A securities class action has been filed in the USDC — S.D.N.Y. against Sage Therapeutics, Inc. (SAGE) (“Sage” or the “Company”), on behalf of all persons or entities that purchased or otherwise acquired Sage securities between April 12, 2021 and July 23, 2024, both dates inclusive (the “Class Period”).
Sage is a biopharmaceutical company that develops and commercializes brain health medicines. The Company is developing, inter alia, zuranolone (SAGE-217/BIIB125), a neuroactive steroid for the treatment of postpartum depression (“PPD”) and major depressive disorder (“MDD”), in collaboration with Biogen Inc. (“Biogen”); SAGE-718 (dalzanemdor), an oral, oxysterol-based positive allosteric modulator of the N-methyl-D-aspartate (“NMDA”) receptor for the treatment of, inter alia, mild cognitive impairment (“MCI”) due to Parkinson’s Disease (“PD”); and SAGE-324 (BIIB124), an oral investigational drug for the treatment of essential tremor (“ET”), also in collaboration with Biogen.
The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that:
(i) zuranolone was less effective in treating MDD than Defendants had led investors to believe;
(ii) accordingly, the FDA was unlikely to approve the Zuranolone NDA for the treatment of MDD in its present form, and zuranolone’s clinical results for MDD, as well as its overall regulatory and commercial prospects, were overstated;
(iii) SAGE-718 was less effective in treating MCI due to PD than Defendants had led investors to believe;
(iv) accordingly, SAGE-718’s clinical, regulatory, and commercial prospects as a treatment for MCI due to PD were overstated;
(v) SAGE-324 was less effective in treating ET than Defendants had led investors to believe;
(vi) accordingly, SAGE-324’s clinical, regulatory, and commercial prospects as a treatment for ET were overstated; and
(vii) as a result of all the foregoing, the Company’s public statements were materially false and misleading at all relevant times, thereby harming investors.
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