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SAN FRANCISCO, Feb. 27, 2020 (GLOBE NEWSWIRE) -- Hagens Berman urges Sage Therapeutics, Inc. (SAGE) investors with losses in excess of $100,000 to submit their losses now to learn if they qualify to recover compensable damages.
Sage Therapeutics, Inc. (SAGE) Investigation:
The investigation centers on whether Sage misrepresented its flagship drugs, Zulresso and Zuranolone (SAGE-217).
Zulresso, Sage’s lead product, was approved by the FDA in March 2019 to treat postpartum depression (PPD) and made commercially available in June 2019. In past quarters, Sage said it would take only 6-9 months for sites administering Zulresso to become treatment-ready.
Zuranolone, Sage’s next generation drug, purportedly treats major depression disorder (MDD). The Company has characterized the drug as “a breakthrough therapy product” since it was designed to affect the neurochemistry of patients faster than conventional depression treatments, while purportedly remaining just as potent.
On Dec. 5, 2019, Sage shocked investors when it announced that Zuranolone missed the mark in its pivotal Phase 3 MOUNTAIN trial. Specifically, the Company disclosed that the drug fared no better than a placebo at relieving depressive symptoms in adults with MDD at day 15. On this news, Sage’s shares plunged nearly 60%, wiping out over $4.6 billion in market capitalization in a single trading day.
Then, on Feb. 27, 2020, the Company announced disappointing Q4 2019 financial results, reporting $1.96 million in revenue from Zulresso sales, only half the revenue analysts expected. The Company also disclosed that most sites administering the drug will take over 9 months to become treatment-ready, and for some large hospitals and healthcare systems more than a year. Moreover, the Company confirmed the suspension of clinical trials of Zuranolone, claiming it needed time to speak with the FDA and weigh potential amendments to the Phase 3 trials. While the Company said it intended to test Zuranolone in higher doses in hopes of getting better results, when questioned by analysts, Sage’s officials admitted that they had no real data to prove this would work. On this news, Sage’s shares dropped over 18%, wiping another $600 million in shareholder equity.
“We’re focused on recovering investors’ losses and whether Sage concealed critical facts from investors regarding its flagship drugs,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you purchased shares of Sage and suffered significant losses, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Sage should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email SAGE@hbsslaw.com.
About Hagens Berman
Hagens Berman is a national law firm with nine offices in eight cities around the country and eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
Reed Kathrein, 844-916-0895