Adds details and background in paragraphs 5-9
Jan 27 (Reuters) - Sage Therapeutics SAGE.O said on Monday that its board has unanimously rejected Biogen’s BIIB.O $469 million offer, stating it "significantly undervalues" the company and does not serve shareholders' best interests.
Biogen, which currently holds a 10.2% stake in Sage, proposed to acquire all outstanding Sage shares it does not already own for $7.22 per share.
Shares of Sage were up 5.3% at $7.48 in early trading.
Sage announced it has initiated a process to explore strategic alternatives but has not set a timeline for the review.
The company stated it will not provide updates unless necessary.
Sage shares plummeted 74.9% last year after discontinuing the development of its experimental drug dalzanemdor due to trial failures.
In October, the Massachusetts-based company announced the departure of Chief Financial Officer Kimi Iguchi and laid off over 165 employees as part of a reorganization to focus on the launch of its postpartum depression pill, Zurzuvae.
The U.S. Food and Drug Administration approved Zurzuvae, co-developed with Biogen, for postpartum depression in 2023.
Sage halted development of another neurological drug with Biogen in July.
(Reporting by Sneha S K; Editing by Tasim Zahid)
((Sneha.SK@thomsonreuters.com;))
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