SAGE Therapeutics Inc (SAGE) – Debunking Asclepia Capital's "Scientific Response"

SAGE Therapeutics Inc (SAGE) - Debunking Asclepia Capital's "Scientific Response" by Kerrisdale Capital

Disclosure

We are short shares of SAGE Therapeutics Inc. Please click here to read full disclosures.

In the wake of our report on Sage Therapeutics, Asclepia Capital, a biotech-focused hedge fund, released a seven-page response purporting to “debunk” what it characterized as our “superficial analysis.” While we always appreciate substantive criticism, we disagree with all of Asclepia’s key points, which we address one by one below.

It’s also worth noting what Asclepia does not discuss. It offers no explanation for why SAGE-547 would outperform placebo in Phase 3 despite the weakness of the drug’s mechanism of action, and it doesn’t even mention, let alone refute,...