Sage takeout bid implies zero enterprise value, says Mizuho

Mizuho analyst Uy Ear says that while Biogen’s (BIIB) offer for Sage Therapeutics (SAGE) is a 30% premium to Sage’s Friday’s closing price, which is attractive, the stock has been trading below cash. The offer price implies that the enterprise value for Sage is zero at most, given that Sage could end Q4 with $500M in net cash, the analyst tells investors in a research note. As such, it appears the deal gives no value to Zurzuvae in postpartum depression and no value to any early stage pipeline such as Sage-319, that Sage is excited about, contends Mizuho.