Sage Mixed Results Amidst Pipeline Progress

 

• Revenue: Reported $7.9 million in total revenue for Q1 2024, surpassing the estimated $5.66 million.

• Net Loss: Recorded a net loss of $108.48 million, exceeding the estimated net loss of $100.23 million.

• Earnings Per Share (EPS): Reported a loss of $1.80 per share, slightly above the estimated loss of $1.65 per share.

• Cash Reserves: Ended the quarter with $717 million in cash, cash equivalents, and marketable securities.

• R&D Expenses: Research and development expenses amounted to $71.73 million, down from $92.83 million in the previous year.

• Commercial Progress: ZURZUVAE, for postpartum depression, saw over 700 prescriptions shipped in its first full quarter post-launch.

• Pipeline Development: Phase 2 study of dalzanemdor in Parkinsons Disease did not meet primary endpoint; ongoing studies in other indications continue.

On April 25, 2024, Sage Therapeutics Inc (NASDAQ:SAGE) disclosed its first-quarter financial outcomes and provided updates on its clinical pipeline, revealing a mix of progress and setbacks. The company reported a total revenue of $7.9 million, primarily driven by $6.2 million in collaboration revenue from ZURZUVAE, surpassing the estimated revenue of $5.66 million. However, the net loss widened to $108.48 million, or $1.80 per share, compared to the estimated loss per share of $1.65. The detailed financial data and pipeline updates were released in Sage's 8-K filing.

Q1 2024 Performance Highlights

The first quarter saw the successful commercial launch of ZURZUVAE in the U.S., marked by over 700 prescriptions shipped. This achievement reflects growing acceptance among healthcare providers, particularly obstetricians and gynecologists, who made up the largest group of prescribers. Furthermore, Sage and its collaborator, Biogen, have secured payer coverage for a majority of commercially covered lives, enhancing access to ZURZUVAE without complex prior authorizations.

Despite these advances, the quarter was not without challenges. The Phase 2 PRECEDENT Study of dalzanemdor (SAGE-718) in patients with mild cognitive impairment due to Parkinsons Disease did not meet its primary endpoint, leading to no further development plans for dalzanemdor in this indication. However, other studies in the dalzanemdor program, targeting Huntingtons Disease and Alzheimers Disease, are ongoing with results expected later in 2024.

As of March 31, 2024, Sage reported a robust balance sheet with $717 million in cash, cash equivalents, and marketable securities, down from $753 million at the end of 2023. Total assets stood at $767.6 million, while liabilities decreased to $61.8 million from $82.7 million. This financial position supports the company's ongoing and planned clinical programs.

Looking ahead, Sage anticipates further milestones for ZURZUVAE throughout 2024, including continued discussions with national and regional payors to expand access. The company also expects topline data from the Phase 2b KINETIC 2 study of SAGE-324 in Essential Tremor, aiming to define the optimal dose for sustained symptom control.

https://finance.yahoo.com/news/sage-therapeutics-inc-sage-q1-120412916.html