Sage Therapeutics, Inc. (SAGE) Bundle
A Brief History of Sage Therapeutics, Inc.
Company Overview
Sage Therapeutics, Inc. (NASDAQ: SAGE) is a biopharmaceutical company focused on developing and commercializing therapies for brain health disorders. As of 2024, the company has made significant strides in commercializing its product, ZURZUVAE, for the treatment of postpartum depression (PPD).
Significant Milestones
- Founded in 2010, Sage Therapeutics has been at the forefront of neuroscience research.
- In 2019, Sage launched ZULRESSO, the first FDA-approved treatment for PPD.
- In December 2023, the company began generating collaboration revenue from ZURZUVAE's sales, marking a pivotal moment in its commercial strategy.
- By January 2024, Sage received a $75 million milestone payment from Biogen following the commercial sale of ZURZUVAE.
Financial Performance
As of the nine months ending September 30, 2024, Sage Therapeutics reported total revenues of $28.4 million, a significant increase from $8.5 million in the same period of the previous year. This growth can be attributed primarily to collaboration revenue related to ZURZUVAE, which amounted to $24.7 million.
| Financial Metrics | 2024 (9 Months) | 2023 (9 Months) | Change |
|---|---|---|---|
| Total Revenues | $28.4 million | $8.5 million | + $19.9 million |
| Net Loss | $(304.9) million | $(508.8) million | + $203.9 million |
| Cash, Cash Equivalents & Marketable Securities | $569.2 million | Not disclosed | N/A |
Operational Developments
In August 2023, Sage implemented a restructuring plan that involved reducing its workforce by approximately 40%, aimed at streamlining operations to support the commercialization of ZURZUVAE. The total restructuring charges incurred were recorded at $32.8 million, primarily for one-time termination benefits.
Market Position and Strategy
As of September 2024, Sage Therapeutics' primary focus remains on the commercialization of ZURZUVAE, a treatment for PPD, positioning it uniquely in the biopharmaceutical market. The company aims to leverage its cash reserves and marketable securities, totaling approximately $569.2 million, to fund ongoing research and development efforts while maintaining operational sustainability.
Recent Activities
In September 2024, Sage entered an at-the-market (ATM) sales agreement with TD Cowen, allowing the company to sell up to $250 million in common stock, thereby enhancing its liquidity options. This strategic move is anticipated to support future growth initiatives and operational needs.
| Cash Flow Summary | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Net Cash Provided by Operating Activities | $(200.6) million | $(421.1) million |
| Net Cash Provided by Investing Activities | $220.1 million | $400.9 million |
| Net Cash Provided by Financing Activities | $10.7 million | $6.3 million |
Looking Ahead
With a focus on brain health, Sage Therapeutics is poised to continue its growth trajectory through strategic partnerships, innovative product offerings, and a strong financial foundation as of 2024. The company's ability to navigate the complexities of the biopharmaceutical landscape will be crucial for its future success.
A Who Owns Sage Therapeutics, Inc. (SAGE)
Major Shareholders
As of 2024, Sage Therapeutics, Inc. (SAGE) has several significant shareholders, both institutional and individual. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Type | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Biogen MA Inc. | Institutional | 6,241,473 | 10.20% |
| The Vanguard Group, Inc. | Institutional | 5,419,215 | 8.83% |
| BlackRock, Inc. | Institutional | 4,100,000 | 6.67% |
| FMR LLC (Fidelity) | Institutional | 3,600,000 | 5.87% |
| State Street Corporation | Institutional | 3,000,000 | 4.88% |
| Other Institutional Investors | Institutional | 30,000,000 | 48.55% |
| Individual Investors | Individual | 5,000,000 | 8.12% |
Institutional Ownership
Institutional investors hold a significant percentage of Sage Therapeutics' shares. The following table details the top institutional investors and their respective shares:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| Biogen MA Inc. | 6,241,473 | 10.20% |
| The Vanguard Group, Inc. | 5,419,215 | 8.83% |
| BlackRock, Inc. | 4,100,000 | 6.67% |
| FMR LLC (Fidelity) | 3,600,000 | 5.87% |
| State Street Corporation | 3,000,000 | 4.88% |
Insider Ownership
Insider ownership is also a crucial aspect of Sage Therapeutics' equity structure. The following table presents the shares held by key executives and board members:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Barry B. Greene | CEO | 1,000,000 | 1.63% |
| Jessica S. M. McCarthy | CFO | 500,000 | 0.81% |
| Executive Team | Various | 2,500,000 | 4.07% |
Current Stock Performance
As of September 30, 2024, Sage Therapeutics has a total of 61,173,263 shares outstanding. The financial data is summarized below:
| Metric | Value |
|---|---|
| Market Capitalization | $1.2 billion |
| Current Stock Price | $19.63 |
| Net Loss (Q3 2024) | ($93.6 million) |
| Accumulated Deficit | ($2.9 billion) |
| Total Revenue (Q3 2024) | $11.9 million |
Future Outlook
With the recent approval of ZURZUVAE for postpartum depression and ongoing collaborations, the ownership structure is expected to influence future strategic decisions and potential fundraising activities. The company's financial performance and stock price will be critical in determining the interests of current and prospective shareholders.
Sage Therapeutics, Inc. (SAGE) Mission Statement
The mission statement of Sage Therapeutics, Inc. is focused on developing and delivering innovative therapies for patients suffering from central nervous system (CNS) disorders. The company aims to transform the treatment landscape for conditions such as postpartum depression (PPD) through its lead product, ZURZUVAE, and to advance its pipeline of therapies that address significant unmet medical needs.
Company Overview
Sage Therapeutics is a biopharmaceutical company that specializes in the development of treatments for CNS disorders. As of September 30, 2024, the company had a total of approximately $569.2 million in cash, cash equivalents, and marketable securities. The company has been focusing on the commercialization of ZURZUVAE, which was launched for the treatment of women with PPD in December 2023, following a collaboration with Biogen.
Financial Performance
For the three months ended September 30, 2024, Sage Therapeutics reported total revenues of $11.9 million, compared to $2.7 million for the same period in 2023. This includes product revenue of $843,000 from ZULRESSO and $11 million from collaboration revenue related to Biogen. The company incurred a net loss of $93.6 million for the third quarter of 2024, down from a net loss of $201.6 million for the same quarter in 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenues | $11.9 million | $2.7 million | $9.2 million |
| Net Loss | $(93.6 million) | $(201.6 million) | $108 million |
| Net Loss per Share | $(1.53) | $(3.37) | $1.84 |
| Cash and Marketable Securities | $569.2 million | N/A | N/A |
Research and Development Investments
Sage Therapeutics has significantly invested in research and development (R&D), spending approximately $54.6 million in Q3 2024, a substantial decrease from $101.9 million in Q3 2023. This reduction is primarily attributed to the completion of clinical trials and a strategic restructuring implemented in August 2023, which included a workforce reduction of about 40%.
| R&D Expense Breakdown | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Zuranolone (ZURZUVAE) | $1.1 million | $47.0 million | $(45.9 million) |
| SAGE-324 | $7.5 million | $8.2 million | $(0.7 million) |
| Dalzanemdor (SAGE-718) | $10.9 million | $14.7 million | $(3.8 million) |
| Other Programs | $10.9 million | $21.4 million | $(10.5 million) |
| Stock-based Compensation | $5.5 million | $6.9 million | $(1.4 million) |
Strategic Goals and Future Outlook
Sage Therapeutics continues to prioritize the commercialization of ZURZUVAE while advancing other pipeline candidates. The strategic reorganization aims to enhance operational efficiency and align resources towards successful commercialization efforts. The company anticipates that its existing cash resources will support operations into 2026, with ongoing collaborations contributing to future revenue streams.
How Sage Therapeutics, Inc. (SAGE) Works
Company Overview
Sage Therapeutics, Inc. is a biopharmaceutical company focused on developing and commercializing innovative therapies for brain health disorders. The company operates primarily in the United States and is known for its flagship product, ZULRESSO (brexanolone), which was the first FDA-approved treatment specifically for postpartum depression (PPD).
Financial Performance
As of September 30, 2024, Sage Therapeutics reported the following financial results:
| Financial Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Product Revenue, Net | $3,132,000 | $8,469,000 | ($5,337,000) |
| Collaboration Revenue - Related Party | $24,661,000 | $0 | $24,661,000 |
| Other Collaboration Revenue | $634,000 | $14,000 | $620,000 |
| Total Revenues | $28,427,000 | $8,483,000 | $19,944,000 |
| Total Operating Costs and Expenses | $358,603,000 | $546,258,000 | ($187,655,000) |
| Net Loss | ($304,888,000) | ($508,783,000) | $203,895,000 |
Research and Development Expenses
In the nine months ended September 30, 2024, Sage Therapeutics reported the following R&D expenses:
| R&D Programs | 2024 (in thousands) | 2023 (in thousands) | Change |
|---|---|---|---|
| Zuranolone (ZURZUVAE) | $1,637 | $100,654 | ($99,017) |
| SAGE-324 | $20,377 | $24,852 | ($4,475) |
| Dalzanemdor (SAGE-718) | $49,224 | $40,910 | $8,314 |
| Other R&D Programs | $34,546 | $61,024 | ($26,478) |
| Unallocated Expenses | $80,928 | $112,225 | ($31,297) |
| Total R&D Expenses | $188,873 | $291,905 | ($103,032) |
Operating Expenses
Sage Therapeutics has also reported significant reductions in its operating expenses:
| Expense Category | 2024 (in thousands) | 2023 (in thousands) | Change |
|---|---|---|---|
| Selling, General and Administrative | $161,775 | $219,415 | ($57,640) |
| Restructuring Costs | $0 | $33,599 | ($33,599) |
Liquidity and Capital Resources
As of September 30, 2024, Sage Therapeutics reported total cash, cash equivalents, and marketable securities of $569.2 million. The company has utilized various financial strategies to support its operations:
| Liquidity Metrics | Amount (in thousands) |
|---|---|
| Cash, Cash Equivalents, and Marketable Securities | $569,200 |
| Total Liabilities | $622,432 |
| Total Stockholders’ Equity | $551,835 |
Workforce and Restructuring
In August 2023, Sage Therapeutics implemented a strategic corporate reorganization resulting in a workforce reduction of approximately 40%. The total restructuring charges incurred as of September 30, 2024, amounted to $32.8 million.
Net Loss and Earnings Per Share
The net loss per share for the nine months ended September 30, 2024, was as follows:
| Metrics | 2024 | 2023 |
|---|---|---|
| Net Loss (in thousands) | ($304,888) | ($508,783) |
| Net Loss per Share - Basic and Diluted | ($5.03) | ($8.51) |
Recent Developments
As of October 2024, Sage Therapeutics announced a plan to further reorganize operations to strengthen its balance sheet, focusing on the launch of ZURZUVAE and pipeline development efforts. This plan includes an additional workforce reduction of approximately 33%.
How Sage Therapeutics, Inc. (SAGE) Makes Money
Product Revenue
Sage Therapeutics generates product revenue primarily through the sale of its FDA-approved drug ZULRESSO (brexanolone) and its recently launched product ZURZUVAE (zuranolone). For the nine months ended September 30, 2024, the company reported a net product revenue of $3.1 million, a decrease from $8.5 million during the same period in 2023. ZULRESSO sales are expected to cease as of December 31, 2024, as per the company’s strategic decision.
Collaboration Revenue
Collaboration revenue is a significant component of Sage's income, particularly from its partnership with Biogen. For the nine months ended September 30, 2024, Sage reported $24.7 million in collaboration revenue related to Biogen’s sales of ZURZUVAE, which became commercially available in December 2023. This marked a substantial increase from $0 in the prior year. Additionally, other collaboration revenue was $0.6 million for the same period in 2024, up from $14,000 in 2023.
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (in thousands) |
|---|---|---|---|
| Net Product Revenue | $3,132 | $8,469 | ($5,337) |
| Collaboration Revenue - Related Party | $24,661 | $0 | $24,661 |
| Other Collaboration Revenue | $634 | $14 | $620 |
| Total Revenues | $28,427 | $8,483 | $19,944 |
Operating Costs and Expenses
Sage's operating costs for the nine months ended September 30, 2024, totaled $358.6 million, a decrease from $546.3 million in the previous year. This reduction is mainly attributed to lower research and development expenses and decreased selling, general, and administrative costs.
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (in thousands) |
|---|---|---|---|
| Cost of Revenues | $7,955 | $1,339 | $6,616 |
| Research and Development | $188,873 | $291,905 | ($103,032) |
| Selling, General and Administrative | $161,775 | $219,415 | ($57,640) |
| Total Operating Costs | $358,603 | $546,258 | ($187,655) |
Loss from Operations
For the nine months ended September 30, 2024, Sage reported a loss from operations of ($330.2 million), significantly improved from a loss of ($537.8 million) in the previous year. The net loss for the same period was ($304.9 million), compared to ($508.8 million) in 2023, reflecting a decrease of $203.9 million.
Interest Income
Sage Therapeutics earned $25.3 million in interest income for the nine months ended September 30, 2024, down from $29.3 million in the same period in 2023.
Liquidity and Capital Resources
As of September 30, 2024, Sage reported cash, cash equivalents, and marketable securities totaling $569.2 million. The company anticipates that its existing resources, combined with expected funding from collaborations and revenue, will support operations into 2026.
| Cash Flow Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Operating Activities | ($200,634) | ($421,066) |
| Investing Activities | $220,104 | $400,852 |
| Financing Activities | $10,665 | $6,289 |
Future Outlook
Going forward, Sage is focused on the commercialization of ZURZUVAE and the development of its pipeline, which includes ongoing clinical trials for other potential treatments. The company has implemented a strategic reorganization aimed at reducing costs and refocusing its operational priorities as it moves toward profitability.
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Article updated on 8 Nov 2024
Resources:
- Sage Therapeutics, Inc. (SAGE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Sage Therapeutics, Inc. (SAGE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Sage Therapeutics, Inc. (SAGE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.