Stifel adds Sage to Select List, says SAGE-217 will generate billions
Stifel analyst Paul Matteis says his meeting with management of Sage Therapeutics reaffirmed his view that, "though the precise event path is uncertain," the most likely eventual outcome remains that SAGE-217 will ultimately get approved and generate billions in sales. Sage continues to comb through the failed MOUNTAIN study data, and management's view is that a coalescence of factors drove the miss at day 15, Matteis tells investors in a research note. The analyst thinks Sage, after talking with the FDA, will and should initiate additional studies to bolster the SAGE-217 dataset. Despite an "undeniably riskier" story, Matteis added Sage Therapeutics to the Stifel Select List "under the premise that we're one positive trial away from the bull case being back on track." The analyst has a Buy rating on the shares with a $173 price target. The stock closed Friday up 28c to $72.87.