After a string of mid-stage failures this year, plus a blow to its major depression commercial plans last year, Sage Therapeutics is trimming its workforce by 33%, including more than halving its R&D staff.
The biotech said Thursday morning it will also reshape its early-stage pipeline and will make most of the workforce culls by the end of this quarter. The departures include CFO Kimi Iguchi, chief technology and innovation officer Matt Lasmanis, and a few SVPs. Its operating chief Chris Benecchi will now also oversee finance and other functions.
The goal is to focus on its launch of Zurzuvae in postpartum depression and prepare for a clinical readout of dalzanemdor in Huntington’s disease by year’s end. The experimental dalzanemdor, an NMDA receptor positive allosteric modulator, has already failed two Phase 2 trials in Parkinson’s and Alzheimer’s this year.
Barry GreeneSage’s other clinical medicine, SAGE-324, flunked on an essential tremor mid-stage test in July. Biogen then walked away from that part of their tie-up.
“We are being deliberate and purposeful in our efforts to reorganize the company with the goal of having the flexibility to execute immediate priorities and build for long term growth and value creation,” CEO Barry Greene said in a press release. “This is difficult but necessary and we believe it will right-size Sage for future growth potential.”
The moves will affect more than 165 employees and costSage $26 million to $28 million. It will push Sage’s runway out an undisclosed distance. The company will report quarterly earnings on Oct. 29.