US-based Sage Therapeutics, Inc. (NASDAQ: SAGE) has announced that it received an unsolicited, nonbinding proposal from its partner Biogen Inc. (NASDAQ: BIIB) to acquire all of the outstanding shares of Sage Therapeutics not already owned by Biogen. The proposed acquisition price is USD 7.22 per share.
Sage Therapeutics’ Recent Performance
Sage Therapeutics has faced significant challenges in recent years, leading to a sharp decline in its share price due to regulatory and clinical setbacks. The company’s stock price has plummeted by over 90% in the past 18 months, partly due to the US FDA’s rejection of Zurzuvae for severe depression and the clinical failure of Dalazanemdor. Dalazanemdor failed to demonstrate efficacy in a study for Parkinson’s disease in April of last year, followed by disappointing results in Alzheimer’s disease and Huntington’s disease, leading to its discontinuation.
Biogen’s Proposal and Transaction Value
Biogen, a long-time partner and current shareholder of Sage Therapeutics, already owns 10.2% of the company’s shares. The proposed transaction is valued at approximately USD 469 million. This acquisition proposal comes as Biogen looks to strengthen its position in the biopharmaceutical sector by integrating Sage Therapeutics’ assets and capabilities.
Strategic Implications for Biogen
The proposed acquisition of Sage Therapeutics by Biogen represents a strategic move to expand Biogen’s portfolio and potentially leverage Sage’s research and development capabilities. By acquiring the remaining shares, Biogen aims to enhance its presence in the therapeutic areas where Sage has been active, despite the recent setbacks. This move could provide Biogen with new opportunities to develop and commercialize innovative treatments, aligning with its long-term strategic goals.-Fineline Info & Tech
