Sage Therapeutics Announces First Quarter 2019 Financial Results and Highlights Pipeline and Business Progress

ZULRESSO™ (brexanolone) injection approved by U.S. FDA and on track
for launch in late June

Commercial team is launch ready; field teams focusing on payer
engagement and identifying pathways to care

Strong financial position with ~$1.4B in cash

Milestones anticipated throughout 2019 in clinical studies across all
three franchises: depression, neurology and neuropsychiatry

Conference call today at 8:00 A.M. ET

CAMBRIDGE, Mass.–(BUSINESS WIRE)–Sage Therapeutics, Inc. (NASDAQ: SAGE), a biopharmaceutical company
developing novel medicines to treat life-altering central nervous system
(CNS) disorders, today reported business highlights and financial
results for the first quarter ended March 31, 2019.

“We started 2019 with positive data from a Phase 3 clinical trial of our
lead oral compound SAGE-217 in postpartum depression and this was
quickly followed by the FDA approval of ZULRESSO in PPD,” said Jeff
Jonas, M.D., chief executive officer at Sage. “It was gratifying that
our first drug approval generated extensive media coverage of a disorder
that for too long has been shrouded by stigma and shame. We anticipate
additional momentum in our development efforts during the remainder of
the year across our three franchises in depression, neurology and
neuropsychiatry and believe the depth and breadth of our novel portfolio
of compounds in these areas is unrivaled in the industry. We are
confident in our potential to create a paradigm shift in the way brain
health is thought about and treated.”

Depression Franchise:
Led by
ZULRESSO™ (brexanolone) injection, approved by the U.S. Food and Drug
Administration (FDA) in March 2019 as the first treatment specifically
indicated for postpartum depression (PPD), and SAGE-217, which is being
evaluated in clinical studies as a treatment for major depressive
disorder (MDD), PPD, bipolar depression as well as comorbid MDD and
insomnia. SAGE-217 has received breakthrough therapy designation from
the FDA for the treatment of MDD.

• ZULRESSO: Launch in the U.S. is on track for late June 2019 following
  scheduling by the U.S. Drug Enforcement Administration (DEA). ZULRESSO
  will only be available under a Risk Evaluation and Mitigation Strategy
  (REMS) program called the ZULRESSO REMS. Prior to launch, Sage
  continues to execute against its go-to-market strategy with a focus on
  activating REMS-certified Centers of Excellence (COEs) and alternate
  sites of care, with the goal of ensuring broad access for women with
  PPD.
  • Sage has identified a targeted list of COEs that the Company
    believes are capable of providing ZULRESSO to patients at launch
    and in subsequent periods. These COEs are sites of care that have
    a PPD healthcare provider champion, ability to secure appropriate
    payer reimbursement for ZULRESSSO, and the capabilities to operate
    under the REMS. The commercial field teams are continuing to
    educate medical and administrative leaders at these COEs on the
    ZULRESSO REMS, as permitted, and we have been able to initiate the
    process of REMS-certification at some of these COEs.
  • The Sage field market access team has completed more than 500
    payer engagement meetings during the past several months, as
    permitted, including meetings with the majority of commercial and
    Medicaid payers. Since approval, these teams have conducted
    productive meetings with payers representing 90 percent of covered
    lives in the U.S.
  • The Sage patient support organization is launch ready and will
    provide a range of patient support resources to assist women with
    PPD and their families, including: dedicated case managers who can
    provide information to help navigate the treatment journey;
    personalized support to assist with understanding insurance and
    coverage options; financial assistance programs for eligible
    patients; and access to educational resources and assistance
    through connections to local resources.
  • Sage is continuing to use digital health technology in its efforts
    to raise awareness and reduce the stigma of PPD. Initiatives
    include:
    • Support of digital PPD education modules, reaching nearly
      50,000 healthcare providers in the U.S. through the Medscape
      platform;
    • Support of digital health solutions to pregnant women and new
      moms, resulting in more than 100,000 digital screenings for
      PPD.
  • A U.S. patent, exclusively licensed to the Company, was recently
    issued covering the method of treating PPD using brexanolone
    injection; this patent will expire in 2033.

• SAGE-217: The pivotal program evaluating the potential of SAGE-217 as
  a short-course episodic, rapidly-acting oral treatment for MDD and PPD
  is progressing on target. This program includes two completed,
  positive pivotal studies, one in MDD and one in PPD.
  • In January 2019, Sage announced statistically significant top-line
    results in primary and secondary endpoints from the Phase 3 ROBIN
    Study of SAGE-217 in women with severe PPD. These results
    demonstrated a rapid, stable, and clinically meaningful
    improvement in depressive symptoms in the SAGE-217 treatment group
    compared to the placebo group after two weeks of treatment. The
    effect was maintained through the end of the four-week follow-up
    period. The most common adverse events in the treatment group were
    somnolence, headache, dizziness, upper respiratory tract
    infection, diarrhea, and sedation. Two subjects experienced
    serious adverse events, one in each treatment group.
  • Ongoing or planned studies in the program include:
    • MOUNTAIN Study: Evaluates a dosing regimen of two weeks
      of 20mg or 30mg SAGE-217 treatment compared to placebo in
      approximately 450 patients with MDD, with four weeks of
      blinded follow-up. Top-line data from the study are expected
      in Q4 2019 or Q1 2020. As a separate observational phase, the
      Company will continue to follow patients for up to six months.
    • Retreatment studies: These studies are designed
      to provide longer-term retreatment and follow-up safety and
      tolerability data.
      • MDD-302 will evaluate fixed interval SAGE-217 monotherapy
        maintenance (treatment without traditional
        antidepressants) for up to a year. This placebo-controlled
        trial is expected to commence in 3Q 2019 and, if
        successful, is intended to help meet the expected
        requirements for a New Drug Application for SAGE-217, and
        enable inclusion of maintenance dosing as part of the
        label.
      • The SHORELINE Study evaluates 30mg SAGE-217 open-label
        treatment, treatment-free intervals and as-needed
        retreatment for return of major depressive episodes over
        the course of up to a year. Patients will receive an
        initial two-week course of SAGE-217 therapy and will be
        assessed every eight weeks for potential relapse of
        depressive symptoms. Data are expected in 2020.
    • RAINFOREST Study: Evaluates two weeks of 30mg SAGE-217
      treatment compared to placebo in approximately 100 patients
      with MDD and comorbid insomnia. Top-line data are expected in
      2020.
  • The Company is also evaluating SAGE-217 in the Phase 2 open-label
    ARCHWAY Study in approximately 30 patients with bipolar I/II
    disorder with a current major depressive episode. Primary
    endpoints are safety and tolerability; secondary endpoints will
    measure improvements in depressive symptoms and sleep. Sage plans
    to announce top-line data from this study in July 2019.
  • The Company is also evaluating the potential for development of
    SAGE-217 in additional affective disorders and expects to provide
    an update on those plans in July 2019.

Neurology Franchise:
Led
by SAGE-324, a next-generation positive allosteric modulator (PAM) of
GABA_A receptors, in development as a potential
therapy for neurological conditions, such as essential tremor (ET) and
epileptiform disorders.

• SAGE-324: In a Phase 1 single ascending dose study (SAD), SAGE-324 was
  generally well-tolerated with no serious adverse events and
  demonstrated a pharmacokinetic profile consistent with once-daily
  dosing.
  • Sage is continuing to evaluate SAGE-324 in a Phase 1 multiple
    ascending dose (MAD) study in healthy volunteers and a Phase 1
    single dose open-label study in patients with ET. These studies
    are designed to evaluate the safety, tolerability and
    pharmacokinetics of the compound. Target engagement using
    pharmaco-EEG (β-band power) was observed in the SAD study and will
    continue to be evaluated in the MAD study. Results from these
    trials are expected to be announced in 2H 2019.

Neuropsychiatry Franchise:
Led
by SAGE-718, a first-in-class NMDA receptor PAM, in development as a
potential therapy for certain cognition-related disorders impacted by
NMDA receptor dysfunction.

• SAGE-718: The completed Phase 1 single and multiple ascending dose
  studies in healthy volunteers demonstrated a pharmacokinetic profile
  consistent with once-daily dosing. SAGE-718 was generally
  well-tolerated in the studies with no serious adverse events.
  • Results from ongoing Phase 1 target engagement biomarker studies
    in healthy volunteers, focusing on electrophysiology and imaging,
    are expected to be announced in July 2019.
  • Results from an ongoing Phase 1 study to determine the safety,
    tolerability and pharmacokinetics in patients with early
    Huntington’s disease are expected to be announced in 2H 2019.

Anticipated Upcoming Milestones

• Top-line data readouts:
  • SAGE-217 Phase 2 ARCHWAY Study in bipolar depression (July 2019)
  • SAGE-324 Phase 1 MAD study; cohorts 1-4 (July 2019)
  • SAGE-718 Phase 1 biomarker data (July 2019)
  • SAGE-718 early Huntington’s disease Phase 1 cohort data (2H 2019)
  • SAGE-324 essential tremor Phase 1 topline data (2H 2019)
  • SAGE-217 MDD Phase 3 MOUNTAIN Study (Q4 2019/Q1 2020)
  • SAGE-217 MDD Phase 3 RAINFOREST and SHORELINE studies (2020)
• Regulatory and commercial:
  • ZULRESSO commercial launch in the U.S., pending DEA scheduling
    (late June 2019)

Financial Results for the First Quarter of 2019

• Cash Position: Cash, cash equivalents, and marketable
  securities as of March 31, 2019 were approximately $1.4 billion,
  compared to $922.8 million at December 31, 2018. The increase was
  primarily due to proceeds from Sage’s follow-on public offering
  completed in February 2019.
• R&D Expenses: Research and development expenses were $86.4
  million, including $20.7 million of non-cash stock-based compensation
  expense, in the first quarter of 2019, compared to $49.3 million,
  including $8.9 million of non-cash stock-based compensation expense,
  for the same period of 2018. The increase in R&D expenses
  year-over-year was primarily due to advancement of the pivotal program
  for SAGE-217 in depression; continued research efforts across the
  Company’s early-stage clinical and discovery pipeline; and investments
  in R&D headcount to support the growth in Sage’s pipeline and
  operations.
• G&A Expenses: General and administrative expenses
  were $83.9 million, including $23.4 million of non-cash stock-based
  compensation expense, in the first quarter of 2019, compared to $28.8
  million, including $6.9 million of non-cash stock-based compensation
  expense, for the same period of 2018. The increase in G&A expenses was
  primarily due to the increase in personnel-related expenses,
  professional fees to support expanding operations, costs related to
  continued preparations for the anticipated commercial launch of
  ZULRESSO, and facilities-related costs to support expanding operations.
• Net Loss: Net loss was $163.4 million for the first quarter of
  2019 compared to a net loss of $74.6 million, for the comparable
  period of 2018.

Financial Guidance

• Based on its current operating plan, Sage now anticipates that its
  balance of cash, cash equivalents and marketable securities will be at
  least $950 million at the end of 2019.
• Sage expects that its operating expenses will increase year-over-year
  in 2019 to support continued pipeline advancement and anticipated
  commercialization of ZULRESSO in PPD.

Conference Call Information
Sage
will host a conference call and webcast today at 8:00 A.M. ET to discuss
its first quarter 2019 financial results and recent corporate updates.
The live webcast can be accessed on the investor page of Sage’s website
at investor.sagerx.com. The conference call can be accessed by dialing
1-866-450-8683 (toll-free domestic) or 1-281-542-4847 (international)
and using the conference ID 5968036. A replay of the webcast will be
available on Sage’s website approximately two hours after the completion
of the event and will be archived for up to 30 days.

About Sage Therapeutics
Sage
Therapeutics is a biopharmaceutical company committed to developing
novel medicines to transform the lives of patients with life-altering
central nervous system (CNS) disorders. Sage’s portfolio of novel
compounds targets critical receptor systems in the brain and includes
the first treatment specifically approved by the U.S. Food and Drug
Administration for postpartum depression as well as compounds being
developed as potential treatments for diseases such as major depressive
disorder, insomnia, bipolar disorder and essential tremor. For more
information, please visit www.sagerx.com.

Forward-Looking Statements
Various
statements in this release concern Sage’s future expectations, plans and
prospects, including without limitation: our expectations regarding the
timing of scheduling and launch of ZULRESSO in the treatment of PPD; our
plans regarding anticipated future commercial and patient support
activities; our expectations regarding availability of REMS-certified
sites of care for the administration of ZULRESSO and access to treatment
for women with PPD; our statements regarding the potential for
reimbursement of ZULRESSO; our view as to the potential for us to
change the way brain health is treated; our statements regarding the
target product profiles, plans and timelines for development of our
product candidates, including planned clinical activities and reporting
of results; our views as to the depth and breadth of our portfolio and
the opportunity represented by our programs and business; and our
expectations regarding our cash position at year-end and increases in
operating expense. These statements constitute forward-looking
statements as that term is defined in the Private Securities Litigation
Reform Act of 1995. These forward-looking statements are neither
promises nor guarantees of future performance, and are subject to a
variety of risks and uncertainties, many of which are beyond our
control, which could cause actual results to differ materially from
those contemplated in these forward-looking statements, including the
risks that: scheduling and launch of ZULRESSO may not occur on the
timelines we expect; we may encounter issues or other challenges in
launching and commercializing ZULRESSO, including issues related to
market acceptance by healthcare providers, healthcare settings and women
with PPD, challenges with reimbursement, issues related to limitations
on the site of administration of ZULRESSO to REMS-certified supervised
healthcare settings and the other requirements of the REMS, and
challenges associated with execution of our sales and patient support
activities, which in each case could limit the potential of ZULRESSO;
results achieved with use of ZULRESSO in the treatment of PPD once we
have launched the product may be different than observed in clinical
trials, and may vary among patients; the number of women with PPD or the
unmet need for additional treatment options may be significantly smaller
than we expect; we may encounter unexpected safety or tolerability
issues with ZULRESSO or any of our product candidates; we may not be
successful in our development of any of our current or future product
candidates in any indication we are currently pursuing or may in the
future pursue; success in early stage clinical trials may not be
repeated or observed in ongoing or future studies of any of our product
candidates; ongoing and future clinical results may not support further
development or be sufficient to gain regulatory approval of our product
candidates; we may decide that a development pathway for one of our
product candidates in one or more indications is no longer feasible or
advisable or that the unmet need no longer exists; the FDA may decide
that the development program for any of our product candidates, even if
positive, is not sufficient for a new drug application filing or
approval; decisions or actions of the FDA or other regulatory agencies
may affect the initiation, timing, design, size, progress and cost of
clinical trials and our ability to proceed with further development; we
may experience slower than expected enrollment in ongoing or future
clinical trials; the internal and external costs required for our
anticipated launch and commercialization activities and ongoing and
planned research and development efforts, and to build our organization
in connection with such activities, and the resulting expense increases
and use of cash, may be higher than expected, or we may conduct
additional clinical trials or pre-clinical studies, or engage in new
activities, requiring additional expenditures and using cash more
quickly than anticipated and we may encounter technical and other
unexpected hurdles in the commercialization of ZULRESSO or in the
development of our product candidates; as well as those risks more fully
discussed in the section entitled “Risk Factors” in our most recent
report filed with the Securities and Exchange Commission (SEC), and
discussions of potential risks, uncertainties, and other important
factors in our subsequent filings with the SEC. In addition, any
forward-looking statements represent our views only as of today, and
should not be relied upon as representing our views as of any subsequent
date. We explicitly disclaim any obligation to update any
forward-looking statements.

Sage Therapeutics, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (in thousands, except share and per share data) (Unaudited)
			Three Months Ended March 31,
			2019				2018
Collaboration revenue			$	465			$	–
Operating expenses:
Research and development				86,398				49,270
General and administrative				83,919				28,849
Total operating expenses				170,317				78,119
Loss from operations				(169,852	)			(78,119	)
Interest income, net				6,442				3,529
Other income (expense), net				4				(8	)
Net loss			$	(163,406	)		$	(74,598	)
Net loss per share – basic and diluted			$	(3.37	)		$	(1.68	)
Weighted average shares outstanding – basic and diluted				48,491,834				44,325,371

Sage Therapeutics, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in thousands) (Unaudited)
			March 31, 2019				December 31, 2018
Cash, cash equivalents, restricted cash and investments			$	1,353,618			$	925,143
Total assets			$	1,422,914			$	952,705
Total liabilities			$	103,380			$	89,734
Total stockholders’ equity			$	1,319,534			$	862,971

Important Safety Information:

What is ZULRESSO™?

ZULRESSO is a prescription medicine used in adults to treat a certain
type of depression called Postpartum Depression.

IMPORTANT SAFETY INFORMATION

What is the most important information I should know about ZULRESSO?

ZULRESSO can cause serious side effects, including:

• Excessive sedation and sudden loss of consciousness. ZULRESSO
  may cause you to feel very sleepy (excessive sedation) or pass out
  (loss of consciousness). Your healthcare provider should check you for
  symptoms of excessive sleepiness every 2 hours while you are awake.
  • During your ZULRESSO infusion, tell your healthcare provider right
    away if you feel like you cannot stay awake during the time you
    are normally awake or if you feel like you are going to pass out.
    Your healthcare provider may lower your dose or stop the infusion
    until symptoms go away.
  • You must have a caregiver or family member with you to help care
    for your child(ren) during your ZULRESSO infusion.
• Because of the risk of serious harm resulting from excessive sedation
  or sudden loss of consciousness, ZULRESSO is only available through a
  restricted program called the ZULRESSO REMS.

Before receiving ZULRESSO, tell your healthcare provider about all
your medical conditions, including if you:

• drink alcohol
• have kidney problems
• are pregnant or think you may be pregnant. It is not known if ZULRESSO
  will harm your unborn baby.
  • There is a pregnancy registry for females who are exposed to
    ZULRESSO during pregnancy. The purpose of the registry is to
    collect information about the health of females exposed to
    ZULRESSO and their baby. If you become pregnant during treatment
    with ZULRESSO, talk to your healthcare provider about registering
    with the National Pregnancy Registry for Antidepressants at
    1-844-405-6185 or visit https://womensmentalhealth.org/clinical-and-research-programs/pregnancyregistry/antidepressants/
• are breastfeeding or plan to breastfeed. ZULRESSO passes into breast
  milk. Talk to your healthcare provider about the risks and benefits of
  breastfeeding and about the best way to feed your baby while receiving
  ZULRESSO.

Tell your healthcare provider about all the medicines you take, including
prescription and over-the-counter medicines, vitamins, and herbal
supplements.

ZULRESSO and some medicines may interact with each other and cause
serious side effects.

Especially tell your healthcare provider if you take other
antidepressants, opioids, or Central Nervous System (CNS) depressants
(such as benzodiazepines).

Know the medicines you take. Keep a list of them to show your healthcare
provider and pharmacist when you get a new medicine. Your healthcare
provider will decide if other medicines can be taken with ZULRESSO.

How will I receive ZULRESSO?

ZULRESSO is given to you by continuous intravenous (IV) infusion into
your vein. The infusion will last for a total of 60 hours (2.5 days).

What should I avoid while receiving ZULRESSO?

• ZULRESSO may make you feel dizzy and sleepy. Do not drive a car or do
  other dangerous activities after your ZULRESSO infusion until your
  feeling of sleepiness has completely gone away. See “What is the
  most important information I should know about ZULRESSO?”
• Do not drink alcohol while receiving ZULRESSO.

What are the possible side effects of ZULRESSO?

ZULRESSO can cause serious side effects, including:

• See “What is the most important information I should know about
  ZULRESSO?”
• Increased risk of suicidal thoughts or actions. ZULRESSO and
  other antidepressant medicines may increase suicidal thoughts and
  actions in some people 24 years of age and younger. Depression or
  other serious mental illnesses are the most important causes of
  suicidal thoughts or actions.

How can I watch for and try to prevent suicidal thoughts and actions?

• Pay close attention to any changes, especially sudden changes in mood,
  behavior, thoughts, or feelings, or if you develop suicidal thoughts
  or actions.
• Tell your healthcare provider right away if you have any new or sudden
  changes in mood, behavior, thoughts, or feelings.
• Keep all follow-up visits with your healthcare provider as scheduled.
  Call your healthcare provider between visits as needed, especially if
  you have concerns about symptoms.

Tell your healthcare provider right away if you have any of the
following symptoms, especially if they are new, worse, or worry you:

• Attempts to commit suicide, thoughts about suicide or dying, new or
  worse depression, other unusual changes in behavior or mood

The most common side effects of ZULRESSO include:

• Sleepiness, dry mouth, passing out, flushing of the skin or face.

These are not all the side effects of ZULRESSO.

Call your doctor for medical advice about side effects. You may report
side effects to FDA at 1-800-FDA-1088.

Please see full
Prescribing Information, including Boxed WARNING, and Medication
Guide for ZULRESSO™ and discuss any questions you may have with your
healthcare provider.

Contacts

Investor Contact:
Maren Killackey, 617-949-4113
maren.killackey@sagerx.com

Media Contact:
Jeff Boyle, 617-949-4256
jeff.boyle@sagerx.com

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