Sage Therapeutics price target lowered to $8.50 by TD Cowen

TD Cowen lowered its price target on Sage Therapeutics (NASDAQ:SAGE) stock to $8.50 from $9.00 on Monday, while maintaining a Hold rating on the biopharmaceutical company. The stock, currently trading at $9.1, has shown remarkable momentum with a 72% gain over the past six months and a 30% surge in the past week. According to InvestingPro analysis, technical indicators suggest the stock is in overbought territory.

The price target adjustment reflects the proposed acquisition offer from Supernus Pharmaceuticals (NASDAQ:SUPN), which has agreed to purchase Sage Therapeutics at $8.50 per share.

TD Cowen does not anticipate a competing bid emerging that would exceed the current offer price, according to its research note.

The transaction is expected to close in the third quarter of 2025, with TD Cowen predicting minimal regulatory hurdles from the Federal Trade Commission.

Despite the rating adjustment, TD Cowen expressed continued confidence in the long-term potential of Zurzuvae, Sage’s postpartum depression treatment, which the firm considers the company’s main value driver.

In other recent news, Sage Therapeutics reported its financial results for Q1 2025, revealing a net loss of $62.2 million and an earnings per share (EPS) of -1.01, slightly missing the forecast of -0.99. Revenue for the quarter was $14.06 million, which fell short of the expected $14.14 million. Meanwhile, Supernus Pharmaceuticals announced its acquisition of Sage Therapeutics in a deal valued at up to $795 million. The agreement includes an upfront payment of $8.50 per share, with potential additional value through contingent value rights that could bring the total transaction value to $12 per share. Truist Securities responded to the acquisition by raising its price target for Sage Therapeutics to $9.00, while Piper Sandler downgraded the stock to Neutral from Overweight, adjusting its price target to $8.50. The acquisition is expected to add ZURZUVAE, a treatment for postpartum depression, to Supernus’ portfolio, with anticipated cost synergies of up to $200 million annually. Sage Therapeutics anticipates becoming cash flow positive with its product XERZUVEY by the end of 2026.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.