NASDAQ$SAGE

Sage Therapeutics Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Sage reported financial results and business highlights, focusing on pipeline progress and clinical trial initiations.

Sage Therapeutics reported $1.1 million in net revenue from ZULRESSO sales for the second quarter of 2020. The company is advancing its pipeline with multiple clinical trials across its depression and neurology franchises. They are initiating a Phase 3 study in patients with advanced COVID-19 related acute respiratory distress syndrome (ARDS).

  • Initiated enrollment and dosing in Phase 3 SKYLARK and WATERFALL Studies with zuranolone 50 mg.
  • Initiated dosing in the 50 mg cohort of the open-label Phase 3 SHORELINE Study.
  • Initiated dosing in the Phase 2 KINETIC Study evaluating SAGE-324 in patients with essential tremor.
  • Zuranolone was generally well-tolerated and showed a similar safety profile as seen in earlier studies.

Headline financials

Total Revenue

$1.09M

Previous: $873K+24.7%
EPS (adj)

-$2.08

Previous: -$3.28+36.6%
Capital Expenditures

$70K

No prior period
Free Cash Flow

-$119M

No prior period
Net Income

-$136M

No prior period
Operating Income

-$139M

No prior period
Gross Profit

$979K

No prior period
Cash & Equivalents

$759M

No prior period
Total Assets

$827M

No prior period
Stock-Based Comp

$24M

No prior period

Revenue & EPS history

Sage · Revenue · Quarterly

$1.09M

Q2 2020+24.7%vs Q2 2019
Beat estimate in 3 of 14 quarters(21%)
ActualEstimate

Revenue by segment

Sage · $1.64M total across 1 segment · Q4 2021

  • ZULRESSO Net Revenue
    $1.64M

Forward guidance

Sage anticipates a cash balance of at least $550 million at end of 2020, which the Company anticipates will support operations into 2022 based on current operating plans. The Company does not plan to provide revenue guidance for the balance of 2020.

Tailwinds

  • Initiate dosing in Phase 3 CORAL (MDD-305) Study evaluating a two-week course of zuranolone 50 mg, when co-initiated with an open-label anti-depressant, as an acute rapid response therapy in patients with MDD.
  • Report topline data from Phase 3 SHORELINE (MDD-303 – 30 mg) Study.
  • Initiate Phase 3 study in patients with advanced COVID-19 related acute respiratory distress syndrome (ARDS).
  • Report topline data from Phase 2a study in patients with Parkinson’s disease cognitive dysfunction.
  • Report topline data from Phase 2 placebo-controlled study in ET (4Q 2020/1Q 2021).

Headwinds

  • The Company expects the significant adverse impact of the pandemic on ZULRESSO revenues to continue.
  • Concerns about exposure to the virus have also caused a significant reduction in the number of women with PPD seeking treatment with ZULRESSO and in physicians willing to prescribe it.
  • Revenue in the second quarter of 2020 from sales of ZULRESSO was $1.1 million, compared to $2.3 million in the first quarter of 2020.
  • The rapid spread of COVID-19 in the U.S. resulted in multiple sites of care pausing treatment of new patients with ZULRESSO during the quarter.
  • The Company does not plan to provide revenue guidance for the balance of 2020.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 15 quarterly earnings reports

Historical avg

-2.8%

Avg return

Earnings day

-5.3%

Avg return

5 days after

-6.4%

Avg return

30 days after

43%

19 / 44 earnings

Positive

+12.4%

Q4 2021

Best reaction

-47.6%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025
Q3 2025
Q2 2025
Q1 2025-4.1%-5.7%-15.0%
Q4 2024-0.4%-0.8%+7.2%
Q3 2024-24.6%-29.1%-35.2%
Q2 2024-9.6%-17.2%-22.1%
Q1 2024-2.2%-0.6%-19.4%
Q4 2023+10.4%+1.3%-13.2%
Q3 2023-10.2%-17.1%+1.3%
Q2 2023-47.6%-39.7%-42.8%
Q1 2023-2.4%+0.9%+1.9%
Q4 2022+0.9%-5.2%-5.2%
Q3 2022-5.0%+5.0%+16.5%
Q2 2022+4.6%+21.6%+12.8%
Q1 2022+4.9%-12.2%+12.6%
Q4 2021+12.4%+12.3%-1.0%
Q3 2021+11.2%+6.4%-9.7%
Q2 2021-4.0%-5.1%+9.0%
Q1 2021-10.3%
Q4 2020+4.0%
Q3 2020-0.6%
Q2 2020+1.3%
Q1 2020-4.1%
Q4 2019-26.2%
Q3 2019-0.2%
Q2 2019+7.4%
Q1 2019+0.3%
Q4 2018-8.2%
Q3 2018+3.0%
Q2 2018-0.7%
Q1 2018+1.2%
Q4 2017+0.2%
Q3 2017+11.7%
Q2 2017+7.7%
Q1 2017-2.7%
Q4 2016+0.6%
Q3 2016+0.5%
Q2 2016-13.3%
Q1 2016-3.8%
Q4 2015-4.8%
Q3 2015-4.6%
Q2 2015-6.5%
Q1 2015+2.0%
Q4 2014+2.1%
Q3 2014-5.2%
Q2 2014-7.8%
Q4 2013
Q3 2013
Q2 2013
Q1 2013

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