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Mar 31, 2020
Sage Q1 2020 Earnings Report
Sage reported first quarter 2020 financial results and highlighted pipeline and business progress.
Key Takeaways
Sage Therapeutics reported $2.3 million in net revenues from ZULRESSO in Q1 2020 and is advancing its pipeline with several clinical trials planned for zuranolone, SAGE-324, and SAGE-718, while also undergoing corporate restructuring to focus on core programs and reduce costs.
ZULRESSO revenue for Q1 2020 was $2.3 million, a 17% increase over Q4 2019.
Sage plans to initiate three new short-term zuranolone clinical studies in 2020, targeting PPD, acute rapid response therapy (RRT) in MDD, and episodic treatment of MDD.
Corporate restructuring is expected to result in approximate annualized cost savings of $170 million.
Phase 2 clinical trials of SAGE-324 in 1H and SAGE-718 in 2H 2020 are planned to continue progress in neurology and neuropsychiatry franchises.
Forward Guidance
Sage anticipates de minimis revenues from sales of ZULRESSO in the second quarter of 2020 and expects the COVID-19 pandemic will continue to have an adverse impact on sales of ZULRESSO even after pandemic-related restrictions are eased.
Positive Outlook
- Initiate Phase 3 trial evaluating a two-week course of zuranolone 50 mg in women with PPD
- Initiate Phase 3 trial evaluating a two-week course of zuranolone 50 mg, when co-initiated with an open-label SSRI, as an acute rapid response therapy in patients with MDD
- Initiate Phase 3 trial evaluating a two-week course of zuranolone 50 mg in patients with MDD (acute study intended to support episodic indication)
- Report topline data from Phase 3 MDD SHORELINE Study (30 mg)
- Initiate Phase 2a open-label study or studies in various disorders associated with cognitive dysfunction
Challenges Ahead
- Expects de minimis revenues from sales of ZULRESSO in the second quarter of 2020.
- The Company does not plan to provide revenue guidance for the balance of 2020.
Historical Earnings Impact
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