Sage Therapeutics Rejects Biogen’s $469M Offer, Citing Undervaluation

Sage Therapeutics announced its board's unanimous rejection of Biogen's $469 million acquisition offer, stating the proposal "significantly undervalues" the company and does not align with shareholder interests. Biogen (NASDAQ:BIIB), which holds a 10.2% stake in Sage, offered $7.22 per share for all outstanding Sage shares. Following the announcement, Sage shares rose 5.3% to $7.48 in early trading.

Sage has initiated a strategic alternatives review but emphasized no specific timeline for the process, adding that updates will only be shared if necessary. The company’s shares suffered a sharp 74.9% decline in 2023 after discontinuing its experimental drug dalzanemdor due to failed trials.

Amid challenges, Sage implemented a significant reorganization last October, cutting over 165 jobs and announcing the departure of Chief Financial Officer Kimi Iguchi. The Massachusetts-based company has since shifted focus to launching Zurzuvae, its FDA-approved postpartum depression pill co-developed with Biogen in 2023. Sage also ended the development of another neurological drug with Biogen in July.

Biogen’s proposal reflects growing interest in expanding its footprint within the neurological and mental health treatment space, but Sage’s decision underscores its commitment to maximizing shareholder value and exploring broader opportunities.

As Sage evaluates its options, investors remain attentive to potential updates and the company’s strategic trajectory following its recent setbacks and realignment efforts.