Sage Therapeutics, Inc. SAGE reported a loss of $1.70 per share for the second quarter of 2024, wider than the Zacks Consensus Estimate of a loss of $1.68. The company had reported a loss of $2.68 per share in the year-ago quarter.
Revenues in the second quarter totaled $8.6 million, significantly up from $2.5 million reported in the year-ago period. The upside can be attributed to strong uptake for the recently launched depression drug Zurzuvae (zuranolone), which is marketed in partnership with drug giant Biogen BIIB. Revenues fell slightly short of the Zacks Consensus Estimate of $9 million.
Quarter in Detail
Total revenues in the reported quarter comprised product and collaboration revenues.
Product revenues came in at $0.6 million, recorded from the company’s first marketed drug, Zulresso (brexanolone), which was approved by the FDA in 2019 as the first-ever FDA-approved treatment for adults with postpartum depression (PPD). Zulresso sales plunged 76% year over year due to cannibalization from Zurzuvae.
Collaboration revenues from the sale of Zurzuvae were $7.4 million in the second quarter of 2024, up 19% on a sequential basis. Collaboration revenues account for 50% of net revenues recorded when Biogen ships the drug to distributors. Biogen recorded $15 million in Zurzuvae product sales in the second quarter.
Zurzuvae, the first and only oral treatment indicated for adults with PPD, was approved in August 2023 and commercially launched in December.
Per Sage Therapeutics, more than 1400 prescriptions were shipped and delivered during the quarter.
Sage Therapeutics, along with partner Biogen, equally shares profits and losses for the commercialization of Zurzuvae in the United States. In ex-U.S. markets, Biogen records product sales (excluding Japan, Taiwan and South Korea, where Shionogi holds the rights) and pays royalties to SAGE.
Research & development (R&D) expenses were $62.6 million, down 35.5% from the year-ago quarter’s levels. The downside was due to restructuring measures, including reduced headcount and lower spending on early-stage pipeline programs.
Selling, general and administrative expenses (SG&A) declined 25.9% from the prior-year quarter’s figure to $56 million. The downside was caused by reduced headcount and reduced expenditures.
Year to date, shares of SAGE have plunged 49.5% compared with the industry’s decline of 2.4%.
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The company had $647 million in cash, cash equivalents and marketable securities as of Jun 30, 2024, compared with $717 million on Mar 31, 2024. This cash balance, combined with expected funding from collaboration revenues, is expected to support SAGE’s ongoing operations into 2026.
2024 Guidance
Management does not expect to receive any milestone payments from collaborations in the remainder of 2024.
The company anticipates operating expenses to decline in 2024 compared with the year-ago period’s level. Also, revenues from Zulresso sales will continue to decline in the upcoming quarters due to the availability of Zurzuvae.
Pipeline Updates
Sage Therapeutics currently focuses on developing its lead neuropsychiatric and neurology programs, dalzanemdor (formerly SAGE-718) and SAGE-324, respectively.
Last month, Sage Therapeutics and Biogen announced top-line data from the phase II KINETIC 2 study, which evaluated SAGE-324 as a potential treatment for essential tremor (ET). The study failed to demonstrate a statistically significant dose-response relationship on the primary endpoint in participants with ET.
Based on the disappointing data, SAGE and BIIB decided to stop further clinical development of SAGE-324 in ET.
In June, SAGE reported that the phase II SURVEYOR study evaluating dalzanemdor as a potential treatment for patients with cognition dysfunction caused by Huntington's disease (“HD”) met its primary endpoint.
SAGE is also investigating dalzanemdor in the larger phase II DIMENSION study, which is designed to evaluate the efficacy of dalzanemdor dosed over 12 weeks in people with cognitive impairment associated with HD. Data from this study is expected in late 2024.
Dalzanemdor is also being evaluated in the phase II LIGHTWAVE study for treating mild cognitive impairment and mild dementia associated with Alzheimer’s disease. Top-line data from this study is expected later in 2024.
Sage Therapeutics, Inc. Price, Consensus and EPS Surprise
Sage Therapeutics, Inc. price-consensus-eps-surprise-chart | Sage Therapeutics, Inc. Quote
Zacks Rank & Stocks to Consider
Sage Therapeutics currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the healthcare sector are United Therapeutics Corporation UTHR and Halozyme Therapeutics, Inc. HALO, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for United Therapeutics’ 2024 earnings per share have improved from $24.62 to $25.59. Earnings per share estimates for 2025 have improved from $27.00 to $28.32. Year to date, shares of UTHR have jumped 42.5%.
UTHR’s earnings beat estimates in each of the trailing four quarters, the average surprise being 12.41%.
In the past 60 days, estimates for Halozyme’s 2024 earnings per share have improved from $3.69 to $3.90. Earnings per share estimates for 2025 have improved from $4.50 to $4.81. Year to date, shares of HALO have soared 49.5%.
HALO’s earnings beat estimates in three of the trailing four quarters and met the same on the remaining occasion, the average surprise being 9.40%.
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Today, See These 5 Potential Home Runs >>Biogen Inc. (BIIB) : Free Stock Analysis Report
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Sage Therapeutics, Inc. (SAGE) : Free Stock Analysis Report
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