Sage Therapeutics (SAGE) Q1 2025 earnings summary

Executive summary

• ZURZUVAE, the first oral treatment for postpartum depression (PPD), drove revenue growth after its December 2023 U.S. launch, with over 3,000 prescriptions shipped in Q1 2025, up 22% sequentially; nearly 80% of prescriptions were from OBGYNs and over 70% of women received it as their first new PPD treatment.

• Strategic alternatives review is ongoing with no set timetable, including the rejection of Biogen's unsolicited acquisition proposal, which may impact the Biogen relationship.

• Priorities include expanding ZURZUVAE's reach, advancing the neurodevelopmental pipeline, and optimizing expenses.

• Sage discontinued ZULRESSO as of December 2024 and reprioritized its pipeline, focusing on ZURZUVAE and early-stage CNS candidates.

• Collaboration with Biogen is central to ZURZUVAE's commercialization, with both companies sharing U.S. profits and losses equally.

Financial highlights

• Q1 2025 total revenues were $14.1 million, up from $7.9 million in Q1 2024, driven by collaboration revenue from ZURZUVAE; collaboration revenue was $13.8 million in Q1 2025, up 21% sequentially.

• Net loss for Q1 2025 was $62.2 million, improved from $108.5 million in Q1 2024 and $95.8 million in Q4 2024.

• R&D expenses dropped to $22.8 million in Q1 2025 from $71.7 million in Q1 2024, reflecting restructuring and pipeline reprioritization.

• SG&A expenses rose to $57.6 million in Q1 2025 from $52.6 million in Q1 2024, mainly due to commercialization and legal costs.

• Cash, cash equivalents, and marketable securities totaled $424 million as of March 31, 2025.

Outlook and guidance

• Cash runway is expected to support operations through mid-2027, excluding potential milestone payments.

• Anticipates quarter-over-quarter revenue growth for ZURZUVAE throughout 2025, with topline growth driven by expanded sales force and marketing.

• Operating expenses are projected to decrease in 2025 due to 2024 restructuring and pipeline prioritization.

• ZURZUVAE is expected to be cash flow positive exiting 2026.

• Pipeline updates expected in mid-2025, including SAGE-324 for seizures in DEEs and SAGE-319 Phase 1 data by late 2025.