Sage Therapeutics rejects Biogen’s acquisition offer

Sage Therapeutics rejects Biogens acquisition offer

USA – Sage Therapeutics’ board has unanimously rejected an acquisition offer from Biogen, which valued the company at around US $469 million, stating that the bid “significantly undervalues” Sage.

This move was expected, as Sage had previously filed a lawsuit to block Biogen’s offer. Additionally, the company revealed it has initiated a strategic review to explore various options, including a potential business combination, strategic transaction, or even a sale.

While Sage has not provided a specific timeline for this review, the board emphasized that there is no certainty it will lead to a change in direction.

philippinespharmahealthcare advert 2

For now, the company remains focused on the commercialization of its postpartum depression (PPD) treatment, Zurzuvae (zuranolone).

Biogen, which already has a longstanding partnership with Sage and co-markets Zurzuvae, had proposed to buy the 90% of Sage shares it does not already own for US $7.22 each.

The offer has been seen as opportunistic by some analysts, given Sage’s significant share price decline of over 90% in recent years due to a series of regulatory setbacks and pipeline challenges.

Zurzuvae, once expected to be a blockbuster, achieved only US $49 million in sales during the first nine months of 2024 after its U.S. launch for PPD in late 2023.

Its prospects suffered a major blow when the FDA declined to approve the drug for the broader major depressive disorder (MDD) indication.

In addition, Biogen decided to end its partnership with Sage on the essential tremor candidate SAGE-324 following disappointing results from the mid-stage KINETIC 2 study.

Sage has also reported failed Phase 2 trials for dalzanemdor in Alzheimer’s, Parkinson’s, and Huntington’s diseases.

Despite these setbacks, Sage is continuing to explore speculative programs, such as SAGE-324, which is being investigated as a potential treatment for seizures in developmental and epileptic encephalopathies.

Additionally, the company is developing the early-stage candidate SAGE-319 for addressing behavioral symptoms in neurodevelopmental disorders.

Sage remains financially stable with a cash position of US $569 million as of the third quarter of 2024, thanks in part to significant cost-cutting measures, including widespread job reductions.

After issuing its statement, Sage’s stock rose nearly 5%, although it lost much of those gains in after-hours trading.