Amidst challenges for both companies, Biogen seeks to acquire the remaining shares of Sage Therapeutics. The offer comes after a series of setbacks for Sage, including the abandonment of several drug development programs.
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| Biogen, facing challenges with its Alzheimer's drug Leqembi, seeks to acquire its partner Sage Therapeutics. The offer comes as Sage navigates setbacks in its drug development pipeline. Image: Biogen |
Washington, USA --- January 11, 2025:
Biogen, the biotechnology company facing challenges with its Alzheimer's drug Leqembi, has made an unsolicited offer to acquire the remaining shares of Sage Therapeutics, its development partner, for $7.22 per share. This represents a 30% premium over Sage's closing price on Friday and values the company at approximately $442 million.
Sage Therapeutics, whose shares plummeted by 74.9% last year, has faced a series of setbacks, including the abandonment of its drug dalzanemdor after multiple clinical trial failures. The company has since shifted its focus to Zurzuvae, a postpartum depression drug developed in collaboration with Biogen.
Biogen, meanwhile, has been navigating slow sales for Leqembi, its Alzheimer's drug, due to concerns regarding cost, efficacy, and potential side effects.
This acquisition comes after a period of significant challenges for Sage. In July, the company also discontinued the development of another neurological disorder drug it was co-developing with Biogen.
Sage's board of directors will now carefully review Biogen's proposal to determine the best course of action for the company and its shareholders.