Sage Therapeutics cut to Underperform at BofA after Parkinson’s trial fails

As previously reported, BofA downgraded Sage Therapeutics to Underperform from Neutral with a price target of $14, down from $24, after Sage reported the phase 2 PRECEDENT study evaluating dalzanemdor in mild cognitive impairment in Parkinson’s disease, or PD, did not meet the primary endpoint. The firm, which notes that the company announced they are not pursuing further development in PD, thinks the update in PD puts in question the potential for dalzanemdor to show benefit in cognition in other indications like Huntington’s and Alzheimer’s. The company has a strong balance sheet, but their cash burn is high, adds the firm, which thinks “meaningful positive updates from the pipeline are needed.”