Emily Dattilo
Shares of Sage Therapeutics were trading lower after the biopharmaceutical company said it plans to slash a third of the workforce.
Sage stock dropped 5.5% to $6.87 in Thursday trading, while the S&P 500 gained 0.3%.
The company on Thursday announced a reshuffling of its business operations to support the ongoing launch of zurzuvae in postpartum depression and focus pipeline development efforts leading up to a clinical study for dalzanemdor in Huntington's disease planned for later this year.
The news follows disappointing results earlier this month from a study to evaluate the effects of a dalzanemdor in patients with mild cognitive impairment or mild dementia due to Alzheimer's disease.
The reorganization is expected to affect 165 employees (about 33% of the total workforce and about 55% of the company's research-and-development workforce), and includes changes to the leadership team. The move is planned to be substantially completed by the end of the fourth quarter.
It "is intended to enable Sage to strengthen its balance sheet, extend cash runway, and position the company for long-term growth potential," according to a company press release.
Write to Emily Dattilo at emily.dattilo@dowjones.com
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(END) Dow Jones Newswires
October 17, 2024 09:47 ET (13:47 GMT)
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