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INANCIAL RESULTS FOR THE FOURTH QUARTER AND FULL YEAR 2021

Cash Position: Cash, cash equivalents and marketable securities as of December 31, 2021 were $1.7 billion compared to $1.8 billion at September 30, 2021.

Revenue: Net revenue from sales of ZULRESSO was $1.6 million in the fourth quarter of 2021 compared to $1.7 million in the same period of 2020. For the year ended December 31, 2021, net revenue from sales of ZULRESSO was $6.3 million compared to $6.7 million in the same period of 2020. Additionally, in the fourth quarter of 2020, Sage recorded $1.1 billion of collaboration revenue from Biogen that consisted of an upfront payment of $875 million plus $232.5 million in excess proceeds from the equity investment under the stock purchase agreement.

R&D Expenses: Research and development expenses were $75.4 million, including $9.1 million of non-cash stock-based compensation expense, in the fourth quarter of 2021 compared to $81.7 million, including $10.1 million of non-cash stock-based compensation expense, for the same period in 2020. For the year ended December 31, 2021, R&D expenses were $283.2 million, including $49.7 million of non-cash stock-based compensation expense, compared to $292.7 million, including $42.4 million of non-cash stock-based compensation expense, for the same period in 2020. For the year, the decrease in R&D expenses was primarily due to the reimbursement from Biogen of $79.8 million pursuant to the Sage/Biogen Collaboration and License Agreement, partially offset by an increase in spending of $70.3 million. The increase in spending was mainly attributable to increased spending on zuranolone and Sage’s wholly owned pipeline including SAGE-718 and other programs. For the year, non-cash stock-based compensation expense increased because the Company incurred $9.8 million of expense in 2021 due to the achievement of milestones for certain outstanding performance restricted stock units and incurred no expense for such grants in 2020.

SG&A Expenses: Selling, general and administrative expenses were $51.6 million, including $11.5 million of non-cash stock-based compensation expense, in the fourth quarter of 2021 compared to $53.5 million, including $10.6 million of non-cash stock-based compensation expense, for the same period in 2020. For the year ended December 31, 2021, SG&A expenses were $183.5 million, including $54.9 million of non-cash stock-based compensation expense, compared to $197.0 million, including $51.8 million of non-cash stock-based compensation expense, for the same period in 2020. For the year, the decrease in SG&A expenses was primarily due to the reimbursement from Biogen of $11.3 million pursuant to the Sage/Biogen Collaboration and License Agreement, along with the impact of the restructuring that the Company announced during the second quarter of 2020. For the year, non-cash stock-based compensation expense increased because the Company incurred $6.7 million of expense in 2021 due to the achievement of milestones for certain outstanding performance restricted stock units and incurred no expense for such grants in 2020.

Net Income (loss): Net loss was $124.7 million for the fourth quarter of 2021 compared to net income of $974.9 million for the same period in 2020. For the year ended December 31, 2021, net loss was $457.9 million compared to net income of $606.1 million for the same period in 2020. In both periods, the decrease was due to the collaboration revenue from Biogen.

FINANCIAL GUIDANCE

Sage anticipates cash, cash equivalents and marketable securities of approximately $1.3 billion at the end of 2022.
The Company does not anticipate receipt of any milestone payments from collaborations in 2022.
The Company believes its cash and cash equivalents, ongoing collaboration funding, and potential revenue, will support its operations into 2025.

Conference Call Information

Sage will host a conference call and webcast today, Thursday, February 24, at 8:00 a.m. ET to discuss its fourth quarter and full year 2021 financial results and recent corporate updates. The live webcast can be accessed on the investor page of Sage's website at investor.sagerx.com. A replay of the webcast will be available on Sage's website approximately two hours after the completion of the event and will be archived for up to 30 days.

About Sage Therapeutics

Sage Therapeutics is a biopharmaceutical company fearlessly leading the way to create a world with better brain health. Our mission is to pioneer solutions to deliver life-changing brain health medicines, so every person can thrive. For more information, please visit. www.sagerx.com.

https://investor.sagerx.com/news-releases/news-release-details/sage-therapeutics-announces-fourth-quarter-and-full-year-2021