Supernus completes acquisition of Sage Therapeutics for $8.50 per share

ROCKVILLE, Md. - Supernus Pharmaceuticals, Inc. (NASDAQ:SUPN) announced Thursday it has completed its previously announced acquisition of Sage Therapeutics, Inc. (NASDAQ:SAGE), adding a fourth growth product to its portfolio. According to InvestingPro data, Sage enters this merger with strong liquidity metrics, maintaining more cash than debt on its balance sheet and a healthy current ratio of 9.13x.

The transaction was completed following the expiration of a tender offer where approximately 36.3 million Sage shares, representing about 58 percent of outstanding shares, were validly tendered.

Under the terms of the deal, Sage shareholders will receive $8.50 per share in cash, plus one non-transferable contingent value right (CVR) per share that could provide up to an additional $3.50 per share upon achievement of specified milestones related to sales and regulatory approvals of ZURZUVAE, Sage’s FDA-approved treatment for postpartum depression.

"Sage is an ideal fit in our corporate development strategy, adding a significant fourth growth product to our portfolio and further diversifying our sources of future revenue," said Jack Khattar, President and CEO of Supernus Pharmaceuticals. InvestingPro analysis indicates analysts anticipate significant sales growth for Sage in the current year, though the company is not expected to achieve profitability this year. Discover more insights about Sage’s financial outlook and growth potential in the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

The acquisition strengthens Supernus’ psychiatry portfolio with ZURZUVAE, which is the first and only FDA-approved oral medicine for postpartum depression in adults. Supernus will receive 50% of the total net revenue that Biogen records for ZURZUVAE in the U.S. under an existing collaboration agreement.

Supernus expects to achieve cost synergies of up to $200 million annually and anticipates the acquisition will be accretive to earnings in 2026.

Following the completion of the merger, Sage will operate as a wholly owned subsidiary of Supernus, and Sage shares will be delisted from the Nasdaq Global Market.

The information in this article is based on a press release statement from Supernus Pharmaceuticals.

In other recent news, Sage Therapeutics announced it has entered into a definitive agreement to be acquired by Supernus Pharmaceuticals for $8.50 per share in cash. The deal values the company at approximately $561 million and includes a contingent value right potentially worth an additional $3.50 per share. This acquisition follows Sage’s rejection of an unsolicited offer from Biogen earlier this year and marks a strategic move for Supernus. In response to the acquisition news, several financial firms have adjusted their outlooks for Sage. Scotiabank downgraded Sage Therapeutics from Sector Outperform to Sector Perform, lowering its price target to $9.20. TD Cowen also adjusted its price target to $8.50, maintaining a Hold rating. Meanwhile, Truist Securities raised its price target to $9.00, reflecting the acquisition offer. Piper Sandler downgraded the stock to Neutral, aligning its price target with the $8.50 acquisition offer. These developments highlight the ongoing strategic changes and market reactions surrounding Sage Therapeutics.

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