SAGE - Sage Therapeutics: Reassessing Investment Post Parkinson's Failure (Rating Upgrade)

2024-04-18 08:00:00 ET

Summary

• Sage Therapeutics' investigational drug for Parkinson's disease, dalzanemdor, failed in a Phase 2 trial, leading to a 20% drop in the stock.
• Despite FDA approvals for PPD treatments, Sage's revenue remains low, impacting financial stability and market expectations.
• Sage's financials show a strong balance sheet with significant cash reserves, though operational losses are substantial.
• Due to lower valuations and potential upcoming catalysts, I am upgrading SAGE stock from "Strong Sell" to "Hold".

Sage Therapeutics Faces Setbacks with Dalzanemdor Failure

Sage Therapeutics' ( SAGE ) stock is down 27% since my "Strong Sell" recommendation last November. At the time, I voiced concerns regarding the company's main offering, Zurzuvae, which treats postpartum depression (PPD); their risky pipeline that targets challenging indications like Parkinson's; and their high cash burn....

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