Sage stock popped Wednesday after its Biogen-partnered treatment for postpartum depression met every goal in a final-phase study.
Patients took the Biogen and Sage Therapeutics drug, dubbed zuranolone, for up to 45 days. By day 15, they showed a statistically significant reduction in symptoms of depression, measured by a 17-item scale. Patients also showed improvement on days three, 28 and 45 — secondary goals of the study.
"Reducing suffering from postpartum depression as rapidly and effectively as possible to restore mental health is of the utmost importance for moms and their babies," Dr. Kristina Deligiannidis said in a written statement. Deligiannidis led the study and is an associate professor at the Feinstein Institutes for Medical Research in Manhasset, N.Y.
On today's stock market, Sage stock jumped 9.5% to 34.24. Biogen stock was flat at 200.
Sage Stock: Multiple Depression Efforts
Biogen and Sage are actively submitting data to the Food and Drug Administration in the hopes of securing zuranolone approval in major depressive disorder. The companies also expect to request a second approval in postpartum depression in early 2023.
Needham analyst Ami Fadia said she expected positive results in postpartum depression.
"On positive data, we expect the stock to be up in the mid-to-high single digit range," she said in a preview of the study. "If data are negative, we don't expect much downside given the relatively smaller target market size for postpartum depression."
She has a buy rating and 85 price target on Sage stock.
One In Eight Women
Biogen and Sage note postpartum depression affects one in eight women who give birth. In the study, zuranolone led to an improvement in depressive symptoms in as quickly as three days compared to a placebo. The results were sustained out to 45 days.
"The positive outcomes of the (study called Skylark) are a critical step in our mission to help women suffering with postpartum depression find rapid relief from their depressive symptoms so they can get back to feeling like themselves," Sage Chief Executive Barry Green said in a written statement.
If approved, zuranolone would be the first oral treatment for postpartum depression, he said.
But Sage stock has trended down this year, reflecting a broader dip for biotech stocks. Shares are now consolidating with a buy point at 45.84, according to MarketSmith.com.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
