SAGE - Sage upgraded to outperform at RBC on greater confidence in zuranolone approval
2023-03-13 10:58:31 ET
- RBC Capital Markets upgraded Sage Therapeutics ( NASDAQ: SAGE ) to outperform from underperform as it sees a stronger likelihood that depression candidate zuranolone will win approval from the US FDA.
- The firm also upped its price target to $60 from $40 (~52% upside based on Friday's close).
- Analyst Brian Abrahams said the recent announcement that the FDA would not convene at advisory committee meeting for zuranolone bods well for approval. He see a 75% probability of success.
- Also, a survey of physicians RBC conducted found that more are warming up to the drug, which is being developed with Biogen ( BIIB ), given its fast-acting mechanism of action.
- The latest survey found that 25% of them would try zuranolone in its first year, up from 19% in an earlier survey.
- RBC now sees peak sales of $1.9B for depression and $200M for postpartum depression.
- Read why Seeking Alpha contributor William Meyers rates Sage ( SAGE ) a buy.
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Sage upgraded to outperform at RBC on greater confidence in zuranolone approval