Ladenburg downgrades Sage Therapeutics on lack of near-term catalysts

Ladenburg analyst Michael Higgins downgraded Sage Therapeutics to Neutral from Buy with a price target of $60, down from $120. After plummeting yesterday, the stock in early trading is up 2.5% to $61.70. The analyst sees a lack of near-term catalysts for the shares after the company’s Mountain study failed in major depressive disorder. He doubts the FDA will encourage Sage to file for approval based on the data. In addition, it may take another round of Phase 3 trials to define the appropriate dosing of SAGE-217, Higgins tells investors in a research note. The analyst, who has “little doubt” that SAGE-217 can effectively treat depressed patients, believes specific patient, dosing regimen, depressive disorder and retreatment cycle will likely need to be defined in another round of studies than those currently underway.