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on friday, Sage Therapeutics Inc. (NASDAQ:SAVE) confirmed it Biogen Inc. (NASDAQ:BIB) submitted an unsolicited, non-binding proposal to acquire all of the outstanding shares of Sage Therapeutics not already owned by Biogen for $7.22 per share.
The Sage Board of Directors will carefully review and evaluate Biogen’s proposal.
In November 2020, Biogen and Sage Therapeutics executed a collaboration and global license agreement to jointly develop and commercialize zuranolone (SAGE-217) for major depressive disorder (MDD), postpartum depression (PPD), and other psychiatric disorders and SAGE-324 for essential tremor. and other neurological disorders.
The treat it included an initial payment of $875 million and an equity investment of $650 million. Sage was also eligible to receive up to approximately $1.6 billion in potential milestone payments.
Over the past five years, Sage shares have fallen 90%.
In October of last year, Sage Therapeutics announced a strategic reorganization of its business operations to support the ongoing launch of Zurzuvae (zuranolone) in postpartum depression.
The company said the reorganization was intended to strengthen Sage’s balance sheet, expand its cash runway and position the company for long-term growth potential.
The company’s layoff affected more than 165 employees (approximately 33% of its total workforce and approximately 55% of its R&D workforce), including changes to the leadership team.
In September, Biogen terminated its rights under the collaboration and license agreement with Sage, which was specific to the SAGE-324 program.
Price action: SAGE shares are up 37.3% at $7.62, and BIIB shares are down 0.25% at $148.45 at last check on Monday.
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This article Why Is Depression-Focused Sage Therapeutics Stock Rising Higher on Monday? originally appeared Benzinga.com
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