NEW YORK, NY / ACCESSWIRE / March 28, 2016 / Pomerantz LLP is investigating claims on behalf of investors of Sage Therapeutics, Inc. ("Sage Therapeutics" or the "Company") (NASDAQ: SAGE). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 9980.
The investigation concerns whether Sage Therapeutics and certain of its officers and/or directors have violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
On March 23, 2016, Kerrisdale Capital published a report on Sage Therapeutics asserting that the company's lead experimental product candidate SAGE-547 - indicated for super-refractory status epilepticus (SRSE) - is not the novel breakthrough that Sage Therapeutics touted, as the product's high-level mechanism of action is exactly the same as that of standard drugs like benzodiazepines, anti-epileptics, and anesthetics, all of which are already used to treat SRSE. The Kerrisdale Capital report also asserts that Sage Therapeutics has potentially overestimated the size of the drug's target market by a factor of 6.
On this news, Sage Therapeutics stock fell $4.30 per share, or 12.87%, to close at $29.10 on March 23, 2016.
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SOURCE: Pomerantz LLP