Drug Discovery and Development

  • Home Drug Discovery and Development
  • Drug Discovery
  • Genomics/Proteomics
  • Oncology
  • Neurological Disease
  • Infectious Disease
  • Orphan Drugs
  • R&D 100 Awards

Biogen bets $1.5B on Sage Therapeutics’ neurological drugs

By Brian Buntz | December 3, 2020

BiogenBiogen (NSDQ:BIIB) has entered into a licensing agreement with Sage Therapeutics (NSDQ:SAGE) to commercialize zuranolone (SAGE-217) and SAGE-324. 

It will pay $1.5 billion in addition to potential milestone payments. 

Zuranolone is an investigational neuroactive steroid that could treat major depressive disorder, postpartum depression, insomnia and other psychiatric disorders. 

SAGE-324 could potentially treat essential tremor and other neurological disorders.

Biogen had been banking on Alzheimer’s drug Aducanumab’s blockbuster potential until an FDA advisory committee voiced skepticism about its potential.  

The two companies are likely to focus initially on commercializing zuranolone, which is the subject of several Phase 3 trials. “SAGE-324, on the other hand, is still in Phase IIa development,” said Philippa Salter, a neurology analyst at GlobalData. 

Zuranolone had shown promising results in Phase 2 studies for patients with major depressive disorder, postpartum depression and bipolar depression. The drug faced a setback, however, when its Phase 3 MOUNTAIN study of the medicine failed to meet its primary endpoint. 

But the drug still has potential, Salter said. Sage recently announced that the drug improved symptoms of depression in the majority of patients within 14 days.  

If further studies bear out this result, the drug could fill a significant unmet need for major depressive disorder, Salter said. Current drugs on the market generally take “a few weeks of treatment” to work, she added. “Zuranolone’s approval as a rapid-acting, short course treatment would be a welcome and much needed addition to the MDD treatment paradigm,” Salter.

Sage’s stock dipped on Dec. 1, however, after two analysts weighed in on the deal with Biogen. Raymond James analyst Dane Leone downgraded Sage’s stock while Citi analyst Neena Bitritto-Garg reduced her price target for the company.

GlobalData anticipates that zuranolone will launch in the U.S. in 2022. 

Tell Us What You Think! Cancel reply

Related Articles Read More >

Johnson & Johnson
Johnson & Johnson vaccine trial results expected soon
OncoSec eyes next steps with its cancer immunotherapy candidate
Pharma researcher charged with theft of trade secrets  
Norway investigating deaths of 23 individuals who received COVID-19 vaccine

DeviceTalks Tuesdays

DeviceTalks Tuesdays

MEDTECH 100 INDEX

Medtech 100 logo
Market Summary > Current Price
The MedTech 100 is a financial index calculated using the BIG100 companies covered in Medical Design and Outsourcing.

Need Drug Discovery news in a minute?

We Deliver!
Drug Discovery & Development Enewsletters get you caught up on all the mission critical news you need. Sign up today.
Enews Signup

R&D Twitter

Tweets by @RandDWorld
Drug Discovery and Development
  • Enews Signup
  • Contact Us
  • R&D World
  • Pharmaceutical Processing
  • Drug Delivery Business News

Copyright © 2021 WTWH Media LLC. All Rights Reserved. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media
Privacy Policy | Advertising | About Us

Search Drug Discovery

  • Home Drug Discovery and Development
  • Drug Discovery
  • Genomics/Proteomics
  • Oncology
  • Neurological Disease
  • Infectious Disease
  • Orphan Drugs
  • R&D 100 Awards