SAGE Therapeutics: Hold Rating Amidst Mixed Financial and Market Signals

Needham analyst Ami Fadia has maintained their neutral stance on SAGE stock, giving a Hold rating on April 18.

Ami Fadia has given his Hold rating due to a combination of factors surrounding SAGE Therapeutics’ financial performance and market dynamics. The first quarter of 2024 showed that the sales of Zurzuvae beat expectations with approximately 700 total prescriptions shipped, far exceeding the tracked prescriptions by IQVIA. Despite this strong performance in product shipment, the earnings per share (EPS) for the first quarter were marginally below consensus predictions, primarily due to increased operating expenses, specifically in research and development.

Furthermore, the coverage of Zurzuvae by payors is a positive sign, as over 65% of all commercial lives are now covered, with two out of three national PBMs having developed policies for the drug and minimal complex prior authorizations or step therapies required. However, Fadia’s Hold rating suggests that while there are certainly positive aspects to SAGE’s current situation, there may also be concerns or uncertainties that prevent a more bullish rating, such as the potential for increased competition, market saturation, or other financial challenges that could affect SAGE’s future performance.

According to TipRanks, Fadia is a 3-star analyst with an average return of 2.4% and a 42.81% success rate. Fadia covers the Healthcare sector, focusing on stocks such as Immuneering, Intra-Cellular Therapies, and ACADIA Pharmaceuticals.

In another report released on April 18, Oppenheimer also assigned a Hold rating to the stock with a $17.00 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.