Biogen Proposes Acquisition of Sage Therapeutics in $442 Million Deal

Acquisition Offer:
Biogen has submitted an offer to buy the remaining shares of Sage Therapeutics for $7.22 per share, totaling approximately $442 million12.

Current Stake:
Biogen already owns a 10.2% stake in Sage Therapeutics, following a $650 million equity investment as part of a $1.5 billion development deal in 20201.

Background:
The partnership between Biogen and Sage has focused on developing zuranolone (Zurzuvae) for major depressive disorder (MDD) and postpartum depression (PPD), as well as SAGE-324 for essential tremor and other neurological disorders13.

Regulatory and Clinical Challenges:
Sage Therapeutics has faced significant setbacks, including the failure of zuranolone to win approval for MDD and the discontinuation of SAGE-324 in essential tremor after it failed to meet the primary endpoint in a Phase II study1.

Market Reaction:
Analyst reactions to the proposed deal are mixed, with some suggesting that the offer undervalues Zurzuvae, while others see it as a prudent move for Biogen to maximize the value of the Zurzuvae franchise15.

Sage’s Financial Situation:
Sage Therapeutics has reported significant financial challenges, including a 90% drop in share price over the past 18 months and two significant layoff rounds in the past two years1.

Development Pipeline:
Sage’s development pipeline is relatively slim, with only a few projects in early stages, including SAGE-319 for social interaction disorders and two other preclinical programs1.

Sources:

1. https://www.biospace.com/business/biogen-submits-offer-to-buy-embattled-partner-sage

2. https://www.pm360online.com/news/biogen-proposes-to-buy-remaining-stake-in-sage-in-442-million-deal/

3. https://investors.biogen.com/news-releases/news-release-details/biogen-and-sage-therapeutics-announce-global-collaboration

5. https://www.biopharmadive.com/news/biogen-sage-acquisition-deal-offer-wall-street/737141/