Sage Therapeutics (SAGE -0.23%), a biopharmaceutical company focused on developing medicines for brain health disorders, released its second quarter 2025 results on July 30, 2025. The most important news from the quarter was the significant revenue beat, as sales reached $31.7 million (GAAP) against analyst estimates of $16.8 million. This growth was fueled by accelerating uptake of ZURZUVAE, an oral therapy for postpartum depression. The company also narrowed its net loss, reporting improved earnings per share (EPS) of $(0.79) (GAAP) for Q2 2025, beating expectations for $(0.94). Overall, the company reported strong commercial momentum for ZURZUVAE, notable cost cuts in research and development (R&D), and continued investment in its commercial launch, while ongoing expenses and a reliance on a single product remain points of scrutiny.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | $(0.79) | $(0.94) | $(1.70) | 53.5% |
| Revenue (GAAP) | $31.7 million | $16.8 million | $8.7 million | 263.6% |
| Collaboration Revenue – ZURZUVAE | $23.2 million | $7.4 million | 213.5% | |
| R&D Expenses | $23.7 million | $62.6 million | (62.1%) | |
| SG&A Expenses | $62.0 million | $56.0 million | 10.7% |
Source: Analyst estimates for the quarter provided by FactSet.
Business overview and near-term focus
Sage Therapeutics develops medicines for disorders affecting the central nervous system with a focus on brain health conditions, such as depression and neurodevelopmental disorders. Its business centers around getting new treatments to market and expanding the clinical pipeline beyond the initial offering.
Recently, Sage Therapeutics has concentrated resources on commercializing ZURZUVAE, an oral, once-daily, 14-day treatment for postpartum depression. Building commercial momentum around this product, managing R&D spending, progressing early-stage candidates like SAGE-319, and leveraging its strategic partnership with Biogen are currently the most critical factors for success.
Quarter highlights: Revenue growth and commercial launch
Total revenue (GAAP) reached $31.7 million, beating expectations due to rapid uptake of ZURZUVAE. Collaboration revenue from ZURZUVAE climbed to $23.2 million, a sequential rise of 68%. Over 4,000 prescriptions were shipped, representing a 36% increase from the previous quarter, and, since launch in December 2023, more than 13,500 prescriptions have been delivered.
OBGYNs, or obstetrician-gynecologists, accounted for approximately 80% of all ZURZUVAE prescriptions. Importantly, about 80% of patients treated with ZURZUVAE were first-time recipients for postpartum depression, indicating that the therapy is reaching new patients, not just switching from other treatments. Greater than 95% of patients with commercial or Medicaid insurance now have access to ZURZUVAE, with the majority facing minimal prior authorization hurdles.
Cost management was also evident. R&D expenses were reduced by 62.1% compared to the same period in 2024, dropping to $23.7 million. The company reports this is due to restructuring steps, reprioritizing pipeline programs, and completion or cancellation of some clinical trials. In contrast, selling, general, and administrative (SG&A) expenses rose to $62.0 million, a 10.7% increase compared to the same period in 2024, mostly as a result of expanded commercialization and professional fees related to a pending acquisition.
ZURZUVAE, a once-daily oral therapy specifically for postpartum depression, is the current commercial focus. Pipeline products remained early stage, with little near-term revenue or development milestones. For example, SAGE-319, a potential treatment for behavioral symptoms in neurodevelopmental disorders, is undergoing early clinical trials, with more data expected late in the year.
Material events, pipeline progress, and financial position
The company’s reliance on ZURZUVAE was highlighted by the fade-out of other product revenues and the escalating investment in marketing and commercialization. There were no material product launches beyond ZURZUVAE during the quarter. The only notable non-recurring impact on profitability was a negative $0.1 million cost of revenues due to a reversal of previously accrued regulatory expenses.
Strategic developments included the previously announced acquisition of Sage Therapeutics by Supernus Pharmaceuticals, expected to close in the third quarter. The transaction includes $8.50 per share in cash and the potential for additional payments tied to commercial milestones, which introduces some strategic uncertainty. Meanwhile, the joint commercialization agreement with Biogen continued as before, with Sage recognizing 50% of net collaboration revenue from US sales of ZURZUVAE.
The company ended June 30, 2025, with $366 million in cash and equivalents, compared to $424 million three months earlier. This ongoing cash burn is expected given the scale of launch investments. Sage has previously stated this cash should last into mid-2027, assuming no major shifts in pipeline spending or milestone payments.
Dividends were not declared or changed. SAGE does not currently pay a dividend.
Looking ahead: Financial outlook and key watch items
Sage Therapeutics did not provide quantitative forward guidance in this earnings release, and, due to the pending transaction and the lack of an earnings call, management declined to offer earnings or revenue projections for future periods.
With no detailed guidance, investors will need to monitor the pace of ZURZUVAE prescription growth, the efficiency of ongoing expense management, and progress in advancing the next phase of the clinical pipeline. The success of ZURZUVAE’s commercialization and any tangible progress in pipeline candidates like SAGE-319 or SAGE-324 will continue to define performance in the quarters ahead.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
