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SAGE Therapeutics’ Strategic Collaboration with Shionogi

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SAGE Therapeutics

On June 13, SAGE Therapeutics (SAGE) announced a strategic collaboration with Shionogi & Company for the development and commercialization of the drug SAGE-217. Let’s take a look at the details of the collaboration.

The chart above shows the highlights of the collaboration between SAGE and Shionogi.

About the collaboration

As discussed, SAGE has announced a strategic collaboration with Shionogi, under which Shionogi gets the clinical development, regulatory filings, and marketing rights for SAGE-217 for the treatment of major depressive disorder and other indications in Japan, Taiwan, and South Korea.

SAGE will receive an up-front payment of $90 million from Shionogi, and it will also be eligible to receive development and commercialization milestone payments of up to $485 million. Further, SAGE will receive tiered royalties on the sales of SAGE-217 in Japanese, Taiwanese, and South Korean markets.

SAGE will maintain its exclusive development and commercialization rights on SAGE-217 outside Japan, Taiwan, and South Korea.

About SAGE-217

SAGE Therapeutics’ SAGE-217 is a GABAA receptor and is in Phase 3 of development for the treatment of major depressive disorder and postpartum depression. It’s also in Phase 2 development for the treatment of insomnia and bipolar depression.

The FDA granted a breakthrough therapy designation to SAGE-217 for the treatment of major depressive disorder in February.

On June 12, SAGE announced its expedited development plan for SAGE-217. The plan includes an additional Phase 3 pivotal study of SAGE-217’s use in the treatment of major depressive disorder, and it’s set to start during the second half of 2018. The plan also includes an ongoing pivotal study of SAGE-217’s use in treating women with postpartum depression.

The iShares Evolved US Innovative Healthcare ETF (IEIH) holds 0.6% of its total investments in SAGE Therapeutics (SAGE), 5.7% in AbbVie (ABBV), 6.5% in Pfizer (PFE), and 4.8% in Gilead Sciences (GILD).

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