Palantir Technologies lifts guidance after Q2 results beat Wall Street estimates
Truist Securities raised its price target on Sage Therapeutics (NASDAQ:SAGE) to $9.00 from $8.00 on Tuesday, while maintaining a Hold rating on the stock. The company’s shares, currently trading at $9.07, have surged nearly 30% in the past week, according to InvestingPro data.
The price target adjustment follows Sage’s disclosure that Supernus Pharmaceuticals (NASDAQ:SUPN) has made an all-cash offer to acquire the company at $8.50 per share, plus a contingent value right (CVR) of up to $3.50 per share. The company enters this deal from a position of financial strength, with InvestingPro analysis showing strong liquidity metrics and more cash than debt on its balance sheet.
The CVR payments are tied to specific performance milestones, including achieving U.S. net sales targets of $250 million by the end of 2027, $300 million by the end of 2028, and $375 million by the end of 2030, each worth $1.00 per share to Sage shareholders.
An additional CVR payment of $0.50 per share would be triggered by the first commercial sale in Japan following regulatory approval of Zurzuvae for major depressive disorder by June 30, 2026.
Truist’s new price target reflects the acquisition news and includes a probability-adjusted value of $1.00 per share for the CVR component of the deal.
In other recent news, Supernus Pharmaceuticals has announced its acquisition of Sage Therapeutics, with the deal valued at up to $795 million. The agreement includes an upfront payment of $8.50 per share in cash, totaling approximately $561 million, and a contingent value right worth up to an additional $3.50 per share based on sales milestones, potentially bringing the total to $12 per share. This acquisition will add ZURZUVAE, an FDA-approved treatment for postpartum depression, to Supernus’ portfolio. Sage Therapeutics reported a net loss of $62.2 million for the first quarter of 2025, with earnings per share at -1.01, slightly missing the forecast of -0.99. Revenue for the quarter was $14.06 million, also falling short of the anticipated $14.14 million. Piper Sandler has downgraded Sage Therapeutics to Neutral from Overweight following the acquisition announcement, aligning its price target with the upfront offer of $8.50 per share. The acquisition is expected to close in the third quarter of 2025, pending regulatory approvals.
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