Sage Therapeutics To Reorganize Business Operations, Pipeline Priorities; To Slash 40% Workforce
(RTTNews) - Sage Therapeutics, Inc. (SAGE) announced on Thursday plans to reorganize its business operations and pipeline priorities to support goals for long-term business growth.
These include the planned commercial launch of ZURZUVAE for women with postpartum depression (PPD) in the fourth quarter of 2023 and expected data read-outs for SAGE-718 and SAGE-324 in 2024.
The company will also implement an approximately 40 percent workforce reduction to support its focus on agile execution of business priorities. This will help right-size the organization and align its leadership team structure to scale with pipeline and commercial priorities.
The reorganization plan is intended to enable Sage to strengthen its balance sheet. The company expects annualized net savings of approximately $240 million, of which 60% is related to R&D, to extend cash runway into 2026.
It also expects a non-recurring charge of approximately $36 million to $38 million associated with the reorganization, primarily incurred in the third quarter of 2023.
Additionally, there is the potential to earn a milestone payment of $75 million from Biogen related to the first commercial sale of ZURZUVAE for the treatment of PPD.
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