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1. Company Snapshot

1.a. Company Description

Sage Therapeutics, Inc., a biopharmaceutical company, develops and commercializes medicines to treat central nervous system disorders.Its lead product candidate is ZULRESSO, an intravenous formulation of brexanolone for the treatment of postpartum depression (PPD) in adults.The company's product pipeline also includes zuranolone, a neuroactive steroid, which is in Phase III clinical trials for treating PPD, major depressive disorders, treatment resistant disorders, generalized anxiety disorders, and bipolar depression; and SAGE-324, a compound that is in Phase II clinical trial to treat essential tremors, as well as has completed Phase I clinical trial for epilepsy and Parkinson's diseases.


In addition, its product pipeline comprises SAGE-718, an oxysterol-based positive allosteric modulator of the NMDA receptor, which has completed Phase I clinical trial for the treatment of depression, Huntington's disease, Alzheimer's disease, attention deficit hyperactivity disorder, schizophrenia, and neuropathic pain.Sage Therapeutics, Inc.has a strategic collaboration with Shionogi & Co., Ltd.


for the development and commercialization of zuranolone in Japan, Taiwan, and South Korea; and a collaboration and license agreement with Biogen MA Inc.to jointly develop and commercialize SAGE-217 and SAGE-324 products.The company was formerly known as Sterogen Biopharma, Inc.


and changed its name to Sage Therapeutics, Inc.in September 2011.Sage Therapeutics, Inc.


was incorporated in 2010 and is headquartered in Cambridge, Massachusetts.

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1.b. Last Insights on SAGE

The recent performance of Sage Therapeutics, Inc. has been driven by ongoing investigations into potential securities claims. The company's stock has been impacted by the investigations, with multiple law firms, including Bronstein, Gewirtz & Grossman, LLC, announcing their involvement in the matter. These investigations are focused on potential claims on behalf of purchasers of Sage Therapeutics, Inc. securities prior to April 12, 2021. The firm's site, bgandg.com/SAGE, provides additional information and allows investors to assist the investigation.

1.c. Company Highlights

2. Sage Therapeutics Delivers Strong Q1 2025 Results on ZURZUVAE's Commercial Success

Sage Therapeutics reported a solid financial performance in Q1 2025, driven by the growing commercial success of ZURZUVAE, the first oral treatment for postpartum depression (PPD). The company generated $13.8 million in collaboration revenue, a 21% increase from Q4 2024, with over 3,000 prescriptions shipped, reflecting a 22% quarter-over-quarter growth in demand. Despite a net loss of $1.01 per share, slightly below the consensus estimate of $0.99, the company's financial health remains robust, supported by a $424 million cash reserve that is expected to fund operations until mid-2027. As CEO Barry Greene noted, "ZURZUVAE saw over 20% quarter-over-quarter growth in demand and revenue, with continued growth expected."

Publication Date: May -01

📋 Highlights
  • Commercial Success of ZURZUVAE: Shipped prescriptions to over 3,000 women, a 22% increase from Q4 2024, generating $13.8 million in collaboration revenue, up 21% quarter-over-quarter.
  • Growing Adoption and Usage: 70% of prescriptions are first-line treatment for PPD, with 80% coming from OB/GYNs, reflecting strong physician awareness and high coverage rates.
  • Pipeline Advancement: Focused on neuropsychiatry and neurodevelopmental disorders, with SAGE-319 and NMDA receptor NAMs showing promise for future growth.
  • Financial Health: R&D expenses decreased 68% year-over-year, with $424 million in cash reserves expected to support operations until mid-2027.
  • Sales Force and Growth: Sales force expansion is complete, with ZURZUVAE expected to drive continued quarter-over-quarter growth, becoming the frontline treatment for PPD.

Commercial Success of ZURZUVAE

ZURZUVAE continues to gain traction as a first-line treatment for PPD, with 70% of prescriptions being used as the initial therapy and 80% coming from OB/GYNs. Physician awareness is high, with 90% aided awareness among target prescribers, and the company is expanding its reach through both personal and non-personal promotion. Notably, 95% of prescriptions are approved by payers, often within 2-3 days, debunking earlier reports of reimbursement challenges. The growing number of active prescribers, with new prescribers becoming repeat users, underscores the product's increasing adoption.

Pipeline Progress and Strategic Initiatives

Beyond ZURZUVAE, Sage Therapeutics is advancing its pipeline, with a focus on neuropsychiatry and neurodevelopmental disorders. SAGE-319 and NMDA receptor NAMs are showing promise, while the company is evaluating the regulatory pathway and portfolio fit for SAGE-324. A decision on advancing its development is expected mid-year, with no developmental spending currently allocated. Additionally, the company's strategic alternatives process continues, aiming to maximize shareholder value amid strong commercial execution.

Valuation and Financial Health

Trading at a price-to-sales (P/S) ratio of 9.85, the market appears to be pricing in high growth expectations for ZURZUVAE. However, the negative enterprise value-to-EBITDA (EV/EBITDA) ratio of -1.21 and a free cash flow yield of -66.64% reflect the company's current loss-making position. Despite this, the company's cash runway and pipeline progress suggest a pathway to profitability, with ZURZUVAE projected to turn cash flow positive by 2026. With a net debt-to-EBITDA ratio of 0.09, Sage Therapeutics maintains a healthy balance sheet to support its strategic initiatives.

3. NewsRoom

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Sage Therapeutics, Inc. (SAGE) Reports Q2 Loss, Beats Revenue Estimates

Jul -30

Source: zacks.com

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$HAREHOLDER ALERT: Class Action Attorney Juan Monteverde Investigates the Merger of SpartanNash Company (NASDAQ: SPTN)

Jul -01

Source: globenewswire.com

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What Makes Sage Therapeutics (SAGE) a New Buy Stock

Jul -01

Source: zacks.com

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Phathom Pharmaceuticals Appoints Anne Marie Cook as Chief Legal Officer and Corporate Secretary

Jun -23

Source: globenewswire.com

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SAGE THERAPEUTICS INVESTOR ALERT by the Former Attorney General of Louisiana: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of Sage Therapeutics, Inc. - SAGE

Jun -19

Source: businesswire.com

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SAGE to be Acquired by Supernus Pharmaceuticals in $795 Million Deal

Jun -17

Source: zacks.com

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These Analysts Revise Their Forecasts On Sage Therapeutics Following Acquisition News

Jun -17

Source: benzinga.com

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Bronstein, Gewirtz & Grossman, LLC Is Investigating Sage Therapeutics, Inc. (SAGE) And Encourages Stockholders to Connect

Jun -17

Source: accessnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.27%)

6. Segments

Novel Medicines

Expected Growth: 10.27%

Sage Therapeutics' novel medicines drive 10.27% growth, fueled by increasing demand for mental health treatments, particularly for depression and postpartum depression. Zulresso's FDA approval and commercialization, along with a strong pipeline of promising therapies, contribute to the company's rapid expansion.

7. Detailed Products

Zulresso

Zulresso is the first and only FDA-approved treatment for postpartum depression (PPD) in adults. It is an intravenous infusion that works quickly to reduce symptoms of PPD.

SAGE-324

SAGE-324 is an oral neuroactive steroid that is being developed for the treatment of essential tremor, a neurological disorder characterized by involuntary and rhythmic shaking.

SAGE-718

SAGE-718 is an oral, once-daily therapy that is being developed for the treatment of Parkinson's disease and other neurodegenerative disorders.

8. Sage Therapeutics, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Sage Therapeutics, Inc. operates in a highly competitive industry, but the threat of substitutes is mitigated by the company's focus on developing novel treatments for complex and rare diseases, making it difficult for substitutes to emerge.

Bargaining Power Of Customers

Sage Therapeutics, Inc. primarily sells its products to wholesalers, distributors, and pharmacies, which have limited bargaining power due to the company's strong brand recognition and limited competition.

Bargaining Power Of Suppliers

Sage Therapeutics, Inc. relies on a limited number of suppliers for raw materials and manufacturing services, which can lead to some bargaining power, but the company's strong relationships and contracts mitigate this risk.

Threat Of New Entrants

The biotechnology industry is highly competitive, and new entrants can easily disrupt the market with innovative products and technologies, posing a significant threat to Sage Therapeutics, Inc.'s market share.

Intensity Of Rivalry

The biotechnology industry is highly competitive, with many established players and new entrants vying for market share, leading to intense rivalry and competition for Sage Therapeutics, Inc.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 0.64%
Debt Cost 3.95%
Equity Weight 99.36%
Equity Cost 8.47%
WACC 8.44%
Leverage 0.65%

11. Quality Control: Sage Therapeutics, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Fennec Pharmaceuticals

A-Score: 6.0/10

Value: 8.2

Growth: 8.6

Quality: 6.4

Yield: 0.0

Momentum: 10.0

Volatility: 3.0

1-Year Total Return ->

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Sage Therapeutics

A-Score: 4.9/10

Value: 7.4

Growth: 6.1

Quality: 4.8

Yield: 0.0

Momentum: 9.0

Volatility: 2.3

1-Year Total Return ->

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Bluebird Bio

A-Score: 3.6/10

Value: 9.8

Growth: 3.6

Quality: 5.1

Yield: 0.0

Momentum: 0.0

Volatility: 3.3

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SAB Biotherapeutics

A-Score: 3.1/10

Value: 8.8

Growth: 1.2

Quality: 6.9

Yield: 0.0

Momentum: 1.5

Volatility: 0.3

1-Year Total Return ->

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Enanta Pharmaceuticals

A-Score: 2.8/10

Value: 7.2

Growth: 1.2

Quality: 3.9

Yield: 0.0

Momentum: 4.0

Volatility: 0.3

1-Year Total Return ->

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Lyra Therapeutics

A-Score: 2.5/10

Value: 6.4

Growth: 4.7

Quality: 3.4

Yield: 0.0

Momentum: 0.5

Volatility: 0.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

8.68$

Current Price

8.68$

Potential

-0.00%

Expected Cash-Flows