Sage Therapeutics Stock Eyes Best Day In 5 Years On Biogen’s Unsolicited Bid: Retail Piles In
The two companies have collaborated since 2020 on the depression drug Zurzuvae, approved in 2023 by the FDA for treating postpartum depression.

Sage Therapeutics Inc. stock surged over 37% on Monday, reaching its highest level since October, following confirmation of an unsolicited takeover bid from Biogen Inc.
The rally sets Sage on track for its most significant percentage gain since Jan. 7, 2019. The stock is also on course to snap a three-day losing streak amidst heavy trading and retail sentiment turning more optimistic.
Biogen has offered to acquire the remaining 90% of Sage, which it does not own, for $469 million, or $7.22 per share, representing a premium of over 30% from Sage’s Friday closing price.
Sage’s Board of Directors announced they would review the nonbinding proposal carefully to decide the best course of action for the company and its shareholders.
The two companies have collaborated since 2020 on the depression drug Zurzuvae, approved in 2023 by the FDA for treating postpartum depression.
Biogen, which currently shares revenue from Zurzuvae with Sage, argued in an SEC-filed letter that sole ownership would improve the drug’s rollout but notably omitted any interest in Sage’s broader pipeline, according to Barron’s.

Retail sentiment on Stocktwits turned more ‘bullish’ for Sage, with shares surpassing Biogen’s implied offer price, while sentiment for Biogen turned ‘extremely bullish’ as its stock edged higher.
Analysts expressed mixed views.
Mizuho analyst Uy Ear argued that Biogen’s bid undervalues Sage, suggesting the implied enterprise value is zero, as the company is set to end the fourth quarter with $500 million in net cash.
Sage held $569 million in cash and equivalents as of Sep. 30, 2024.
The offer also overlooks any valuation for Zurzuvae’s postpartum depression potential or Sage’s early-stage pipeline, including SAGE-319, the analyst added.
Meanwhile, Truist analysts noted Zurzuvae’s slow start but predicted a steady launch trajectory, saying “the hardest part of commercialization could be in the rear-view.”
Over the past year, Sage’s stock has declined more than 72%, while Biogen shares have dropped nearly 40%.
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