On Friday, Sage Therapeutics Inc. (NASDAQ:SAGE) confirmed that Biogen Inc. (NASDAQ:BIIB) submitted an unsolicited, nonbinding proposal to acquire all of the outstanding shares of Sage Therapeutics not already owned by Biogen for $7.22 per share.

The Sage Board of Directors will carefully review and evaluate Biogen’s proposal.

Also Read: After Failed Alzheimer’s Study, Sage Therapeutics’ Dalzanemdor Flunks Another Study In Patients With Inherited Brain Disorder

In November 2020, Biogen and Sage Therapeutics executed a global collaboration and license agreement to jointly develop and commercialize zuranolone (SAGE-217) for major depressive disorder (MDD), postpartum depression (PPD) and other psychiatric disorders and SAGE-324 for essential tremor and other neurological disorders.

The deal included an upfront payment of $875 million and a $650 million equity investment. Sage was also eligible to receive up to approximately $1.6 billion in potential milestone payments.

Over the last five years, Sage stock has slumped 90%.

In October last year, Sage Therapeutics announced a strategic reorganization of its business operations to support the ongoing launch of Zurzuvae (zuranolone) in postpartum depression.

The company said the reorganization was intended to strengthen Sage’s balance sheet, extend its cash runway, and position the company for long-term growth potential.

The company’s layoff impacted over 165 employees (approximately 33% of its total workforce and approximately 55% of its R&D workforce), including changes to the leadership team.

In September, Biogen terminated its rights under the collaboration and license agreement with Sage, which was specific to the SAGE-324 program.

Price Action: SAGE stock is up 37.3% at $7.62, and BIIB stock is down 0.25% at $148.45 at last check Monday.

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