Analyst Creates Bullish Pitch For Sage Therapeutics Around Greater Enthusiasm For Its Depression Drug, Zuranolone

  • RBC Capital Markets has upgraded Sage Therapeutics Inc SAGE to Outperform from Sector Perform with a price target of $60, up from $40.
  • The analyst sees a more substantial likelihood that depression candidate zuranolone will win FDA approval.
  • The FDA has assigned a Prescription Drug User Fee Act (PDUFA) action date of August 5, 2023.
  • Overall, 25% of surveyed physicians indicated they would try zuranolone in their first year (up from 19% in an earlier survey).
  • The analyst expects peak sales of $1.9 billion for major depressive disorder and $200 million for postpartum depression. 
  • Related: Sage Therapeutics/Biogen Highlight Additional Data From Depression Candidate.
  • Also, the recent announcement that no AdComm will be required further de-risks U.S. approvability, writes the analyst and thus raising the probability of success to 75%
  • The company is developing zuranolone in collaboration with Biogen Inc BIIB.
  • "We also note partner BIIB has been increasingly vocal about its commitment and enthusiasm around the program, which should bode well for zuranolone's prospects," RBC analyst notes.
  • Price Action: SAGE shares are up 11.9% at $44.28 on the last check Monday.
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