Sage Therapeutics (SAGE) PT Lowered to $12 at Mizuho

Mizuho analyst Vamil Divan lowered the price target on Sage Therapeutics (NASDAQ: SAGE) to $12.00 (from $13.00) while maintaining a Neutral rating.

The analyst commented: "Both positives and negatives came out of 2Q24. On the positive side, Zurzuvae sales were modestly above consensus, and we are encouraged by the strong prescription growth (+67% Q/Q written Rxs) and significant commercial and particularly Medicaid coverage expansion. On the negative side, Zurzuvae sales were below our forecast due to wholesaler destocking and free drugs, and there is the potential for more destocking. Additionally, Sage expects to expand the Zurzuvae sales force in 4Q24 to drive growth in 2025, without Biogen's backing, which may lead to questions on the strength of the partnership. We lower our 2024 Zurzuvae collaboration revenues forecast from $39M to $33M. Although we are more constructive on Zurzuvae, we remain Neutral as we already forecast >$300M in peak sales and are cautious about forecasting higher before having better visibility on potential adoption. We lower our PT from $13 to $12 on higher spend."

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