Sage Therapeutics(SAGE) - 2025 Q2 - Quarterly Results

Second Quarter 2025 Business and Financial Highlights Executive Summary Sage Therapeutics reported strong Q2 2025 results, driven by ZURZUVAE revenue, pending acquisition, and solid cash - Collaboration revenue from ZURZUVAE reached $23.2 million in Q2 2025, representing a 68% increase from the first quarter[2][6] - Supernus Pharmaceuticals' acquisition of Sage Therapeutics is expected to close in the third quarter of 2025[2][9] - Cash, cash equivalents, and marketable securities stood at $366 million as of June 30, 2025[2][10] - CEO Barry Greene stated that Q2 results reflect revenue acceleration driven by increased investment, strong execution, and growing momentum behind ZURZUVAE[3] ZURZUVAE Commercial Performance ZURZUVAE, an oral PPD treatment, achieved significant Q2 2025 commercial growth, marked by increased prescriptions and broad payer coverage - ZURZUVAE was approved by the FDA in August 2023 and commercially available in the U.S. in December 2023[4] - Shipped greater than 4,000 prescriptions to women with PPD in Q2 2025, a 36% increase from Q1 2025, and over 13,500 since launch[6] - OBGYNs accounted for approximately 80% of all ZURZUVAE prescriptions in Q2 2025[6] - Greater than 95% of Commercial and Medicaid lives are covered or have a path to coverage, with most having no step edits or complex prior authorizations[6] Pipeline Development Sage Therapeutics advances its pipeline with SAGE-319 Phase 1 data expected by late 2025, NMDA receptor NAM platform exploration, and SAGE-324 indication evaluation - SAGE-319, a GABAA receptor PAM, is being investigated for behavioral symptoms in neurodevelopmental disorders, with Phase 1 multiple ascending dose (MAD) study data expected by late 2025[5] - The company is exploring its NMDA receptor negative allosteric modulator (NAM) platform, focusing on neurodevelopmental disorders with SAGE-817 and SAGE-039[7] - SAGE-324 is under evaluation for potential indications, including seizures in developmental and epileptic encephalopathies (DEEs), with an update expected in mid-2025[8] Corporate Acquisition Sage Therapeutics announced a definitive agreement to be acquired by Supernus Pharmaceuticals via a tender offer, expected to close in Q3 2025 - Supernus Pharmaceuticals will acquire Sage for $8.50 per share in cash plus one non-tradable contingent value right (CVR) worth up to $3.50 per share[9] - The total consideration for the acquisition is up to $12.00 per share, or approximately $795 million in aggregate[9] - The CVR is payable upon achieving certain net sales and commercial milestones[9] - The transaction is expected to close in the third quarter of 2025[9] Second Quarter 2025 Financial Performance Overview of Financial Results Sage Therapeutics reported a reduced net loss for Q2 2025, driven by increased ZURZUVAE collaboration revenue and lower R&D expenses, despite higher SG&A Net Loss Overview | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :----------------------- | :---------- | :---------- | :----------- | | Net Loss | $(49.7) million | $(102.9) million | $(53.2) million decrease | | Net Loss per share | $(0.79) | $(1.70) | $(0.91) decrease | Cash Position | Metric | June 30, 2025 | March 31, 2025 | Change (QoQ) | | :-------------------------------- | :------------ | :------------- | :----------- | | Cash, cash equivalents, marketable securities | $366 million | $424 million | $(58) million decrease | Revenue Overview | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------------- | :---------- | :---------- | :----------- | | Collaboration revenue (ZURZUVAE) | $23.2 million | $7.4 million | $15.8 million increase | | Other collaboration revenue | $8.5 million | $0.6 million | $7.9 million increase | | Total revenues | $31.66 million | $8.65 million | $23.01 million increase | - Research and development expenses decreased to $23.7 million in Q2 2025 from $62.6 million in Q2 2024, primarily due to 2024 and 2023 reorganization cost-saving measures[10] - Selling, general and administrative expenses increased to $62.0 million in Q2 2025 from $56.0 million in Q2 2024, mainly due to increased ZURZUVAE commercialization efforts and professional fees related to the strategic alternatives review process[14] Condensed Consolidated Balance Sheets As of June 30, 2025, Sage Therapeutics reported decreases across key balance sheet items, including cash, total assets, total liabilities, and total stockholders' equity, compared to December 31, 2024 Condensed Consolidated Balance Sheets (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Cash, cash equivalents and marketable securities | $365,572 | $504,418 | | Total assets | $422,922 | $547,222 | | Total liabilities | $54,185 | $82,133 | | Total stockholders' equity | $368,737 | $465,089 | Condensed Consolidated Statements of Operations For the three months ended June 30, 2025, Sage Therapeutics saw substantial revenue growth and a reduced net loss, despite higher SG&A expenses Condensed Consolidated Statements of Operations (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Product revenue, net | $0 | $600 | $0 | $2,289 | | Collaboration revenue - related party | $23,209 | $7,420 | $37,036 | $13,633 | | Other collaboration revenue | $8,451 | $634 | $8,688 | $634 | | Total revenues | $31,660 | $8,654 | $45,724 | $16,556 | | Cost of revenues | $(55) | $1,407 | $600 | $2,676 | | Research and development | $23,917 | $62,564 | $46,676 | $134,297 | | Selling, general and administrative | $61,997 | $55,983 | $119,589 | $108,556 | | Restructuring | $(230) | $0 | $283 | $0 | | Total operating costs and expenses | $85,629 | $119,954 | $167,148 | $245,529 | | Loss from operations | $(53,969) | $(111,300) | $(121,424) | $(228,973) | | Interest income | $4,323 | $8,431 | $9,546 | $17,634 | | Other income (expense), net | $(6) | $15 | $12 | $2 | | Net loss | $(49,652) | $(102,854) | $(111,866) | $(211,337) | | Net loss per share - basic and diluted | $(0.79) | $(1.70) | $(1.80) | $(3.50) | Additional Information About Sage Therapeutics Sage Therapeutics is a biopharmaceutical company dedicated to pioneering brain health medicines, notably developing the only two FDA-approved treatments for postpartum depression, and is headquartered in Cambridge, Massachusetts - Sage Therapeutics' mission is to pioneer solutions for life-changing brain health medicines[12] - The company has developed the only two FDA-approved treatments indicated for postpartum depression[12] - Founded in 2010, Sage Therapeutics is headquartered in Cambridge,