Sage Therapeutics 2025 Q2 Earnings Significant Revenue Growth as Net Income Loss Narrows 51.7%

Sage Therapeutics (SAGE) reported its fiscal 2025 Q2 earnings on Jul 30th, 2025. Sage Therapeutics exceeded market expectations with a remarkable 189.4% increase in total revenue, reaching $23.21 million compared to $8.02 million in the previous year. The company has adjusted its guidance to reflect an optimistic outlook, anticipating substantial topline revenue growth driven by its commercialization investment plan. Sage plans to release data from a Phase 1 study of SAGE-319 by late 2025, which will inform their next strategic steps.

Revenue
Sage Therapeutics experienced a remarkable surge in collaboration revenue, primarily driven by its partnership with Biogen, contributing $23.21 million. Additionally, other revenue sources added $8.45 million to the total, culminating in overall revenues of $31.66 million for the quarter.

Earnings/Net Income
Sage Therapeutics significantly reduced its net loss to $49.65 million in 2025 Q2, a 51.7% improvement from the $102.85 million loss in 2024 Q2. The EPS also improved, narrowing losses to $0.79 per share compared to $1.70 per share last year, indicating a positive trajectory.

Price Action
The stock price of Sage Therapeutics has edged down 0.69% during the latest trading day, has edged down 1.03% during the most recent full trading week, and has dropped 5.14% month-to-date.

Post-Earnings Price Action Review
The investment strategy of purchasing Sage Therapeutics shares when revenues fall short and holding for 30 days proved to be significantly detrimental, yielding a loss of 86.41%. This strategy lagged behind the benchmark by 133.95%, demonstrating considerable risk with a Sharpe ratio of -0.57 and a maximum drawdown of 0%. Despite potential opportunities, the approach highlighted the inherent volatility and high-risk nature of investing in biopharmaceutical stocks, where revenue fluctuations can lead to substantial financial setbacks.

CEO Commentary
Barry Greene, Chief Executive Officer at Sage Therapeutics, highlighted that the second quarter results indicate revenue acceleration, driven by increased investment and strong execution, particularly around ZURZUVAE, which reflects a commitment to advancing care for women with postpartum depression. He expressed pride in the progress made during the ongoing acquisition process with Supernus Pharmaceuticals, emphasizing the focus on helping more patients.

Guidance
The company anticipates that its current commercialization investment plan, including joint sales force expansions and marketing efforts, will significantly support topline revenue growth in 2025. Sage expects to release data from a Phase 1 study of SAGE-319 by late 2025 and will evaluate next steps based on those results.

Additional News
Supernus Pharmaceuticals is set to acquire Sage Therapeutics, offering $8.50 per share in cash along with contingent value rights (CVRs) worth up to $3.50 per share. This acquisition, expiring on July 30, 2025, includes ambitious milestones for ZURZUVAE sales in the U.S. and regulatory approval in Japan. The merger agreement follows the expiration of the Hart-Scott-Rodino Act waiting period, indicating regulatory approval for the acquisition. Legal advisors for the transaction include Moelis & Company LLC for Supernus and Goldman Sachs & Co. LLC for Sage.