Sage Therapeutics(US:SAGE) GlobeNewswire News Roomยท2024-09-07 14:07Core Viewpoint - The article discusses a class action lawsuit against Sage Therapeutics, alleging violations of the Securities Exchange Act of 1934 due to misleading statements regarding the effectiveness of its drug candidates and subsequent stock price declines following negative disclosures [1][4][5]. Company Overview - Sage Therapeutics is a biopharmaceutical company focused on developing brain health medicines, including zuranolone for postpartum depression and major depressive disorder, dalzanemdor for mild cognitive impairment due to Parkinson's Disease, and SAGE-324 for essential tremor [3][4]. Allegations of the Lawsuit - The lawsuit claims that Sage Therapeutics and its executives made false statements about the effectiveness of zuranolone, dalzanemdor, and SAGE-324, leading investors to believe these drugs had better clinical and regulatory prospects than they actually did [4][5]. - Specific allegations include: - Zuranolone was less effective for major depressive disorder than claimed, affecting its FDA approval chances [4][5]. - Dalzanemdor did not meet its primary endpoint in a Phase 2 study, leading to a halt in its development [6]. - SAGE-324 failed to demonstrate significant efficacy in treating essential tremor, resulting in the cessation of its clinical development [7][8]. Stock Price Impact - Following the disclosure of the FDA's Complete Response Letter regarding zuranolone, Sage Therapeutics' stock price fell nearly 54% [5]. - The announcement of dalzanemdor's Phase 2 study failure led to a nearly 20% drop in stock price [6]. - The failure of SAGE-324's study resulted in a nearly 21% decline in stock price [8]. Legal Process - Investors who purchased Sage Therapeutics securities during the class period (April 12, 2021, to July 23, 2024) can seek to be appointed as lead plaintiff in the lawsuit, which allows them to represent the interests of all affected investors [1][9].