Sage Therapeutics Inc.'s (SAGE, Financial) share price increased 70% at market open Dec. 7 as the company announced strong top-line results from its Phase 2 clinical trial of SAGE-217, a treatment for moderate to severe major depressive disorder (MDD) in adults.
Background
Sage Therapeutics developed SAGE-217, a “next-generation positive allosteric modulator” used to treat patients with MDD and other mood disorders, according to the company’s press release. The company reported positive top-line results from the Phase 2 trial, including a statistically significant mean reduction in depression levels: according to the study, patients who received SAGE-217 reduced their depression level by seven points more than patients who received a placebo.
CEO Jeff Jonas, M.D., said the encouraging results allowed the company to advance the SAGE-217 program further. The U.S. Food and Drug Administration granted a “Fast Track Designation” to the company’s treatment, suggesting SAGE-217 has potential to generate good revenue growth for Sage Therapeutics. Chief Medical Officer Steve Kanes further underscored Sage’s mission to change “the treatment landscape for MDD” and offer one of the first methods of pharmacologic treatment of depression in more than two decades.
Gurus boost position in company
Several gurus invested in Sage over the past six months as the company offers a positive business outlook. Point72 manager Steven Cohen (Trades, Portfolio) added 53,350 shares for an average price of $78.82 per share. Based on GuruFocus estimates, Cohen has gained approximately 80% on the stock.
Paul Tudor Jones (Trades, Portfolio) and Ron Baron (Trades, Portfolio) also boosted their positions in Sage Therapeutics.
Disclosure: No postions.
