Sage sug­gests job and pipeline cuts af­ter FDA re­jec­tion of ma­jor de­pres­sion pill

Sage Ther­a­peu­tics an­nounced plans for a “pipeline pri­or­i­ti­za­tion and a work­force re­or­ga­ni­za­tion” on Mon­day morn­ing af­ter the FDA re­ject­ed its ex­per­i­men­tal pill for ma­jor de­pres­sive dis­or­der in a sur­prise move on Fri­day evening.

The com­pa­ny’s stock was down 50% in trad­ing on Mon­day morn­ing, putting its mar­ket cap­i­tal­iza­tion close to the com­pa­ny’s cash lev­els.

Ex­ec­u­tives at the Cam­bridge, MA-based com­pa­ny ap­peared blind­sided by the FDA’s de­ci­sion in re­marks made dur­ing the sec­ond-quar­ter earn­ings call on Mon­day. “We found out late in the re­view cy­cle about the FDA’s view on the ap­proval abil­i­ty of MDD,” Sage CEO Bar­ry Greene said.

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