Sage Therapeutics sinks over 50% after Phase 3 depression failure

Shares of Sage Therapeutics are losing more than half their value after the company said its Phase 3 Study evaluating the effect of SAGE-217 on depressive symptoms in adults with major depressive disorder did not meet its primary endpoint of a statistically significant reduction from baseline compared to placebo in the 17-item Hamilton Rating Scale for Depression total score at day 15. SAGE-217 was associated with a mean reduction of 12.6 in HAM-D total score compared to 11.2 for placebo. The SAGE-217 development program includes five other pivotal studies, one in major depressive disorder and one in postpartum depression, and three of which are ongoing. "This study did not meet the primary endpoint. With that, the data are supportive of the activity of SAGE-217 in MDD given the statistical significance at the majority of timepoints, and in relevant populations," said Jeff Jonas, CEO at Sage. "Notwithstanding the finding on the primary endpoint, the drug displays good activity on most measures. We understand that drug development is an iterative process. In this study, we've gathered new data on SAGE-217, data we believe support our hypothesis that SAGE-217 has a unique profile with the potential for rapid and robust onset with durable effect." Shares of Sage Therapeutics are down 55%, or $82.21, to $67.00 in premarket trading.