Sage Therapeutics announces plans to reorganize business operations

Sage Therapeutics announced plans to reorganize its business operations and pipeline priorities to support goals for long-term business growth, including the planned commercial launch of ZURZUVAE for women with postpartum depression in late 2023. Following a strategic review, the company will: Refine pipeline development efforts to advance SAGE-718 and SAGE-324, as well as pause certain earlier-stage programs, with the goal of making evidence-driven investments; Implement a ~40% workforce reduction designed to right-size the organization as the company works to achieve sustained growth and allow for commercial hires to support the goal of a successful launch of ZURZUVAE to treat women with PPD; Align its leadership team structure to scale with pipeline and commercial priorities. The reorganization plan is intended to enable Sage to strengthen its balance sheet and position the company for long-term growth potential. Based on the post-reorganization operating plan which includes Sage’s pipeline prioritization, workforce reduction, and additional incremental commercial hires, the company expects: Annualized net savings of approximately $240 million, of which 60% is related to R&D; A non-recurring charge of approximately $36 million to $38 million associated with the reorganization, primarily incurred in the third quarter of 2023; The potential to earn a milestone payment of $75 million from Biogen related to the first commercial sale of ZURZUVAE for the treatment of PPD; Cash, cash equivalents, and marketable securities of approximately $1.0 billion as of June 30, 2023 along with anticipated funding from ongoing collaborations and potential revenue will support operations into 2026.