Jeff Jonas, Sage

Blast­ed by PhI­II fail­ure, a strug­gling Sage ax­es 340 staffers and bunkers down to sur­vive the storm

Four months af­ter the crit­i­cal fail­ure of a close­ly-watched Phase III study, Sage Ther­a­peu­tics is bring­ing out the ax to ex­e­cute a ma­jor re­struc­tur­ing.

Out go 340 staffers, slight­ly more than half of the work­force at the biotech. Most of those job cuts are be­ing fo­cused on their Zul­res­so (brex­anolone) CIV in­jec­tion com­mer­cial op­er­a­tion and “re­lat­ed SG&A sup­port func­tions.”

The com­pa­ny $SAGE is cir­cling the wag­ons around ex­ist­ing sites where they dose Zul­res­so, aban­don­ing any plans to ex­pand while es­sen­tial­ly rel­e­gat­ing the ther­a­py to nov­el­ty sta­tus. Mizuho re­duced its peak sales es­ti­mate to $20 mil­lion. And Sage is dou­bling down on their failed de­pres­sion drug, where the re­al up­side lay.

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