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Sage Therapeutics (SAGE) Q3 Earnings Lag Estimates, Down 5%
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Sage Therapeutics (SAGE - Free Report) reported a loss of $3.37 per share for the third quarter of 2023, wider than the year-ago quarter’s loss of $2.31.
The reported loss included restructuring expenses of $33.6 million related to a reorganization plan implemented in August 2023. The adjusted loss per share in the quarter stood at $2.81 per share, missing the Zacks Consensus Estimate of a loss of $2.64.
Revenues in the quarter were $2.7 million, up 56% year over year. Sales missed the Zacks Consensus Estimate of $8.7 million.
Quarter in Detail
In the reported quarter, revenues were generated entirely from product revenues of the company’s first marketed drug, Zulresso (brexanolone), approved by the FDA in 2019 as the first-ever FDA-approved treatment for adults with postpartum depression (“PPD”).
Though the company received FDA approval for zuranolone, the first and only oral treatment for adults with PPD, it is yet to be commercially launched. The drug, which Sage has developed in collaboration with Biogen (BIIB - Free Report) , is expected to be launched next month under the trade name Zurzuvae. It intends to price the drug at $15,900 for an entire 14-day treatment course.
Research & development (R&D) expenses were $101.9 million, up 25% from the year-ago quarter’s levels. The upside was primarily due to expenses related to canceling excess purchase commitments for manufacturing as a result of the complete response letter received from the FDA for zuranolone for the treatment of major depressive disorder (“MDD”).
Selling, general and administrative expenses (SG&A) rose 27% from the prior-year quarter’s figure to $78.1 million. This increase can be attributed to increased stock-based compensation expenses during the quarter.
Shares of Sage were down 4.8% on Nov 7, likely due to the dismal earnings results and higher-than-expected operating expenses during the quarter. Year to date, the stock has declined 48.5% compared with the industry’s 15.1% fall.
Image Source: Zacks Investment Research
The company had $0.9 billion in cash, cash equivalents and marketable securities as of Sep 30, 2023, compared with $1.0 billion on Jun 30, 2023. This cash balance, combined with expected funding from collaboration revenues, is expected to support the company’s operations into 2026.
Pipeline Updates
Currently, Sage is focused on developing its lead neuropsychiatric and neurology programs, SAGE-718 and SAGE-324, respectively. As part of the reorganization plan (implemented in August 2023), it has paused all early-stage pipeline programs with the intention of making evidence-driven investments.
The lead neuropsychiatric drug, SAGE-718, is being evaluated as a potential treatment for patients with cognition dysfunction associated with Huntington’s disease (“HD”) across three ongoing clinical studies — two phase II studies (DIMENSION and SURVEYOR) and a phase III study (PURVIEW). The candidate is also being evaluated in separate mid-stage studies for treating cognitive issues associated with Parkinson’s disease (“PD”) and Alzheimer’s disease (“AD”). Data readouts from these studies are expected next year.
Management is evaluating SAGE-324 in the mid-stage KINETIC 2 study as a potential treatment for patients with essential tremors. The top-line data from the KINETIC 2 study is expected in mid-2024.
Zurzuvae and SAGE-324 are being developed by Sage in partnership with Biogen, per a deal signed in 2020. Per the terms of the agreement, Sage and Biogen will jointly commercialize drugs in the United States. At the same time, Biogen has the sole rights to market in ex-U.S. territories (except for Zurzuvae in Japan, Taiwan and South Korea, where Shionogi holds the rights).
In the past 30 days, estimates for Acadia’s 2023 loss per share have narrowed from 41 cents to 35 cents. During the same period, the earnings estimates per share for 2024 have risen from 60 cents to 79 cents. Shares of ACAD are up 47.6% in the year-to-date period.
Earnings of Acadia beat estimates in two of the last four quarters while missing the mark on the other two occasions, witnessing an average earnings surprise of 20.33%. In the last reported quarter, Acadia’s earnings beat estimates by 108.33%.
Apellis Pharmaceuticals’ loss estimates for 2024 have narrowed from $2.41 to $1.94 per share in the past 30 days. Year to date, Apellis Pharmaceuticals’ stock has lost 8.5%.
Apellis Pharmaceuticals beat earnings estimates in two of the last four quarters while missing the mark on the other two occasions, witnessing a negative earnings surprise of 3.91% on average. In the last reported quarter, APLS reported a negative earnings surprise of 39.29%.
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Sage Therapeutics (SAGE) Q3 Earnings Lag Estimates, Down 5%
Sage Therapeutics (SAGE - Free Report) reported a loss of $3.37 per share for the third quarter of 2023, wider than the year-ago quarter’s loss of $2.31.
The reported loss included restructuring expenses of $33.6 million related to a reorganization plan implemented in August 2023. The adjusted loss per share in the quarter stood at $2.81 per share, missing the Zacks Consensus Estimate of a loss of $2.64.
Revenues in the quarter were $2.7 million, up 56% year over year. Sales missed the Zacks Consensus Estimate of $8.7 million.
Quarter in Detail
In the reported quarter, revenues were generated entirely from product revenues of the company’s first marketed drug, Zulresso (brexanolone), approved by the FDA in 2019 as the first-ever FDA-approved treatment for adults with postpartum depression (“PPD”).
Though the company received FDA approval for zuranolone, the first and only oral treatment for adults with PPD, it is yet to be commercially launched. The drug, which Sage has developed in collaboration with Biogen (BIIB - Free Report) , is expected to be launched next month under the trade name Zurzuvae. It intends to price the drug at $15,900 for an entire 14-day treatment course.
Research & development (R&D) expenses were $101.9 million, up 25% from the year-ago quarter’s levels. The upside was primarily due to expenses related to canceling excess purchase commitments for manufacturing as a result of the complete response letter received from the FDA for zuranolone for the treatment of major depressive disorder (“MDD”).
Selling, general and administrative expenses (SG&A) rose 27% from the prior-year quarter’s figure to $78.1 million. This increase can be attributed to increased stock-based compensation expenses during the quarter.
Shares of Sage were down 4.8% on Nov 7, likely due to the dismal earnings results and higher-than-expected operating expenses during the quarter. Year to date, the stock has declined 48.5% compared with the industry’s 15.1% fall.
Image Source: Zacks Investment Research
The company had $0.9 billion in cash, cash equivalents and marketable securities as of Sep 30, 2023, compared with $1.0 billion on Jun 30, 2023. This cash balance, combined with expected funding from collaboration revenues, is expected to support the company’s operations into 2026.
Pipeline Updates
Currently, Sage is focused on developing its lead neuropsychiatric and neurology programs, SAGE-718 and SAGE-324, respectively. As part of the reorganization plan (implemented in August 2023), it has paused all early-stage pipeline programs with the intention of making evidence-driven investments.
The lead neuropsychiatric drug, SAGE-718, is being evaluated as a potential treatment for patients with cognition dysfunction associated with Huntington’s disease (“HD”) across three ongoing clinical studies — two phase II studies (DIMENSION and SURVEYOR) and a phase III study (PURVIEW). The candidate is also being evaluated in separate mid-stage studies for treating cognitive issues associated with Parkinson’s disease (“PD”) and Alzheimer’s disease (“AD”). Data readouts from these studies are expected next year.
Management is evaluating SAGE-324 in the mid-stage KINETIC 2 study as a potential treatment for patients with essential tremors. The top-line data from the KINETIC 2 study is expected in mid-2024.
Zurzuvae and SAGE-324 are being developed by Sage in partnership with Biogen, per a deal signed in 2020. Per the terms of the agreement, Sage and Biogen will jointly commercialize drugs in the United States. At the same time, Biogen has the sole rights to market in ex-U.S. territories (except for Zurzuvae in Japan, Taiwan and South Korea, where Shionogi holds the rights).
Sage Therapeutics, Inc. Price
Sage Therapeutics, Inc. price | Sage Therapeutics, Inc. Quote
Zacks Rank & Stocks to Consider
Sage currently has a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the overall healthcare sector include Acadia Pharmaceuticals (ACAD - Free Report) and Apellis Pharmaceuticals (APLS - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 30 days, estimates for Acadia’s 2023 loss per share have narrowed from 41 cents to 35 cents. During the same period, the earnings estimates per share for 2024 have risen from 60 cents to 79 cents. Shares of ACAD are up 47.6% in the year-to-date period.
Earnings of Acadia beat estimates in two of the last four quarters while missing the mark on the other two occasions, witnessing an average earnings surprise of 20.33%. In the last reported quarter, Acadia’s earnings beat estimates by 108.33%.
Apellis Pharmaceuticals’ loss estimates for 2024 have narrowed from $2.41 to $1.94 per share in the past 30 days. Year to date, Apellis Pharmaceuticals’ stock has lost 8.5%.
Apellis Pharmaceuticals beat earnings estimates in two of the last four quarters while missing the mark on the other two occasions, witnessing a negative earnings surprise of 3.91% on average. In the last reported quarter, APLS reported a negative earnings surprise of 39.29%.