Wedbush downgrades Sage Therapeutics to Neutral, lowers price target to $22

As previously reported, Wedbush analyst Laura Chico downgraded Sage Therapeutics (SAGE)to Neutral from Outperform with a price target of $22, down from $51. The firm notes that the simultaneous Zurzuvae approval in postpartum depression and rejection in major depressive disorder in major depressive disorder represents an unanticipated outcome. The key unanswered questions at this point are what will Zurzuvae pricing look like, and will the Biogen (BIIB)/Sage collaboration persist? From Wedbush’s view, it’s difficult to envision Biogen investing in additional clinical trials as its turnaround efforts unfold. Further clarity from the agency will likely be needed to make a call, the firm adds.