The Sage Group plc (LON: SGE) share price has fallen by almost 4% today after the software company announced its full-year results for the year ended 30 September 2020. The group reported a 5.4% increase in revenue to £2.93 billion, while adjusted operating profit rose by 9.1% to £602 million. However, these results were below analyst expectations, with Sage’s guidance for the current year also coming in below expectations.
Sage Group plc is a multinational enterprise software company headquartered in Newcastle upon Tyne, United Kingdom. It is the world’s third-largest supplier of enterprise resource planning software, the largest supplier to small businesses, and has 6.1 million customers worldwide. The company is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index until 20 April 2020 at which point it was replaced by Ocado Group.
Sage Therapeutics is a clinical-stage biopharmaceutical company committed to developing and commercializing novel medicines to treat central nervous system (CNS) disorders. Our mission is to transform the lives of patients and families suffering from devastating CNS disorders by delivering innovative, life-changing therapies.
We are currently advancing three programs in clinical development: two for rare epilepsies – SAGE-547 for super-refractory status epilepticus (SRSE) and SAGE-217 for major depressive disorder (MDD), as well as our lead program, brexanolone, for postpartum depression (PPD).
We have also created a robust pipeline of new molecules targeting other serious CNS disorders. The need for new treatment options for CNS disorders is great. Current treatments are often inadequate, with only 30% or less of patients achieving satisfactory symptom relief.
And, many existing treatments come with significant side effects that can be as debilitating as the disease itself. There is a real opportunity to improve patient care by developing novel therapeutics that are more effective and have fewer side effects than current treatments. Our approach is built on deep scientific understanding of neuronal communication coupled with cutting-edge technologies.
This has allowed us to develop a broad portfolio of product candidates that target various mechanisms involved in neurotransmission. We are taking an integrative approach to drug development, applying insights from multiple disciplines including neuroscience, medicinal chemistry, pharmacology and translational medicine. This allows us to create best-in-class molecules targeting key mechanisms across several therapeutic areas within the CNS.
The first step in our process is discovery where we use cutting edge techniques such as high throughput screening and next generation sequencing coupled with strong computational capabilities and advances in machine learning algorithms to identify small molecule modulators of desired targets involved in disease pathophysiology . Once we identify hits against our targets of interest , we validate them through multiple biological assays before moving into lead optimization . In parallel with target validation , we also work on identifying appropriate biomarkers which could be used not just at pivotal stage but also potentially in early phase studies or even during routine clinical practice post approval .
Such biomarkers help not just with go / no go decisions but also assist with dose selection , proof of mechanism etc . After optimizing leads through medicinal chemistry efforts combined with detailed preclinical characterization , we take candidates into IND enabling studies followed by Phase 1 trials in healthy volunteers .
Is Sage a Buy Or Sell?
If you’re looking at Sage (Nasdaq: SAGE) as a potential investment, the question of whether it’s a buy or sell can be difficult to answer. The business software company has had its share of ups and downs over the years, and its current financial situation is somewhat mixed. However, there are some factors that suggest Sage could be a good investment opportunity.
For one thing, Sage’s revenue and earnings have been growing steadily in recent years. In fiscal 2018, the company posted revenue of $1.43 billion, up from $1.36 billion in fiscal 2017. Earnings per share also rose from $0.72 to $0.78 over the same period.
This growth is encouraging, particularly given that many other software companies have struggled in recent years as customers move to cloud-based solutions. Another positive for Sage is its strong cash flow generation. The company generated nearly $400 million in operating cash flow in fiscal 2018, which was more than enough to cover its dividend payments and capital expenditures.
This gives Sage plenty of financial flexibility to pursue growth opportunities or make acquisitions if it wants to do so. Finally, Sage shares look relatively cheap right now based on their earnings power. The stock trades at around 20 times trailing twelve-month earnings, which is below the average price-to-earnings ratio for the software industry as a whole.
Does Sage Pay a Dividend?
If you’re looking for a company that pays dividends, sage is not the right pick. The company does not currently offer shareholders any dividend payments. While this could change in the future, there’s no guarantee that it will.
So, if you’re interested in investing in sage, you should do so with the understanding that you may not receive any dividend income from your investment.
Why Have Sage Shares Dropped?
On January 10, 2019, Sage Therapeutics announced that its experimental Alzheimer’s disease drug, elagolix, had failed in a clinical trial. The news sent Sage’s stock plunging 30% in after-hours trading.
There are many reasons why a company’s stock price can drop suddenly.
In the case of Sage Therapeutics, the main reason was disappointing news about one of its key experimental drugs. Elagolix was being tested as a potential treatment for Alzheimer’s disease, but the clinical trial results showed that it was not effective at slowing the progression of the disease. This was obviously bad news for Sage and investors responded by selling off the stock.
This is not unusual; when a company announces negative news about a key product, its stock price will usually drop sharply. In this case, Sage’s stock dropped by 30%. Of course, there are other factors that can affect a company’s stock price besides just news about its products.
For example, economic conditions and changes in the overall market can also impact share prices. However, in this particular instance, it appears that the main reason for Sage’s share price decline was the disappointing news about elagolix.
Is Sage Therapeutics a Good Investment?
Sage Therapeutics (SAGE) is a clinical-stage biopharmaceutical company focused on developing and commercializing novel medicines to treat central nervous system (CNS) disorders. The company’s lead product candidate, brexanolone, is in Phase III clinical trials for the treatment of postpartum depression (PPD).
The market opportunity for PPD is significant.
According to Sage, there are more than 500,000 women who experience PPD each year in the United States alone. If approved, brexanolone would be the first and only FDA-approved medication specifically indicated for the treatment of PPD. Sage has already completed two successful Phase III clinical trials of brexanolone in patients with PPD.
The results from these trials were strong, with patients treated with brexanolone showing a statistically significant improvement in their symptoms compared to placebo. Based on these data, Sage submitted a New Drug Application (NDA) to the FDA for approval of brexanolone in December 2017. The FDA is currently reviewing the NDA and has set a target action date of October 5, 2018.
If approved, Sage plans to launch brexanolone in early 2019.
Sage Share Price Forecast – SGE Sage Share Price Projection and Analysis
The Sage Group plc is a British multinational software company headquartered in Newcastle upon Tyne, United Kingdom. It is the world’s third-largest supplier of enterprise resource planning software (behind Oracle and Microsoft), the largest supplier to small businesses, and has six million customers worldwide.