Sage Therapeutics to cut about 188 jobs after depression drug setback

(Reuters) -Sage Therapeutics said on Thursday it plans to lay off about 188 people, or about 40% of its workforce, weeks after the U.S. health regulator declined to approve its drug to treat major depressive disorder.

The U.S. Food and Drug Administration (FDA) in early August approved the company and partner Biogen's pill for postpartum depression (PDD), but rejected it as a treatment for clinical depression, which is a much larger market.

Sage said the job cuts, which are part of a reorganization plan, will help it launch the drug for women with PDD and also position the company for long-term growth.

As part of the reorganization, Sage said its Chief Scientific Officer Al Robichaud will leave the company and will be replaced by Mark Quirk, senior vice president of discovery research.

(Reporting by Christy Santhosh in Bengaluru; Editing by Shilpi Majumdar and Shounak Dasgupta)