Sage Therapeutics Mulls Job, Pipeline Cuts After FDA Decision

By Colin Kellaher

Sage Therapeutics is weighing cuts to its staff and pipeline as part of efforts to extend its cash runway after the company and partner Biogen failed to win U.S. Food and Drug Administration approval of their depression drug Zurzuvae in major depressive disorder.

Sage on Monday said that while it is currently well capitalized, it is evaluating its resource allocation following the FDA setback, including pipeline prioritization and a workforce reorganization.

The FDA late Friday approved Zurzuvae as the first pill to treat postpartum depression, but the agency rejected the drug for major depressive disorder, a much larger opportunity, saying the companies didn't provide substantial evidence of effectiveness and calling for additional studies.

Sage and Biogen late Friday said they are evaluating their next steps for the drug in major depressive disorder.

Sage on Monday said it ended the second quarter with $1 billion in cash, equivalents and marketable securities, and the Cambridge, Mass., company said its current resources, along with anticipated funding from collaborations and potential revenue, are enough to support its operations into 2025.

The company said its planned right-sizing of its organization and portfolio should extend that runway and reduce expenses next year, adding that "we have an opportunity to emerge as an even stronger company."

Sage said it expects to disclose more details and its next steps before the end of the third quarter.

Write to Colin Kellaher at [e-mail]

(END) Dow Jones Newswires

August 07, 2023 07:08 ET (11:08 GMT)

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