Sage Therapeutics Stock Headed for Best Day in 5 Years

SAGE is skyrocketing after Biogen's unsolicited buyout offer

Laura McCandless

Deputy Editor

Jan 13, 2025 at 11:16 AM

BIIB
SAGE

Biotech stock Sage Therapeutics Inc (NASDAQ:SAGE) is skyrocketing today, up 33.7% to trade at $7.42 at last glance, after Biogen's (BIIB) proposed takeover, which the company said on Friday it would carefully review. The biotech peer offered to buy Sage Therapeutics' remaining stake at $7.22 per share, or $442 million, in an unsolicited proposal. Both based in Cambridge, Massachusetts, the firms are partners on Zurzuvae, a drug for post-partum depression.

Today's sure has SAGE on track for its largest single-day percentage gain since January 2019. Though further removed from their Nov. 20 record low of $4.62, the shares are still down 72% year over year.

SAGE's typically quiet options pits are booming this morning. The stock has already seen 51 times its average daily options volume so far, with new positions being opened at the most popular contract -- the January 7.50 call. This is also the second most active open interest (OI) position.

Short covering could account for a portion of today's jump. Short interest represents 11.9% of SAGE's available float, and would take shorts nearly seven days to cover, at the stock's average pace of trading.

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