By Colin Kellaher

Sage Therapeutics has rejected a buyout bid from partner Biogen and launched a review of strategic alternatives.

Sage on Monday said its board determined that Biogen's $7.22-a-share proposal significantly undervalues the biopharmaceutical company and isn't in the best interest of its shareholders.

The unsolicited bid from Biogen, which already owns a roughly 10.2% stake in Sage, values Sage at about $442 million.

Sage said its board will evaluate a range of opportunities to maximize value for shareholders, including a potential strategic transaction, business combination or sale.

Biogen and Sage, both based in Cambridge, Mass., are partners on Zurzuvae, the first and only U.S. approved drug for postpartum depression.

Analysts at Truist earlier this month said they believe Biogen's bid is roughly equal to Sage's cash on hand and undervalues Zurzuvae, which they said is off to a slow but steady launch trajectory.

Sage said it will focus on its goal of establishing Zurzuvae as the standard of care for women with postpartum depression while the board conducts its review.

Sage shares were changing hands at $7.49, up 5.5%, in early trading Monday.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

January 27, 2025 09:42 ET (14:42 GMT)

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