Sage Announces Plans to Reduce Workforce by One-Third and Optimize Drug Development Pipeline

Sage Announces Plans to Reduce Workforce by One-Third and Optimize Drug Development Pipeline

Sage Announces Plans to Reduce Workforce by One-Third and Optimize Drug Development Pipeline

Sage Therapeutics is undergoing another significant reorganization, with the announcement made Thursday regarding a strategic overhaul that will see roughly a third of its workforce laid off and a realignment of its early-stage drug development projects.

This latest wave of cuts will impact around 165 employees, primarily within research, as five senior officials, including the CFO, chief technical officer, and the company’s top attorney, will be leaving their positions.

Sage hopes to finalize the restructuring process by the conclusion of this quarter, aiming to enhance its operational longevity after facing multiple clinical and regulatory challenges that have diminished its prospects.

In the previous year, Sage and its collaborator Biogen received FDA approval for their postpartum depression treatment, Zurzuvae. However, despite this success, the FDA did not approve it for major depressive disorder (MDD) following mixed results in clinical trials. Consequently, this limited approval forced Sage to downsize by 40% of its workforce shortly after.

This year has been similarly challenging, with hurdles in advancing its other neurological treatment options. In April, a candidate being tested for Parkinson’s failed to show benefits over placebo in a Phase 2 trial. Recently, this same drug, dalzanemdor, did not perform well in a study involving mild dementia patients due to Alzheimer’s. The company has decided not to pursue further development for this indication, although it will continue testing it for Huntington’s disease.

This summer, a Sage drug licensed by Biogen failed in mid-stage trials focused on a prevalent type of tremor.

Moving forward, Sage intends to prioritize the launch of Zurzuvae, which made its debut in the U.S. market at the end of the previous year. Sales have seen gradual growth, reaching approximately million during the second quarter. However, the company noted a significant increase in prescriptions, with over a 60% rise in the second quarter compared to the first.

On the research side, Sage expressed its commitment to “focus its pipeline development efforts” as it awaits results from the dalzanemdor study related to Huntington’s disease.