SAGE Therapeutics: Hold Rating Amidst Zurzuvae Success and Dalzanemdor Setbacks

In a report released today, Douglas Tsao from H.C. Wainwright maintained a Hold rating on SAGE Therapeutics (SAGE – Research Report), with a price target of $25.00.

Douglas Tsao has given his Hold rating due to a combination of factors surrounding SAGE Therapeutics. The initial success of Zurzuvae, the company’s treatment for postpartum depression (PPD), has been noteworthy with sales surpassing expectations. The product has gained momentum with a significant number of prescriptions written and fulfilled, indicating a solid market demand. The treatment enjoys a unique market position as the only branded oral option for PPD, a niche that faces less competition compared to other neuropsychiatric indications. Additionally, the company’s efforts in marketing and advocating for the therapy have been robust, resulting in substantial insurance coverage and the absence of restrictive authorization requirements for the prescriptions filled.
However, despite these positive aspects, Tsao expresses caution due to setbacks with another of SAGE’s treatments, dalzanemdor, which failed in the PRECEDENT study. This failure has led to a more conservative outlook on the company’s short-term prospects, prompting a reduction in the price target for SAGE’s stock. The balance between the encouraging performance of Zurzuvae and the challenges faced with dalzanemdor contribute to Tsao’s decision to maintain a Hold rating, suggesting that while there are promising developments, there are also significant uncertainties that may affect the company’s future performance.

According to TipRanks, Tsao is a 4-star analyst with an average return of 4.1% and a 37.04% success rate. Tsao covers the Healthcare sector, focusing on stocks such as SAGE Therapeutics, Marinus, and Praxis Precision Medicines.

In another report released today, Truist Financial also maintained a Hold rating on the stock with a $18.00 price target.

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SAGE Therapeutics (SAGE) Company Description:

SAGE Therapeutics, Inc. is a clinical stage biopharmaceutical company, which engages in the development and commercialization of novel medicines to treat life-altering central nervous system. Its programs include brexanolone, which is an acute interventional treatment for postpartum depression; and SAGE-217, an oral therapy for treatment of various CNS disorders. The company was founded by Steven Marc Paul and Douglas Covey in April 2010 and is headquartered in Cambridge, MA.