Biogen Inc. (NASDAQ: BIIB) and Sage Therapeutics, Inc. (NASDAQ: SAGE) have collaborated to develop and commercialize zuranolone and SAGE-324.
Zuranolone is used to treat postpartum depression, major depressive disorder and other psychiatric disorders while SAGE-324 is used to treat neurological disorders such as essential tremor. “We are excited about the potential to bring together Biogen’s leading capabilities in neuroscience with Sage’s deep expertise in psychiatry,” said Michel Vounatsos, Biogen’s Chief Executive Officer. “Major depressive disorder affects approximately 17 million people in the U.S. alone, and is a common co-morbidity of multiple neurological disorders in Biogen’s core therapeutic areas. There is a tremendous unmet medical need in depression, and we are optimistic about the potential for zuranolone to help transform the treatment of depression and address the stigma often associated with chronic use of antidepressants.”
“With the recent and pending data outputs for zuranolone and SAGE-324, the timing is right for a collaboration between two like-minded companies committed to patients and driven by a passion for neuroscience and brain health,” said Mike Cloonan, Chief Operating Officer at Sage Therapeutics. “Through this collaboration, Sage and Biogen have the potential to build something greater together than either could have done alone. We will leverage each other’s existing expertise while continuing to build new capabilities in our efforts to create paradigm shifts in the treatment of depression, PPD and essential tremor — disorders that have gone too long with few treatment innovations. Additionally, the cash from the collaboration is expected to enable Sage to accelerate and expand value potential for its pipeline and will enhance Sage’s strategic, financial and operational flexibility as well as strengthening our multi-franchise approach.”
The collaboration under the terms of agreement, Sage will receive USD 1.525 Billion in cash which is comprised of an upfront payment of USD 875 Million and USD 650 Million equity investment from the purchase of 6.2 million newly issued shares of Sage common stock at a value of USD 104.14 per share.