Sage Therapeutics (SAGE, Financial) reported a significant drop in its stock price, falling more than 30% in pre-market trading. It later stabilized at an 11% decline. This drop followed the announcement that their Alzheimer's treatment drug, dalzanemdor (SAGE-718), failed to meet primary endpoints in a mid-stage trial.
The phase two LIGHTWAVE trial involved 174 participants diagnosed with mild cognitive impairment or mild dementia due to Alzheimer's disease. The trial aimed to measure the disease's impact compared to baseline, but the results showed no statistically significant differences.
As a result of the trial's disappointing outcome, the Cambridge, Massachusetts-based biotech firm has decided to cease the development of dalzanemdor for Alzheimer's treatment. However, they noted that no new safety concerns were raised, and the drug was well-tolerated by patients.
Meanwhile, Sage Therapeutics plans to release data from another mid-stage trial later this year, focusing on the drug's effect on Huntington's disease.
