Breaking News: Sage Therapeutics Terminates Key Agreement with Biogen, Impacting SAGE-324 Development
Sage Therapeutics, a leading pharmaceutical company, has announced the termination of its collaboration agreement with Biogen regarding the development of SAGE-324, a drug molecule for essential tremor treatment. This decision follows negative results from the Phase 2 KINETIC 2 Study, leading to the discontinuation of clinical development for this indication.
Under the original agreement, Sage and Biogen were set to jointly develop products containing SAGE-217 and SAGE-324, with Biogen handling commercialization outside the US. Despite the termination of SAGE-324, the partnership continues for ZURZUVAE®, an FDA-approved oral treatment for postpartum depression.
With the termination, Biogen's licenses for SAGE-324 products will expire, but Sage will receive a perpetual license for related technology. The termination signifies a shift in Sage's partnership landscape, impacting financial outlooks. Truist Securities and Piper Sandler have revised their ratings and price targets for Sage's stock.
Sage reported collaboration revenue for Q2 2024, driven by Zurzurvae sales. Despite a net loss, the company holds significant cash reserves and plans to expand its sales force to boost sales in 2025. This development highlights the importance of monitoring pharmaceutical partnerships and their impact on company performance and investor sentiment.