RBC ‘not altogether surprised’ by Sage move lower after failure in PD

After Sage Therapeutics provided topline data from the Phase 2 PRECEDENT trial of dalzanemdor in Parkinson’s disease, or PD, and revealed that the trial did not meet its primary endpoint, RBC Capital noted that the firm had been cautious into these initial results given non-definitive prior data and is “not altogether surprised by the stock move” following today’s dalzanemdor failure in PD considering the lack of any efficacy signals in the trial that may have perpetuated hopes in other indications. While the firm believes that the mechanistic rationale is stronger in Huntington’s disease, or HD, it believes more commercial and clinical certainty would be needed before stepping in, despite depressed stock levels. The firm, which also cites a gradual initial launch of Zurzuvae so far and its “limited enthusiasm for other pipeline programs,” has a Sector Perform rating and $26 price target on Sage shares.