BofA downgraded Sage Therapeutics (SAGE) to Neutral from Buy with a price target of $25, down from $66, after the company and partner Biogen (BIIB) announced the FDA approved zuranolone for postpartum depression, or PPD, but also issued a complete response letter for the drug to treat major depressive disorder, or MDD. While “not a total surprise” after Biogen had “started to provide indirect signals on its earnings call last week,” the update overall is still disappointing and the firm thinks the risk that Biogen could exit the partnership is now higher since the bigger MDD indication was not approved and it is still unclear what the FDA will ask for in a reapplication and what the timeline might be.
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Read More on SAGE:
- Sage Therapeutics downgraded to Hold from Buy at Stifel
- American downgraded, United upgraded: Wall Street’s top analyst calls
- Sage (NASDAQ:SAGE) Plummets On FDA Snub for Zuranolone in Major Depression Disorder
- Biogen price target lowered to $290 from $310 at BofA
- Biogen price target lowered to $269 from $276 at Wedbush