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.