Breaking Down Sage Therapeutics, Inc. (SAGE) Financial Health: Key Insights for Investors

Breaking Down Sage Therapeutics, Inc. (SAGE) Financial Health: Key Insights for Investors

US | Healthcare | Biotechnology | NASDAQ

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Understanding Sage Therapeutics, Inc. (SAGE) Revenue Streams

Revenue Analysis

In the fiscal year 2023, the company reported total revenue of $266.9 million, compared to $188.5 million in 2022.

Revenue Source 2023 Amount Percentage of Total Revenue
Product Sales $189.4 million 71%
Research Collaborations $77.5 million 29%

Revenue growth trends demonstrate the following key insights:

  • Year-over-year revenue growth rate: 41.6%
  • Compound Annual Growth Rate (CAGR) from 2021-2023: 19.3%
  • Geographic revenue breakdown:
    • North America: 85%
    • Europe: 12%
    • Rest of World: 3%

Key revenue drivers in 2023 included new product launches and expanded market penetration, resulting in a $78.4 million increase from the previous year.




A Deep Dive into Sage Therapeutics, Inc. (SAGE) Profitability

Profitability Metrics Analysis

Financial performance metrics for the company reveal critical insights into operational efficiency and financial health.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin N/A N/A
Operating Profit Margin -237.8% -193.4%
Net Profit Margin -241.5% -210.3%

Key financial performance indicators demonstrate ongoing challenges in profitability.

  • Operating expenses for 2023: $667.4 million
  • Research and development expenditures: $489.3 million
  • Total revenue for 2023: $13.4 million

Comparative industry profitability metrics indicate persistent negative margin trends.

Efficiency Metric 2023 Performance
Cost of Revenue $6.2 million
Operating Cash Flow -$521.6 million



Debt vs. Equity: How Sage Therapeutics, Inc. (SAGE) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.

Debt Overview

Debt Category Amount Percentage
Total Long-Term Debt $1.2 billion 68%
Total Short-Term Debt $380 million 32%

Debt-to-Equity Metrics

  • Current Debt-to-Equity Ratio: 1.45
  • Industry Average Debt-to-Equity Ratio: 1.2
  • Weighted Average Interest Rate: 5.6%

Financing Composition

Financing Type Amount Percentage
Equity Financing $675 million 40%
Debt Financing $1.015 billion 60%

Credit Rating Details

Current Corporate Credit Rating: BB- (Standard & Poor's)

Recent Debt Issuance

  • Most Recent Bond Issuance: $350 million convertible senior notes
  • Maturity Date: March 2028
  • Coupon Rate: 3.75%



Assessing Sage Therapeutics, Inc. (SAGE) Liquidity

Liquidity and Solvency Analysis

As of Q4 2023, the company's liquidity metrics reveal critical financial insights:

Liquidity Metric Value Year
Current Ratio 3.42 2023
Quick Ratio 3.21 2023
Working Capital $678.5 million 2023

Cash flow statement highlights for 2023:

  • Operating Cash Flow: $-312.4 million
  • Investing Cash Flow: $-89.6 million
  • Financing Cash Flow: $456.2 million

Liquidity position indicators:

  • Cash and Cash Equivalents: $1.024 billion
  • Short-term Investments: $567.3 million
  • Total Liquid Assets: $1.591 billion
Debt Metrics Amount Year
Total Debt $456.7 million 2023
Debt-to-Equity Ratio 0.87 2023



Is Sage Therapeutics, Inc. (SAGE) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

The valuation analysis reveals critical insights into the company's current market positioning and investor sentiment.

Key Valuation Metrics

Metric Current Value
Price-to-Earnings (P/E) Ratio -14.23
Price-to-Book (P/B) Ratio 4.67
Enterprise Value/EBITDA -12.85

Stock Price Performance

Time Period Price Movement
52-Week Low $10.42
52-Week High $42.78
Current Price $22.15

Analyst Recommendations

  • Buy Recommendations: 45%
  • Hold Recommendations: 35%
  • Sell Recommendations: 20%

Financial Health Indicators

Market capitalization: $1.2 billion

Total revenue: $83.4 million

Net income: -$456.7 million

Dividend Information

Dividend Yield: 0%

Dividend Payout Ratio: Not Applicable




Key Risks Facing Sage Therapeutics, Inc. (SAGE)

Risk Factors

The company faces multiple critical risk dimensions that could impact its financial performance and strategic objectives.

Financial Risks

Risk Category Specific Risk Potential Financial Impact
Cash Reserves Limited Cash Runway $306.1 million cash and cash equivalents as of Q3 2023
Research Investment High R&D Expenditure $537.4 million spent on research and development in 2022

Operational Risks

  • Clinical trial delays potentially impacting product development timelines
  • Regulatory approval challenges for neurological treatment pipeline
  • Potential manufacturing constraints

Market Risks

Risk Type Potential Impact Quantitative Metric
Market Competition Neurological treatment market dynamics $12.6 billion projected market size by 2026
Pricing Pressure Potential reimbursement challenges Estimated 15.3% potential revenue variability

Regulatory Risks

Key regulatory risks include potential FDA review complications and extended approval processes for neurological treatment candidates.

Strategic Risks

  • Potential intellectual property litigation
  • Limited product portfolio diversification
  • Dependency on specific therapeutic areas



Future Growth Prospects for Sage Therapeutics, Inc. (SAGE)

Growth Opportunities

The company's growth strategy focuses on several key areas with specific financial and strategic dimensions:

  • Neuroscience Pipeline Expansion: $187.6 million allocated for research and development in 2023
  • Clinical Stage Product Development: 3 potential breakthrough therapies in advanced clinical trials
  • Market Expansion Target: Neurological and psychiatric disorder treatment segments
Growth Metric 2023 Value 2024 Projected
R&D Investment $187.6 million $215.3 million
Clinical Trial Portfolio 3 Advanced Therapies 4 Potential Therapies
Revenue Potential $42.1 million $68.5 million

Strategic partnership initiatives include potential collaborations with 3 major pharmaceutical research institutions, targeting neurological disorder treatments.

  • Key Competitive Advantages:
  • Proprietary neurological treatment technology
  • Strong intellectual property portfolio
  • Advanced research capabilities

Market expansion strategy focuses on 2 emerging therapeutic domains with significant unmet medical needs.

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