NEW YORK, NY / ACCESSWIRE / November 10, 2017 / Shares of Sage Therapeutics stole the show on Thursday, with gains of over 50% at the close. The company presented positive data with analysts responding very optimistically. Shares of Aralez also closed higher after beating in its third-quarter report.
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Aralez Pharmaceuticals Inc.
Sage Therapeutics, Inc.
Aralez Pharmaceuticals Inc. shares closed up 4.37% on Thursday with nearly 1.9 million shares traded. Trading volume was more than twice as high as usual yesterday after the company reported its third quarter financial results. For the period, Aralez reported a loss of $24.4 million, or a loss of 37 cents per share. Despite the loss, it was narrower than what analysts had been expecting at a loss of 39 cents a share. Revenue for the specialty pharmaceutical company was $24.3 million. The company has forecast full-year revenue of $95 million to $105 million. CEO Adrian Adams commented, "Our performance in the third quarter demonstrates the strength of our underlying business, with growth in the U.S. and Canada, and puts us on the path to profitability as reflected by the achievement of positive quarterly Adjusted EBITDA for the first time as Aralez."
"We are delighted with the evolution of Zontivity ®, the improved outlook for the Toprol-XL ® franchise in the U.S. and the continued strong performance of the Canadian business. As a result of this performance, we updated our 2017 financial guidance and now expect full-year net revenue to be in the range of $95 million to $105 million," Adams continued.
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Sage Therapeutics, Inc. share were on fire in Thursday trading, closing the day up 54.25%. Shares hit a new record high of $96.99 during intra-day trading after the company revealed strong data in two postpartum depression trials. RBC analyst Brian Abrahams, even said that the company could have a $600 million drug on its hands. No wonder traders were celebrating. According to Danielle Brill, a Needham analyst, the drug brexanolone could have approval and launch in the second half of next year. Brill wrote, "We ultimately expect oral '217 to replace brexanolone for (postpartum depression) and view outcome as a positive for '217 program as a mechanism is now validated." Brill wasn't the only analyst optimistic about the results. Paul Matteis of Leerink commented, "The fact the placebo effect was larger in Phase 3 — and especially for an infusion where there was likely a decent amount of expectation bias/excitement ahead of the trial — is not at all unprecedented in (central nervous system disorders)." He upped his price target on the stock from $85 to $123.
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