Sage Therapeutics (NASDAQ:SAGE) stock isn’t doing the best on Monday after the U.S. Food and Drug Administration (FDA) weighed in on the biopharmaceutical company’s depression drug zuranolone.
According to Sage Therapeutics, it’s unhappy with the Complete Response Letter received from the FDA concerning this drug. The FDA claims there isn’t enough evidence to support zuranolone as a treatment for MDD.
Barry Greene, CEO of Sage Therapeutics, said the following about the FDA response’s effect on the company:
“While we believe we are well capitalized, given the impact of the CRL for zuranolone in MDD on our plans, we are currently evaluating resource allocation, including pipeline prioritization and a workforce reorganization with a goal of extending our cash runway.”
Q2 Earnings Drag SAGE Stock Down
Also not helping Sage Therapeutics is its latest earnings report. The company reported EPS of -$2.68 alongside revenue of $2.47 million. Both of these are worse than Wall Street’s estimates of -$2.54 per share and revenue of $2.91 million for the quarter.
To go along with this, SAGE stock was downgraded by Wedbush following the FDA response and Q2 results. This dropped the stock from an “outperform” rating to a “neutral” rating. Additionally, the firm cut its price target from $51 per share to $22 per share.
With all of this news comes some 2 million shares of SAGE stock changing hands. That’s already above its daily average trading volume of 856,000 shares. It also has the stock down 47.8% as of Monday morning.
Investors looking for even more of the most recent stock market news will want to keep reading.
We’ve got all of the latest stock market coverage traders need to know about on Monday! Among that is what has shares of Yellow (NASDAQ:YELL), Tivic Health Systems (NASDAQ:TIVC) and AgriFORCE Growing Systems (NASDAQ:AGRI) stock moving today. All of that news is ready to go at the links below!
More Monday Stock Market News
- Why Is Yellow (YELL) Stock Down 42% Today?
- Why Is Tivic Health Systems (TIVC) Stock Down 44% Today?
- Why Is AgriFORCE Growing Systems (AGRI) Stock Up 67% Today?
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
