various sectors. Their experienced team is dedicated to holding corporations accountable for their actions and ensuring investor protection.
Frequently Asked Questions
What is the current status of the investigation into Sage Therapeutics?
The investigation is ongoing, focusing on possible violations of federal securities laws following significant stock declines.
How did the FDA's decision affect Sage's stock?
The FDA’s limited approval for zuranolone contributed to a sharp decline in Sage's stock price, leading to significant investor losses.
What options do investors have if they suffered losses?
Investors may be eligible to pursue claims to recover their losses, and they are encouraged to contact Glancy Prongay & Murray LLP for assistance.
What were the results of recent clinical trials conducted by Sage?
Recent trials for SAGE-718 and Sage-324 showed disappointing results, leading to halted developments and further stock price declines.
Why is it important to report non-public information?
Whistleblower programs allow individuals with inside knowledge to report corporate misconduct, potentially leading to significant recoveries for investors.
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