Sage Therapeutics Mulls Job, Pipeline Cuts After FDA Decision
07 August 2023 - 9:23PM
Dow Jones News
By Colin Kellaher
Sage Therapeutics is weighing cuts to its staff and pipeline as
part of efforts to extend its cash runway after the company and
partner Biogen failed to win U.S. Food and Drug Administration
approval of their depression drug Zurzuvae in major depressive
disorder.
Sage on Monday said that while it is currently well capitalized,
it is evaluating its resource allocation following the FDA setback,
including pipeline prioritization and a workforce
reorganization.
The FDA late Friday approved Zurzuvae as the first pill to treat
postpartum depression, but the agency rejected the drug for major
depressive disorder, a much larger opportunity, saying the
companies didn't provide substantial evidence of effectiveness and
calling for additional studies.
Sage and Biogen late Friday said they are evaluating their next
steps for the drug in major depressive disorder.
Sage on Monday said it ended the second quarter with $1 billion
in cash, equivalents and marketable securities, and the Cambridge,
Mass., company said its current resources, along with anticipated
funding from collaborations and potential revenue, are enough to
support its operations into 2025.
The company said its planned right-sizing of its organization
and portfolio should extend that runway and reduce expenses next
year, adding that "we have an opportunity to emerge as an even
stronger company."
Sage said it expects to disclose more details and its next steps
before the end of the third quarter.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
August 07, 2023 07:08 ET (11:08 GMT)
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