Pgiam/iStock via Getty Images Sage Therapeutics ( NASDAQ: SAGE ) traded lower on Thursday as J.P. Morgan downgraded the stock, citing concerns over its pipeline after SAGE-324, its experimental therapy for essential tremor (ET), failed in a mid-stage trial.
J.P. Morgan analyst Anupam Rama argued that Sage ( SAGE ) looked undervalued based on the prospects of its Biogen ( BIIB )- partnered depression therapy Zurzuvae alone.
However, “the market will take time to develop,” he added, noting that Zurzuvae, launched in late 2023 as the first FDA-approved oral treatment for postpartum depression (PPD) in adults, is still in the early stages of its commercial rollout. The downgrade comes after Sage ( SAGE ) and Biogen ( BIIB ) announced Wednesday that their KINETIC 2 trial for SAGE-324 in ET failed, forcing them to halt further clinical development of the candidate for the condition. In the wake of that decision, J.
P. Morgan removed SAGE-324 from its model for SAGE and cut its price target to $12 per share for 2025 December from $18 per share for 2024 December. More on Sage Therapeutics Sage Therapeutics Stock: Remains A Hold On Upcoming Essential Tremor Treatment Data Biogen, Sage discontinue neuro candidate after mid-stage setback Sage spikes after mid-stage win for Huntington's disease therapy Seeking Alpha’s Quant Rating on Sage Therapeutics Historical earnings data for Sage Therapeutics.
