Citi initiated coverage of Sage Therapeutics with a Sell rating and $8 price target. The stock’s 45% year-to-date decline and a 75% decline since the FDA Complete Response Letter for zuranolone makes it look like a buying opportunity, but with upcoming binary catalysts and a commercial launch that could disappoint, there may be further downside ahead given the high cash burn that may lead to Sage Therapeutics being valued up to 50% below cash, the analyst tells investors in a research note.
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