H.C. Wainwright sees potential competition for Sage from Biogen

H.C. Wainwright analyst Douglas Tsao says that while a takeover of Sage Therapeutics (SAGE) comes as no surprise, but a deal with Supernus (SUPN) is unexpected, and “leaves open the door for additional competition.” The merger agreement includes a “modest” breakup fee of just $22.4M payable to Supernus in the event Sage accepts a superior offer, the analyst tells investors in a research note. The firm believes the “relatively modest breakup fee” would not dissuade Biogen (BIIB) from pursuing a bid for Sage “if it is inclined to do so.” Biogen would have no need for a pitch book or to conduct extensive due diligence because it works alongside Sage in commercializing Zurzuva, contends H.C. Wainwright. The firm reiterates a Neutral rating on Sage with a $12 price target.