Biogen Offers to Buy Remaining Stake in Sage Therapeutics

Acquisition Proposal - Biogen has made an unsolicited, non-binding proposal to acquire Sage Therapeutics for $7.22 per share, representing a 30$5.55 on Friday [1] - Biogen currently owns a 10.2% stake in Sage Therapeutics [1] - Sage Therapeutics' board will review and evaluate the offer [1] Stock Performance - Sage Therapeutics' stock surged 46% in after-hours trading following the news, while Biogen's shares declined slightly [2] - Over the past year, Biogen's shares have declined 40%, and Sage Therapeutics' stock has dropped 79.1%, compared to a 15.9% decrease in the industry [2] Zurzuvae Collaboration - Sage Therapeutics and Biogen have a collaboration for the commercialization of Zurzuvae, approved for postpartum depression (PPD) in August 2023 [3] - The companies equally share profits and losses for Zurzuvae in the US, while Biogen records product sales in non-US markets (excluding Japan, Taiwan, and South Korea) and pays royalties to Sage [4] - Zurzuvae has not yet been approved in the EU [4] Zurzuvae Development Setback - The FDA issued a complete response letter for Zurzuvae's major depressive disorder (MDD) indication in August 2023, requesting additional clinical studies [5] - In October 2024, the companies decided not to pursue further development of Zurzuvae for MDD due to the need for more time and investment [6] - If Biogen acquires Sage Therapeutics, it will gain full ownership of Zurzuvae, which has been outperforming launch expectations [6] Pipeline Setbacks - Sage Therapeutics discontinued the development of dalzanemdor (SAGE-718) for all indications in November 2024 after mid-stage studies failed to meet primary endpoints [8] - Biogen terminated its rights under the collaboration agreement for SAGE-324 (BIIB124) in essential tremor (ET) after a phase II study failed in July 2024 [9] Zacks Rank & Biotech Stocks - Sage Therapeutics has a Zacks Rank 2 (Buy), while Biogen has a Zacks Rank 3 (Hold) [10] - Top-ranked biotech stocks include Puma Biotechnology (PBYI) and Castle Biosciences (CSTL), both with a Zacks Rank 1 (Strong Buy) [10] - Castle Biosciences' 2025 earnings estimates have narrowed from a loss of $1.88 per share to a loss of$1.84 per share, with shares surging 51.0% over the past year [11] - Puma Biotechnology's 2025 earnings per share estimates have increased from 52 cents to 55 cents, despite a 33.1% decline in shares over the past year [11] - Castle Biosciences has beaten earnings estimates in each of the trailing four quarters, with an average surprise of 172.72% [11] - Puma Biotechnology has beaten earnings estimates in three of the trailing four quarters, with an average surprise of 32.78% [12]