After Series Of Trial Setbacks, Sage Therapeutics To Lay Off One-Third Workforce
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On Thursday, Sage Therapeutics, Inc. (NASDAQ:SAGE) announced a strategic reorganization of its business operations to support the ongoing launch of Zurzuvae (zuranolone) in postpartum depression.
The reorganization is intended to enable Sage to strengthen its balance sheet, extend its cash runway, and position the company for long-term growth potential.
The reorganization is planned to be substantially completed by the end of the fourth quarter of 2024.
The company will lay off over 165 employees (approximately 33% of its total workforce and approximately 55% of its R&D workforce), including changes to the leadership team.
Sage expects a non-recurring charge of approximately $26 million to $28 million associated with the reorganization.
The company anticipates that implementing the restructuring will extend its cash runway. Sage will also implement early-stage pipeline prioritization.
The company will focus its pipeline development efforts ahead of a clinical study readout for dalzanemdor in Huntington’s Disease, which is expected later this year.
In July, Sage and Biogen Inc (NASDAQ:BIIB) announced to close the ongoing open-label safety study of SAGE-324 in essential tremor and do not plan to conduct further clinical development of SAGE-324 in essential tremor.
The KINETIC 2 study did not demonstrate a statistically significant dose-response relationship in change from baseline to Day 91 based on the primary endpoint, The Essential Tremor Rating Assessment Scale (TETRAS) Performance Subscale (PS) Item 4 (upper limb) total score.
In September, Biogen terminated its rights under the collaboration and license agreement with Sage, which was specific to the SAGE-324 program.
Last week, Sage pulled a plug on the further clinical development of dalzanemdor in Alzheimer’s after the LIGHTWAVE Study did not demonstrate a statistically significant difference from baseline in participants treated with dalzanemdor versus placebo on the Wechsler Adult Intelligence Scale Fourth Edition (WAIS-IV) Coding Test score at Day 84, the study’s primary outcome measure.
Price Action: SAGE stock is down 4.81% at $6.92 at last check Thursday.
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