Sage Therapeutics Rejects Biogen’s Acquisition Offer
In a bold move, Sage Therapeutics’ board has unanimously turned down Biogen’s $469 million acquisition proposal, citing that it grossly undervalues the company and fails to serve the best interests of its shareholders. The offer, which would have seen Biogen acquire all outstanding Sage shares it doesn’t already own for $7.22 per share, has been deemed insufficient.
A Strategic Review is Underway
In response to the rejected offer, Sage has initiated a process to explore strategic alternatives, although no timeline has been set for the review. The company has stated that it will only provide updates when necessary, leaving investors to speculate on the next move.
Sage’s Recent Struggles
The past year has been tumultuous for Sage, with its shares plummeting 74.9% after the discontinuation of its experimental drug dalzanemdor due to trial failures. In an effort to refocus, the Massachusetts-based company announced the departure of Chief Financial Officer Kimi Iguchi and laid off over 165 employees in October.
A Glimmer of Hope
Despite the setbacks, Sage has found success with its postpartum depression pill, Zurzuvae, which was approved by the U.S. Food and Drug Administration in 2023. Co-developed with Biogen, Zurzuvae has provided a much-needed boost to the company’s prospects.
A Complex Relationship
Sage’s relationship with Biogen is complex, to say the least. The two companies have collaborated on several projects, including Zurzuvae, but have also halted development on another neurological drug in July. Biogen currently holds a 10.2% stake in Sage, making its acquisition offer all the more intriguing.
What’s Next for Sage?
As Sage navigates this critical period, investors will be watching closely to see how the company responds to Biogen’s rejected offer. With shares currently trading at $7.48, up 5.3% in early trading, it remains to be seen what the future holds for this embattled biotech firm.
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