Sage Therapeutics, a Massachusetts-based drugmaker that faced a costly setback in December, will cut 53 percent of its workforce in an effort to save money.
The drugmaker will cut 340 jobs, which is expected to save $170 million annually. A majority of the job cuts will affect the commercial operations of its postpartum depression drug Zulresso.
In December, Sage faced a significant setback after a disappointing Phase 3 clinical trial for its depression drug called zuranolone, or SAGE-217, according to Stat. The results cut more than $6 billion from its market value.
Sage expects to incur a one-time charge of $31 million due to the reduction of workforce, but expects to be able to sustain operations through 2022 with the cuts.
"The headwinds we are facing individually and collectively, along with a recognition of our need to move forward as a company, have led to this difficult decision. We believe this cost reduction and reallocation of resources will help Sage advance our portfolio in a way that is consistent with our mission of delivering medicines that matter to people with serious brain health disorders," said Jeff Jonas, MD, CEO of Sage Therapeutics.