Often drugs and treatments for depression go a long way. But recent trials in post pregnancy, severe depression cases have resulted in 20% growth of shares for Sage Therapeutics (NASDAQ: SAGE). It is because 4 mothers who had depression reported signs of great well-being after taking their drug and medicine.
In case you are up for some early morning trade, SAGE is the best bet as it is now $90 and is expected to rise even more. Though thinly traded, this is an all time high for the pharma company as far as its tenure in the stock market is concerned.
Earlier Sage reported top line data from its phase 1/d study of SAGE-547 in postpartum depression. Cowen maintained an Outperform rating on Sage Therapeutics and raised its price target to $108.00. Earlier, Cowen expected the target of $95.00.
“We see this data as remarkably promising despite small numbers and open-label design. As a result, we add PPD to our valuation, increasing our PT from $95 to $108. We further think the data add credence to potential applications of SAGE’s GABA compounds on neuropsychiatric conditions,” said analyst Ritu Baral.
SAGE-547, the experimental wonder drug
A tiny pill has helped cure admitted mothers with severe depression cases. The rate of depression was over 24, which is when severe depression is reached. But in 60 hours of this experimentation with the drug has made the women, normal. The sudden improvement in their condition is a great sign that conditions that lasted several years can now be treated quickly. In case you are wondering how the stock prices rise, because the news spread and many people are betting on SAGE to develop more such products in the near future.
The trial had positive results and the company is trying to expand the trial to a larger preliminary testing. Individuals with the depression flock around the centers to see if they can get rid of their mental illness.