Sage Therapeutics cuts 53% of workforce

Sage Therapeutics, a Massachusetts-based drugmaker that faced a costly setback in December, will cut 53 percent of its workforce in an effort to save money.

The drugmaker will cut 340 jobs, which is expected to save $170 million annually. A majority of the job cuts will affect the commercial operations of its postpartum depression drug Zulresso. 

In December, Sage faced a significant setback after a disappointing Phase 3 clinical trial for its depression drug called zuranolone, or SAGE-217, according to Stat. The results cut more than $6 billion from its market value.

Sage expects to incur a one-time charge of $31 million due to the reduction of workforce, but expects to be able to sustain operations through 2022 with the cuts. 

"The headwinds we are facing individually and collectively, along with a recognition of our need to move forward as a company, have led to this difficult decision. We believe this cost reduction and reallocation of resources will help Sage advance our portfolio in a way that is consistent with our mission of delivering medicines that matter to people with serious brain health disorders," said Jeff Jonas, MD, CEO of Sage Therapeutics.

More articles on pharmacy:
Gilead boosts remdesivir production, now has 1.5M doses
Walgreens adds 6 COVID-19 safety measures to protect workers
2 East Coast pharmacy schools graduating students early to fight COVID-19

© Copyright ASC COMMUNICATIONS 2020. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 

Featured Webinars

Featured Whitepapers