• Revenue: $11.4 million in Q4 2024, a 4% increase from Q3 2024; $36.1 million for the full year 2024.
• R&D Expenses: $37 million in Q4 2024.
• SG&A Expenses: $54 million in Q4 2024.
• Restructuring Expenses: One-time expenses of $22.5 million in Q4 2024.
• Net Loss: $95.8 million for Q4 2024.
• Cash Position: $504 million in cash, cash equivalents, and marketable securities as of December 31, 2024.
• Prescription Growth: 2,500 prescriptions shipped in Q4 2024, a 21% increase from Q3 2024; over 6,600 prescriptions for the full year 2024.
• Coverage: Greater than 95% of commercial and Medicaid lives covered or with a path to coverage for ZURZUVAE.

• Warning! GuruFocus has detected 4 Warning Signs with SAGE.

Release Date: February 11, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Sage Therapeutics Inc (NASDAQ:SAGE) reported early commercial success with ZURZUVAE, the first oral treatment for postpartum depression (PPD), exceeding expectations with over 6,600 shipments in 2024.
• The company plans to invest in 2025 to fuel top-line revenue growth, indicating confidence in ZURZUVAE's market potential.
• ZURZUVAE has achieved greater than 90% aided brand awareness among OB-GYNs and psychiatrists, reflecting strong market penetration.
• More than 95% of commercial and Medicaid lives are covered or have a path to coverage for ZURZUVAE, ensuring broad access for patients.
• Sage Therapeutics Inc (NASDAQ:SAGE) has a strong financial position with cash runway expected to last until mid-2027, supporting ongoing operations and strategic initiatives.

Negative Points

• The company reported a net loss of $95.8 million for the fourth quarter of 2024, highlighting ongoing financial challenges.
• There were one-time restructuring expenses of $22.5 million in the fourth quarter of 2024, impacting overall financial performance.
• Despite strong demand growth, revenue growth was modest due to inventory dynamics, indicating potential challenges in supply chain management.
• The company is facing strategic uncertainty with Biogen's unsolicited acquisition proposal and the initiation of a strategic review process.
• Sage Therapeutics Inc (NASDAQ:SAGE) is not currently investing in further development of SAGE-324, indicating potential limitations in pipeline advancement.

Q & A Highlights

Q: Can you elaborate on Biogen's involvement in the sales force expansion and marketing efforts for ZURZUVAE? A: Barry Greene, CEO, explained that based on 2024's performance, Sage and Biogen have aligned on an integrated commercialization plan for 2025. This includes increasing the sales force and investing in medical affairs, disease state awareness, and direct-to-consumer (DTC) efforts. Chris Benecchi, COO, added that social media campaigns and connected TV are part of the strategy to reach both patients and healthcare providers.

Q: Could you explain the inventory dynamics and the proportion of free drugs provided in Q4? A: Barry Greene noted that demand grew over 20% quarter-on-quarter, and Chris Benecchi clarified that revenue is recorded when product moves to wholesalers, with inventory fluctuations at specialty pharmacies and wholesalers. The percentage of free drugs decreased in Q4, and they expect this trend to continue as coverage improves.

Q: How are you addressing potential headwinds in Q1 due to payer dynamics? A: Barry Greene stated they anticipate continued growth in Q1, as their reimbursement is primarily through commercial and Medicaid channels, avoiding typical Medicare-related issues. Chris Benecchi added that the market is promotionally responsive, and they do not expect holiday-related disruptions in Q1.

Q: Can you provide more details on the sales force expansion and its expected impact? A: Barry Greene mentioned that the sales force was expanded in Q4, resulting in a 33% increase in territories where they expanded. Although specific future guidance wasn't provided, they are confident that the expansion will continue to drive demand and revenue growth.

Q: Are there any constraints on commercial support for ZURZUVAE following the corporate restructure? A: Barry Greene assured that there are no constraints on commercial support. They are focused on scaling with success and believe that investments will lead to immediate improvements in demand and revenue.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.