Sage Therapeutics Mulls Job, Pipeline Cuts After FDA Decision
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)
Copyright (c) 2023 Dow Jones & Company, Inc.-
5 Undervalued Stocks to Buy to Play a Little Defense
-
Markets Brief: AI Leaders Excel In Earnings Season So Far
-
What History Tells Us About the Fed’s Next Move
-
What’s Happening In the Markets This Week
-
Alphabet’s New Dividend: What Investors Need to Know
-
Going Into Earnings, Is Palantir Stock a Buy, a Sell, or Fairly Valued?
-
Going Into Earnings, Is Eli Lilly Stock a Buy, a Sell, or Fairly Valued?
-
What’s the Difference Between the CPI and PCE Indexes?
-
After Earnings, Is Tesla Stock a Buy, a Sell, or Fairly Valued?
-
After Earnings, Is GE Aerospace Stock a Buy, a Sell, or Fairly Valued?
-
3 Good Stocks to Buy with Your Tax Refund in 2024 (Or with Any Extra Money)
-
SoFi Earnings: Revenue Growth Slows on Lower Loan Growth and Higher Credit Costs
-
Tesla: Full Self-Driving Approval In China Supports Our View for Deliveries Growth In 2024
-
Philips Earnings: Firm Reaches $1.1 Billion Settlement Agreement
-
AbbVie Earnings: Next-Generation Immunology Drugs Help Offset Humira Biosimilar Pressure
-
Exxon Earnings: Ignore Earnings Shortfall as Long-Term Growth and Improvement on Track