Sage Therapeutics' stock plunges as Parkinson's drug trial disappoints

By Eleanor Laise

Company still has hopes for experimental treatment for Huntington's and Alzheimer's diseases

Sage Therapeutics Inc. shares dropped 17% early Wednesday after the company said its experimental treatment for mild cognitive impairment in patients with Parkinson's disease fell flat in a clinical trial.

The drug, dalzanemdor, failed to produce a statistically significant benefit versus placebo in the Phase 2 study, Sage (SAGE) said in a release. The company said it does not plan any further development of the drug for Parkinson's disease.

Sage is "disappointed by the results," CEO Barry Greene said in a statement, but the outcome of this trial does not necessarily predict results for dalzanemdor in other neurodegenerative conditions. The company still expects to have results of Phase 2 studies in Huntington's disease and Alzheimer's disease later this year, Greene said in the statement.

Nearly 1 million people in the U.S. are living with Parkinson's disease, according to the Parkinson's Foundation. Although the condition is known primarily for its motor symptoms such as tremors, roughly half of people with the disease are affected by mild cognitive impairment - memory and thinking changes that are noticeable but don't significantly impact daily activities, according to the foundation.

Dalzanemdor was generally well tolerated in the Parkinson's trial, and no new safety issues were seen, Sage said.

Sage scored a win last year when the U.S. Food and Drug Administration approved Zurzuvae, which was co-developed with Biogen Inc. (BIIB), as the first oral treatment for postpartum depression, but the market was disappointed that the drug was not also approved for major depressive disorder.

Sage's stock is down 28% in the year to date, while the S&P 500 SPX has gained 5.9%.

-Eleanor Laise

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04-17-24 0942ET

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