Sage Therapeutics, Inc. (Nasdaq: SAGE) has unveiled a strategic reorganization initiative aimed at prioritizing the commercialization of ZURZUVAE® for postpartum depression while sharpening its focus on pipeline development, including the upcoming clinical study for dalzanemdor in Huntington’s Disease, slated for later this year. The restructuring is designed to bolster the company’s financial standing, extend its cash runway, and position Sage for long-term growth in the highly competitive biopharmaceutical industry.
Reorganization Details
The reorganization plan, expected to be substantially completed by the end of Q4 2024, involves significant changes to streamline operations and concentrate resources on Sage’s most promising areas. Key aspects include:
- Workforce Reduction: The company plans to reduce its workforce by approximately 33%, affecting over 165 employees, including around 55% of its research and development staff. This move is intended to right-size the organization and align staffing with current business priorities.
- Pipeline Prioritization: Sage will focus on key pipeline programs, with an emphasis on advancing ZURZUVAE and other promising assets. The company will strategically prioritize its early-stage pipeline projects to optimize the use of its resources.
- Leadership Changes: Several executive roles will be restructured, with departures and new responsibilities for current leaders.
Barry Greene, Chief Executive Officer of Sage Therapeutics, acknowledged the challenges of these decisions, stating, “This reorganization is difficult but necessary to provide us the flexibility to execute on immediate priorities and lay the foundation for long-term growth and value creation. We believe it will enable continued focused investment in the launch of ZURZUVAE for women with postpartum depression, while also accelerating the development of our prioritized portfolio.” Greene extended his gratitude to departing employees for their contributions and commitment to Sage’s mission.
Leadership Team Restructuring
As part of the reorganization, several senior executives will depart Sage, including:
- Anne Marie Cook, Senior Vice President, General Counsel
- Kimi Iguchi, Chief Financial Officer
- Matt Lasmanis, Chief Technology and Innovation Officer
- Heinrich Schlieker, Ph.D., Senior Vice President of Technical Operations
- Amy Schacterle, Ph.D., Senior Vice President of R&D Strategy and Business Management
Key leadership appointments include:
- Chris Benecchi, Chief Operating Officer: Benecchi will assume an expanded role overseeing Finance, Information Technology, and Technical Operations, in addition to continuing his responsibilities in Business Development, Medical Affairs, and Commercial operations.
- Greg Shiferman, Senior Vice President, General Counsel: Shiferman’s promotion aligns with the company’s strategy to streamline operations while strengthening legal oversight.
- Vanessa Procter, Senior Vice President, Corporate Affairs: Procter’s expanded role will encompass oversight of Investor Relations, Corporate Communications, Government Affairs, and Patient Advocacy.
Financial Implications and Strategic Outlook
The company anticipates incurring a one-time, non-recurring charge of approximately $26-28 million related to the reorganization, predominantly recorded in Q4 2024. Sage expects the restructuring to significantly extend its cash runway, supporting the ongoing commercialization of ZURZUVAE and other strategic initiatives. The company plans to update its cash runway guidance in the near future to reflect the impact of these changes.
ZURZUVAE Safety and Usage Information
ZURZUVAE (zuranolone), a neuroactive steroid and GABAA receptor modulator, is approved for the treatment of postpartum depression in adults. It is important for patients and healthcare providers to be aware of potential side effects, including drowsiness, dizziness, and risk of falls. Patients are advised to avoid driving or operating heavy machinery for at least 12 hours after taking each dose due to possible impairment. ZURZUVAE is classified as a controlled substance (C-IV) due to the risk of abuse or dependence.
About Sage Therapeutics
Founded in 2010 and headquartered in Cambridge, Massachusetts, Sage Therapeutics is a biopharmaceutical company dedicated to pioneering brain health solutions to improve patient outcomes. The company has successfully developed the first two FDA-approved treatments specifically indicated for postpartum depression and continues to expand its pipeline with a focus on unmet needs in the field of brain health. Sage’s mission is to deliver life-changing medicines to address critical conditions, thereby enabling every individual to thrive.
Looking Ahead
With this strategic reorganization, Sage is taking decisive steps to focus on the most impactful areas of its business while enhancing financial stability. As it prepares for upcoming clinical milestones and continues the ZURZUVAE launch, the company is positioning itself to lead in the development of innovative treatments for complex brain health disorders.
