Shares of SAGE Therapeutics Inc (NASDAQ:SAGE) surged after the results of a small, mid-stage study on major depressive disorder showed positive results. The upbeat results of the study for the drug sent the shares rising by over 12%.
The Phase II study by the Cambridge-based biotech company was conducted on 13 patients and has so far achieved its primary goal which was to assess the tolerability and safety of the drug. Consequently, the drug named SAGE-217 was found to be well-tolerated and generally safe. No adverse reactions were recorded in any of the patients and none of the patients had to be taken off the drug.
With regards to its efficacy, patients who took the drug were able to observe a decline in the symptoms of depression. Of the 13 patients, 11 of them saw their symptoms reduce by at least 50% while 8 of the patients were able to achieve remission.
Following the rise in the share price, the market capitalization of the 136-employee biotech firm rose from $1.77 billion to $1.99 billion.
The biotech company which focuses on central nervous system disorders has had a series of good news in the past few months. Following a small trial in July, the firm’s lead drug used to treat postpartum depression, SAGE-547, outperformed a placebo and is now in the third phase of the study. Results of that study are expected later in the year. If all goes well, it would be the first treatment for postpartum depression to be approved by the U.S. Food and Drug Administration.
Launched in October 2011, the biotech firm received financing from Third Rock Ventures amounting to $35 million. The biotech firm raised $90 million when it went public in July 2014. Last year in July, the firm had about 62 employees but the number has now more than doubled. In that period the share price has risen by almost 70 percent.
On Monday shares of SAGE Therapeutics Inc (NASDAQ:SAGE) jumped by 11.75 percent to close the day at $52.99.
Note: This article is written by Adam Russell and originally published at Market Exclusive.