Sage Therapeutics to reduce workforce by 33%, prioritize Zurzuvae

Sage Therapeutics announced a strategic reorganization of its business operations to support the ongoing launch of Zurzuvae in postpartum depression and focus pipeline development efforts ahead of a clinical study readout for dalzanemdor in Huntington’s Disease expected later this year. The reorganization is intended to enable Sage to strengthen its balance sheet, extend cash runway, and position the company for long-term growth potential. The reorganization is planned to be substantially completed by the end of the fourth quarter of 2024 and expected to: impact over 165 employees, including changes to the leadership team; implement early-stage pipeline prioritization. Anne Marie Cook, senior VP, general counsel; Kimi Iguchi, CFO; Matt Lasmanis, chief technology and innovation officer; Heinrich Schlieker, senior VP of technical operations and Amy Schacterle, senior VP of R&D strategy and business management will depart Sage. Chris Benecchi will take on an expanded role as COO and will oversee finance, information technology, and technical operations in addition to continuing to oversee business development, medical affairs and commercial. Greg Shiferman will be promoted to senior VP, general counsel. Sage expects a non-recurring charge of approximately $26M to $28M associated with the reorganization, primarily incurred in the fourth quarter of 2024. The company anticipates that the implementation of the restructuring will extend its cash runway and expects to provide updated cash runway guidance in the near future.