Sage Therapeutics streamlines structures: More focus on core projects

Sage Therapeutics, a well-known biotechnology company, plans to significantly reduce its workforce by 165 employees, which accounts for 55% of its R&D team and 33% of the total workforce. This is part of a restructuring plan aimed at strengthening the company’s financial stability and long-term operational capabilities while ensuring sufficient flexibility for short-term priorities. According to a press release dated October 17, the measures are expected to be largely completed by the end of the year and incur costs of $26 to $28 million in the fourth quarter of 2024. A significant part of this realignment involves supporting the commercial launch of Zurzuvae (Zuranolone), the first orally administered drug for postpartum depression, which was approved by the FDA in August 2023. This therapy, a collaboration between Sage and Biogen, has achieved considerable, albeit moderate, sales since its launch in December 2023. Despite Zurzuvae's success in the postpartum depression sector, the drug encountered hurdles in the treatment of major depressive disorder (MDD). The FDA requested further studies as the existing evidence for this application was deemed insufficient. In response to this and other challenges, such as the discontinuation of Alzheimer's research for the molecule Dalzanemdor, Sage is significantly reducing its workforce to focus on core business areas. Additionally, hopes for Dalzanemdor are pinned on ongoing clinical trials for the treatment of Huntington's disease, with results expected by the end of 2024.