Sage Therapeutics Terminates Biogen Collaboration on SAGE-324
Sage Therapeutics Ends Collaboration with Biogen
Sage Therapeutics, Inc. has made a significant announcement regarding its partnership with Biogen MA, Inc. and Biogen International GmbH. The company has decided to terminate its agreement concerning SAGE-324, a drug initially researched for treating essential tremor. This decision follows the recent disclosure of unfavorable outcomes from the Phase 2 KINETIC 2 Study involving SAGE-324.
Background of the Collaboration
The original agreement between Sage Therapeutics and Biogen was established on November 27, 2020. Under this Collaboration and License Agreement, both companies intended to work together to develop and market products containing Sage's SAGE-217 and SAGE-324 molecules. Importantly, Biogen was to manage development and commercialization responsibilities outside the United States, with specific exclusions in Asian territories concerning SAGE-217. The agreement allowed Biogen the flexibility to terminate for convenience, which they have now opted for concerning the SAGE-324 molecule class.
Impact of Termination
Although the collaboration around SAGE-324 will cease, the partnership remains intact for ZURZUVAE® (zuranolone). This product stands out as the first and only FDA-approved oral treatment specifically for women experiencing postpartum depression. Until the termination officially takes place, both companies will continue to share costs for ongoing activities related to the SAGE-324 products.
Future Directions for Sage Therapeutics
With the termination of the agreement, all licenses that had been conferred to Biogen pertaining to the SAGE-324 products are set to expire. Nevertheless, Sage Therapeutics will receive a perpetual license to any Biogen-related technology aimed at the SAGE-324 products as per their contractual terms.
Financial Adjustments and Recovery
The end of the partnership signals a notable shift in Sage Therapeutics' collaborations and strategic direction. Recently, the company has managed to regain full ownership of SAGE-324 as Biogen exited the partnership following disappointing study results. Nevertheless, products like ZURZUVAE remain on track for development. Consequently, financial analysts have adjusted their perspectives concerning Sage's future. For instance, Truist Securities revised its stock target from $18 down to $13, currently holding a Hold rating. Similarly, Piper Sandler amended its forecast, reducing the price target to $52 while maintaining an Overweight rating. Mizuho Securities and Stifel have followed suit, lowering their price targets to $12 and $15, respectively.
Current Financial Performance
Sage Therapeutics recently reported $7.4 million in collaboration revenue for the second quarter of 2024 from ZURZUVAE. Despite facing a net loss of $102.9 million in Q2, the company boasts a solid cash reserve of $647 million, which is projected to sustain operations until 2026. Looking ahead, Sage is poised to expand its sales force in the fourth quarter of 2024 to enhance ZURZUVAE’s sales in 2025.
Frequently Asked Questions
1. Why did Sage Therapeutics terminate its deal with Biogen?
The termination was largely due to negative results from the Phase 2 KINETIC 2 Study of SAGE-324, prompting a strategic shift in Sage's development plans.
2. What product collaboration remains between Sage and Biogen?
Sage Therapeutics and Biogen continue their partnership for the development of ZURZUVAE, an FDA-approved treatment for postpartum depression.
3. How does this termination affect Sage Therapeutics financially?
While Sage reported a net loss, they also indicated sufficient cash reserves to sustain operations and planned growth in sales strategies.
4. How is the market reacting to Sage Therapeutics' recent news?
Financial analysts have adjusted their stock price targets for Sage, reflecting a cautious outlook following the termination of the deal with Biogen.
5. What are the future plans for Sage Therapeutics?
Sage plans to focus on expanding its sales team and strategies to boost ZURZUVAE sales, aiming for improved performance in the upcoming quarters.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
Disclaimer: The content of this article is solely for general informational purposes only; it does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice; the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. The author's interpretation of publicly available data shapes the opinions presented here; as a result, they should not be taken as advice to purchase, sell, or hold any securities mentioned or any other investments. The author does not guarantee the accuracy, completeness, or timeliness of any material, providing it "as is." Information and market conditions may change; past performance is not indicative of future outcomes. If any of the material offered here is inaccurate, please contact us for corrections.
Related Articles
- Citi's Long-Term Forecast Reveals Potential Yen Strength
- Japan's Industrial Output Faces Challenges Amid Demand Fluctuations
- Intel Denies Arm's Bid for Product Division Amidst Market Challenges
- Cue Biopharma Sets $12 Million Public Offering to Fund Growth
- Peter Schiff Questions Bitcoin Versus Gold: Public Reaction
- Linglong Tire's European Factory Starts Mass Production Success
- Key Insights on Top Performing Stocks in Today's Market
- Kia Gwangmyeong EVO Plant: A New Era in EV Manufacturing
- RBI's Interest Rate Strategy: Insights for the Coming Months
- TRIBIT Unveils StormBox Blast 2: A 200W Bluetooth Revolution
Recent Articles
- Caterpillar's Growth Potential Amidst Global Economic Changes
- Innovative App Launched to Enhance Connections and Combat Loneliness
- Key Highlights on Central and Eastern Europe Fund's Russian Assets
- Investors Urged to Act: Class Action for New Fortress Energy
- MES Welcomes Marvin Riley as New CEO, Transitioning Leadership
- Filo Corp. Shareholders Embrace Strategic Move with BHP and Lundin
- Join the WM Technology, Inc. Investor Action Through Schall Law
- Pineapple Energy Secures New Funding to Enhance Operations
- AI Innovations Propel Growth in Global Road Safety Market
- Genprex's Delisting Challenges and Future Prospects Explained
- PIQNIC Partners with NZME to Transform Accounts Payable Efficiency
- Streamline Health: Upcoming Reverse Stock Split Overview
- AI Technologies and Their Impact on Car Leasing Growth
- AI-Enhanced Growth in Automotive Automation Set for 2024-2028
- Power REIT Announced Board Members and Auditor for 2024
- Momentus Inc. Faces Nasdaq Delisting but Plans to Appeal
- Glucotrack Inc. Stockholders Back Major Equity Issuance Plan
- ContextLogic Announces New Auditor to Enhance Financial Integrity
- Constellation Acquisition Corp I Extends Business Combination Deadline
- Solventum Corp Enhances Bylaws for Better Governance Clarity
- Brazil's Economic Outlook: Navigating Fiscal Challenges Ahead
- Colombian Market Update: COLCAP Sees Positive Gains Today
- Moscow Stock Exchange Sees Slight Gains Amid Mixed Performance
- Critical NTSB Safeguards for Boeing 737 Rudder Control Systems
- Strong Market Movements: Key Stocks to Watch and Trends
- Schwab's Share Split Strategy to Enhance ETF Appeal
- DraftKings Faces SEC Charges Over Disclosure Practices
- Psychedelics and Body Dysmorphic Disorder: Hope on the Horizon
- Voyager Acquisition Corp. Class A Shares and Warrants Trading Announcement
- GAP Secures New Credit Line: Strategic Move for Growth
- Innovative Event on Tissue Engineered Vessels for Vascular Trauma
- Transforming $100 Into a Fortune: The FICO Journey
- The Growth of AbbVie Stock: A Decade of Investment Success
- BlackBerry Reports Strong Q2 Performance with Revenue Gains
- Lamb Weston Holdings Declares Quarterly Dividend for Shareholders
- Investors of Agenus Inc. Must Act Now: Important Updates
- Discover Financial Services Reveals Third Quarter Earnings Schedule
- Advocacy for Injured Workers: A Call to Action at WSIB
- Legal Insights for Investors of WM Technology, Inc. Revealed
- NZME and PIQNIC Partner for Streamlined Accounts Payable
- Stella-Jones Secures C$400 Million with New 7-Year Notes Offering
- U.S. Cannabis Policy Transformation: Stronger Federal Involvement Necessary
- Real Good Food Company Boosts Growth with New Financing Deal
- SBG Funding's Remarkable Journey: Over $1 Billion for Small Biz
- Duke Energy Ready for Hurricane Helene: Power Restoration Efforts
- Global Generator Market Set for $21.4 Billion Expansion Ahead
- AI Transformation Fuels Growth in Sustainability Management Software
- Significant Growth Projected for Baby Safety Product Market
- Expanding Growth of Hormone Replacement Therapy Market Ahead
- Payroll Outsourcing Services Poised for USD 5.99 Billion Growth