Supernus To Acquire Sage: A Smart Move, Despite Both Pharmas' MDD Woes

(12min)

Summary

  • Supernus Pharmaceuticals is acquiring Sage Therapeutics for $8.5/share plus up to $3.5/share in CVRs tied to Zurzuvae sales milestones.
  • The deal diversifies Supernus' CNS portfolio, offsets revenue declines from patent expiries, and is expected to be accretive to 2025 earnings.
  • Despite past failures in MDD, Zurzuvae's PPD approval and potential in new markets offer upside, especially with Biogen partnership synergies.
  • I view the SAGE acquisition as a proactive, positive move for SUPN, positioning the company for growth and new opportunities in CNS therapeutics.

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Investment Overview

This morning, Supernus Pharmaceuticals, Inc. (NASDAQ:SUPN), the Rockville, Maryland based commercial stage Pharma company, specializing in central nervous system ("CNS") disorders, announced the proposed acquisition of Sage Therapeutics, Inc.

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This article was written by

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Edmund Ingham is a biotech consultant. He has been covering biotech, healthcare, and pharma for over 5 years, and has put together detailed reports of over 1,000 companies. He leads the investing group Haggerston BioHealth.

The group is for both novice and experienced biotech investors. It provides catalysts to look out for and buy and sell ratings. It also provides product sales and forecasts for all the Big Pharmas, forecasting, integrated financial statements, discounted cash flow analysis and market by market analysis. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of SAGE, SUPN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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