Sage Therapeutics' CFO to leave, drugmaker to lay off over 165 employees
Adds details on CFO leaving company in paragraphs 1, 3 and background in paragraphs 8-10
Oct 17 (Reuters) -Sage Therapeutics SAGE.O said on Thursday its finance chief will leave the company and the drugmaker plans to lay off more than 165 employees as part of a reorganization plan that aims to focus on the launch of its postpartum depression pill.
The company's workforce reductions include about 55% of its research and development team, as well as changes to its top management.
Sage's Chief Financial Officer Kimi Iguchi will leave the company, while Chief Business Officer Chris Benecchi will take on the role of chief operating officer, the company said.
The drugmaker plans to prioritize the launch of its postpartum depression pill Zurzuvae, that has been jointly developed with Biogen BIIB.O.
Last year, the U.S. Food and Drug Administration approved Zurzuvae for postpartum depression but rejected it as a treatment for clinical depression, a much larger market.
Sage said on Thursday it will also focus on developing its experimental drug dalzanemdor for Huntington's disease, which causes nerve cells in the brain to decay over time.
The company forecast a non-recurring charge of about $26 million to $28 million associated with the reorganizations, that will primarily be incurred in the fourth quarter of 2024.
Sage expects to report data from a trial testing dalzanemdor as a treatment for Huntington's disease later this year.
Earlier this month, the drugmaker said it would stop developing dalzanemdor for Alzheimer's disease after it failed to meet the main goal of a late-stage trial.
The company previously stopped developing dalzanemdor as a treatment for Parkinson's disease.
Reporting by Sriparna Roy in Bengaluru; Editing by Shounak Dasgupta
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