As of Apr. 22, Sage had 338 full-time employees, all of whom will be laid off effective Aug. 22. The layoffs were announced a few weeks after Maryland’s Supernus Pharmaceuticals acquired Sage for up to $795 million.
Not two weeks after being acquired, Sage Therapeutics has let go of all of its remaining workforce—338 employees.
The layoffs will take effect on Aug. 22 and will impact staff at Sage’s site in Cambridge, Massachusetts, according to a WARN notice posted Friday. Sage had 338 full-time employees as of Apr. 22, according to the company’s most recent quarterly report. 98 members of its staff were focused on R&D, while the rest worked in sales and general administrative roles.
The workforce reduction comes a few weeks after Sage came to an acquisition agreement with Supernus Pharmaceuticals. The Maryland-based company offered to buy Sage for $591 million, with a contingent value right that could swell the overall deal value to $795 million based on certain milestones. Sage and Supernus expect to close the transaction in the third quarter.
The Supernus agreement follows a takeover offer from Biogen in January, proposing to buy Sage for $469 million. Biogen and Sage are long-time partners, collaborating on the development of Zurzuvae, which was ultimately approved in 2023 for postpartum depression (PPD). But the FDA declined an indication in the larger for major depressive disorder (MDD) population, leaving Sage with a truncated product to market.
Sage did not appreciate Biogen’s advances, arguing that the offer “significantly undervalues Sage,” according to a court document in January.
After the FDA rejected the MDD indication for Zurzuvae, Sage’s path has continued to be bumpy. In April 2024, another Sage asset, the NMDA receptor modulator dalzanemdor, failed a Phase II study in Parkinson’s disease, forcing the biotech to discontinue the trial.
Dalzanemdor then hit a disastrous losing streak in the following months, failing mid-stage trials in both Alzheimer’s disease and Huntington’s disease. Sage ultimately axed the asset. In October 2024, amid the clinical turmoil, Sage slashed its headcount by 33%, an effort that the company at the time said would help support the ongoing PPD launch of Zurzuvae and extend its cash runway.
From a high of $91 in January 2021, Sage shares have fallen 90%. The biotech is now trading at around $9.15 per share.
