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SAGE Therapeutics (SAGE)
NASDAQ:SAGE
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SAGE Therapeutics
(NASDAQ:SAGE)43Neutral
Positive Factors
Coverage Improvement
Coverage for Zurzuvae continues to improve, with over 95% of commercial and Medicaid lives covered or having a path to coverage.
Demand Growth
Demand growth for Zurzuvae was significantly stronger, showing a 21% increase quarter over quarter.
Negative Factors
Leadership Departure
The recent departure of Chief Medical Officer Dr. Laura Gault adds further uncertainty to early-stage asset development, potentially impacting R&D and execution.
Missed Expectations
4Q24 missed expectations on the top and bottom line, largely due to Zurzuvae channel dynamics and one-time restructuring expenses.
Product Opportunity Uncertainty
The long-term commercial opportunity for the company’s only product, Zurzuvae for post-partum depression, remains unclear.
SAGE Therapeutics (SAGE) vs. S&P 500 (SPY)
Market Cap
$446.97M
Dividend YieldN/A
Average Volume (3M)1.66M
Price to Earnings (P/E)―
Beta (1Y)1.79
Revenue Growth-52.30%
EPS Growth27.13%
CountryUS
Employees353
SectorHealthcare
Sector Strength74
IndustryBiotechnology
Share Statistics
EPS (TTM)-6.60
Shares Outstanding61,480,946
10 Day Avg. Volume1,344,837
30 Day Avg. Volume1,657,682
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)11.18
Price to Cash Flow (P/CF)-1.70
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$8.20Price Target Upside12.79% Upside
Rating ConsensusHold
Number of Analyst Covering17
SAGE Therapeutics Business Overview & Revenue Model
Company DescriptionSAGE Therapeutics, Inc. is a biopharmaceutical company focused on the development and commercialization of novel medicines to treat life-altering central nervous system disorders. Based in Cambridge, Massachusetts, SAGE Therapeutics explores new pathways and mechanisms within the brain to address unmet medical needs, specifically targeting conditions such as depression, schizophrenia, and related neurological disorders. The company's core products include innovative therapies such as ZULRESSO (brexanolone) for the treatment of postpartum depression.
How the Company Makes MoneySAGE Therapeutics generates revenue primarily through the sales of its commercial products, particularly ZULRESSO, which is approved by the FDA for the treatment of postpartum depression. The company's revenue streams also include potential milestone payments, licensing fees, and royalties from strategic partnerships and collaborations with other pharmaceutical companies. Additionally, SAGE Therapeutics invests in research and development to expand its pipeline of candidates, which may lead to future revenue opportunities through new product launches or expanded indications for existing therapies.
SAGE Therapeutics Financial Statement Overview
Summary
SAGE Therapeutics faces significant financial challenges with declining revenue, ongoing losses, and negative cash flows. While the company maintains low leverage, its ability to generate profits and cash remains a concern, impacting its overall financial health.Income Statement
SAGE Therapeutics shows a significant decline in revenue, with a notable decrease from previous years. The company's net and gross profit margins are negative, indicating ongoing losses. The EBIT and EBITDA margins are also negative, highlighting operational challenges.15
Very Negative
Balance Sheet
The company's debt-to-equity ratio is low, suggesting limited leverage, which is positive. However, the return on equity is negative due to ongoing losses, and there's a declining equity ratio, indicating reduced shareholder equity stability.40
Negative
Cash Flow
SAGE Therapeutics has negative free cash flow and operating cash flow, reflecting substantial cash outflows. The ratios of cash flow to net income indicate inefficiencies in converting income to cash, underscoring cash management issues.20
Very Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 41.24M | 86.45M | 7.69M | 6.31M | 1.11B | Gross Profit |
| 31.80M | 84.30M | 6.87M | 5.75M | 1.11B | EBIT |
| -432.37M | -579.85M | -546.99M | -460.91M | 596.23M | EBITDA |
| -409.49M | -545.07M | -545.87M | -456.73M | 626.60M | Net Income Common Stockholders |
| -400.67M | -541.49M | -503.27M | -450.83M | 606.07M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 504.42M | 753.18M | 1.27B | 1.74B | 2.10B | Total Assets |
| 547.22M | 882.28M | 1.36B | 1.83B | 2.16B | Total Debt |
| 11.84M | 5.17M | 12.13M | 18.43M | 28.10M | Net Debt |
| -69.19M | -65.83M | -150.57M | -275.80M | -1.63B | Total Liabilities |
| 82.13M | 82.75M | 103.85M | 96.26M | 86.91M | Stockholders Equity |
| 465.09M | 799.53M | 1.25B | 1.73B | 2.07B |
| Cash Flow | Free Cash Flow | |||
| -267.19M | -541.14M | -460.97M | -378.55M | 663.93M | Operating Cash Flow |
| -267.19M | -540.59M | -460.04M | -378.18M | 664.28M | Investing Cash Flow |
| 266.68M | 442.91M | 325.43M | -1.00B | 442.68M | Financing Cash Flow |
| 10.66M | 6.03M | 3.07M | 13.33M | 426.76M |
SAGE Therapeutics Technical Analysis
Neutral
7.27
Price Trends
6.92
Positive
6.49
Positive
7.98
Negative
Market Momentum
0.13
Positive
51.91
Neutral
67.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SAGE, the sentiment is Neutral. The current price of 7.27 is below the 20-day moving average (MA) of 7.28, above the 50-day MA of 6.92, and below the 200-day MA of 7.98, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 51.91 is Neutral, neither overbought nor oversold. The STOCH value of 67.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SAGE.
SAGE Therapeutics Risk Analysis
SAGE Therapeutics disclosed 48 risk factors in its most recent earnings report. SAGE Therapeutics reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SAGE Therapeutics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $2.87B | 12.64 | 38.89% | ― | 31.85% | ― | |
78 Outperform | $81.43B | 18.46 | 15.95% | 0.12% | 8.27% | 10.35% | |
69 Neutral | $22.06B | 13.48 | 10.36% | ― | -1.60% | 39.71% | |
68 Neutral | $11.05B | 33.69 | 14.16% | ― | 24.81% | 33.67% | |
64 Neutral | $128.40B | ― | -3.15% | ― | 11.64% | -114.72% | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% | |
43 Neutral | $446.97M | ― | -63.37% | ― | -52.30% | 27.13% |
* Healthcare Sector Average
Performance Comparison
SAGE
SAGE Therapeutics
7.40
-12.95
-63.64%
ACAD
ACADIA Pharmaceuticals
17.19
-2.79
-13.96%
BIIB
Biogen
150.71
-76.65
-33.71%
NBIX
Neurocrine
110.87
-26.87
-19.51%
REGN
Regeneron
744.83
-224.49
-23.16%
VRTX
Vertex Pharmaceuticals
500.01
87.56
21.23%
SAGE Therapeutics Earnings Call Summary
Earnings Call Date: Feb 11, 2025 | % Change Since: 1.11% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Neutral
The earnings call reflects positive momentum with the successful launch and strong adoption of ZURZUVAE in the market, supported by effective commercial strategies and comprehensive coverage. However, challenges remain with revenue growth not keeping pace with demand and significant net losses impacting financial health.Highlights
Successful Launch of ZURZUVAE
ZURZUVAE, the first and only oral treatment for postpartum depression (PPD), surpassed initial expectations with over 6,600 prescriptions shipped in 2024, indicating strong market demand and adoption among healthcare providers.
Commercial Coverage and Access
Greater than 95% of commercial and Medicaid lives are covered, with most having no step edits or complex prior authorizations, reflecting strong payer recognition of ZURZUVAE's value.
Salesforce Expansion and Market Penetration
The salesforce expansion led to a 33% growth in patient shipments in targeted territories, highlighting the market's responsiveness to promotional efforts.
Financial Position and Cash Runway
The company reported a cash runway expected to last until mid-2027, supported by existing cash, anticipated collaboration funding, and projected revenues.
Lowlights
Revenue Growth Lagging Behind Prescription Demand
Despite a 21% increase in prescriptions in Q4 2024, revenue only grew by 4% due to inventory and channel management factors, indicating a disconnect between demand and sales.
Net Loss and Restructuring Expenses
Recorded a net loss of $95.8 million in Q4 2024, with one-time restructuring expenses of $22.5 million highlighting the financial challenges faced.
Company Guidance
During Sage Therapeutics' fourth quarter and full year 2024 financial results conference call, the company outlined its strategic priorities for 2025, emphasizing the commercial success of ZURZUVAE for postpartum depression (PPD). Key metrics included over 6,600 prescriptions shipped in 2024, with a 21% increase in Q4 alone. The company reported $11.4 million in Q4 collaboration revenue from ZURZUVAE sales, contributing to a total of $36.1 million for the year. Notably, OBGYNs accounted for nearly 80% of prescriptions, with 70% of patients receiving ZURZUVAE as their first treatment for PPD. Sage also highlighted its financial position, with cash reserves projected to support operations until mid-2027, and plans to expand its sales force and enhance media investments to drive ZURZUVAE's market penetration further.SAGE Therapeutics Corporate Events
Executive/Board Changes
SAGE Therapeutics Announces CMO Resignation and Interim Appointment
Neutral
Mar 4, 2025
On March 3, 2025, Sage Therapeutics announced the resignation of its Chief Medical Officer, Dr. Laura Gault, effective March 21, 2025, as she pursues a new opportunity. The company has appointed its current Chief Scientific Officer, Dr. Mike Quirk, to take over key responsibilities on an interim basis, ensuring continuity in strategic guidance for its clinical development programs.
Product-Related AnnouncementsM&A TransactionsBusiness Operations and Strategy
SAGE Therapeutics Outlines 2025 Strategy and Acquisition Proposal
Neutral
Jan 13, 2025
Sage Therapeutics announced its strategic focus for 2025 at the J.P. Morgan Healthcare Conference, emphasizing the commercialization of ZURZUVAE for postpartum depression. The company also received a non-binding acquisition proposal from Biogen Inc., which could have significant implications for its future operations and market positioning.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.