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Sage Therapeutics downgraded to Sector Perform from Outperform at RBC Capital

RBC Capital analyst Brian Abrahams downgraded Sage Therapeutics to Sector Perform from Outperform with a price target of $25, down from $71. Zuranolone may have received approval in postpartum depression, but the Complete Response Letter with requirement for additional clinical work places at “considerable risk” the drug’s future opportunity in the much more sizable major depressive disorder indication, the analyst tells investors in a research note. The firm expects “meaningful stock downside on this setback” and sees fair value at $25 per share.

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