Supernus buys Sage Therapeutics for $561 million as Cantor holds rating

Published 17/06/2025, 12:36
Supernus buys Sage Therapeutics for $561 million as Cantor holds rating

Supernus Pharmaceuticals (NASDAQ:SUPN), currently valued at $2.03 billion, has agreed to acquire Sage Therapeutics for $8.50 per share in cash, representing a total price of approximately $561 million at closing, with a potential contingent value right (CVR) that could increase the deal value to $795 million or $12.00 per share. The company’s strong financial position, with more cash than debt and a healthy current ratio of 2.44, supports this strategic move. Cantor Fitzgerald reiterated its Neutral rating and $36.00 price target on Supernus following the announcement. According to InvestingPro analysis, the company maintains an impressive "GREAT" financial health score of 3.2 out of 5.

The acquisition will provide Supernus access to ZURZUVAE (zuranolone), a neuroactive steroid GABAA receptor positive modulator. ZURZUVAE is the only FDA-approved oral treatment for postpartum depression (PPD (NASDAQ:PPD)), a condition that affects approximately 12.5% of women, or about 500,000 annually in the United States. With annual revenues of $668 million and industry-leading gross margins of 88.42%, Supernus appears well-positioned to commercialize this new treatment. For deeper insights into Supernus’s financial metrics and growth potential, investors can access the comprehensive Pro Research Report available on InvestingPro.

Cantor Fitzgerald analyst Kristen Kluska maintained the firm’s existing rating on Supernus stock despite the significant acquisition. The unchanged price target suggests the firm believes the deal is appropriately valued relative to Supernus’s current business outlook. InvestingPro analysis indicates the stock is currently trading near its Fair Value, with multiple analysts having revised their earnings estimates upward for the upcoming period.

The transaction represents Supernus’s strategic move to expand its neuroscience portfolio with a commercially approved therapy. ZURZUVAE’s unique position as the only oral treatment option for PPD gives Supernus entry into the maternal mental health market.

Postpartum depression remains a significant public health concern affecting hundreds of thousands of women annually, making the ZURZUVAE acquisition potentially valuable for Supernus’s long-term product portfolio. The deal is expected to close pending customary regulatory approvals.

In other recent news, Supernus Pharmaceuticals has announced a significant acquisition, agreeing to purchase Sage Therapeutics in a deal valued at up to $12 per share. This development follows Supernus’s recent first-quarter 2025 earnings report, where the company disclosed a net loss of $0.21 per share, falling short of the anticipated earnings of $0.37 per share. Despite the earnings miss, Supernus’s revenue slightly exceeded expectations, reaching $149.8 million against the projected $146.9 million. The acquisition of Sage Therapeutics is expected to bolster Supernus’s portfolio, adding to its existing product lineup, which includes strong performers like KELBRI and GOCOVRI. Additionally, Supernus maintains a robust cash position with $463.6 million, which could support further strategic initiatives. Analyst firms have yet to provide updates on Supernus’s stock rating following these developments. Meanwhile, Sarepta Therapeutics (NASDAQ:SRPT) is facing challenges as reports emerged of a second patient death related to its gene therapy treatment for a rare muscle disorder. These events are likely to influence investor sentiment and trading activity within the healthcare sector.

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