Biogen ends SAGE-324 partnership after tremor study failure

Biogen has decided to end its collaboration with Sage Therapeutics on the development of SAGE-324, following the disappointing results of a study aimed at treating essential tremor. The study, conducted in July, revealed that SAGE-324, also known as BIIB124, failed to outperform a placebo in reducing upper limb tremors. As a result, the two companies have decided to halt any further development of SAGE-324 for this condition. Sage initially indicated that it would work with Biogen to determine whether the drug could be repurposed for other medical uses. However, after two months of consideration, Biogen opted to discontinue its involvement altogether. The official end of the collaboration is set for February, at which point Sage will regain full control of SAGE-324.

Despite this setback, Sage remains optimistic about the future of SAGE-324. The company has stated its intention to explore other potential uses for the drug. During a July earnings call, Sage executives declined to specify which new indications they might be considering, leaving the door open for various possibilities.

One significant repercussion of this termination is the financial impact on Sage. The original agreement between the two companies, formed in 2020, included a substantial financial commitment from Biogen. Biogen had paid $875 million upfront and made an additional $650 million investment in Sage to secure the collaboration. The failure of SAGE-324 in treating essential tremor means that Sage will miss out on up to $150 million in development milestones that were tied to this specific indication. Furthermore, Biogen had committed up to $520 million contingent on regulatory and commercial achievements for SAGE-324, alongside an additional $300 million linked to specific net sales milestones. All these potential financial gains are now off the table for Sage.

Although the collaboration on SAGE-324 is ending, Sage and Biogen will continue their partnership on another project. They will maintain their joint efforts on Zurzuvae, a drug that received FDA approval last year for the treatment of postpartum depression.

In summary, the termination of the Biogen-Sage collaboration on SAGE-324 marks a significant shift in both companies' strategic directions. While Sage loses a potential revenue stream and a partner in developing SAGE-324, it retains hope for the drug's future in other indications. Meanwhile, the continuation of their partnership on Zurzuvae offers a silver lining in an otherwise challenging situation.