Sage Therapeutics and Shionogi & Co., Ltd., Enter Strategic Collaboration to Develop and Commercialize SAGE-217 for MDD and Other Indications in Japan, Taiwan and South Korea

Collaboration intended to accelerate development of SAGE-217 in key
Asian markets
and supports Sage’s mission to bring
transformational medicines to patients around the world

Collaboration supports Shionogi’s vision of creating a more vigorous
society by exploring the potential to provide relief from the
psychological uncertainty of depression with a novel treatment paradigm

CAMBRIDGE, Mass. & OASAKA, Japan–(BUSINESS WIRE)–Sage Therapeutics (NASDAQ: SAGE), a clinical-stage biopharmaceutical
company developing novel medicines to treat life-altering central
nervous system (CNS) disorders, and Shionogi & Co., Ltd., today
announced they have entered into a strategic collaboration for the
clinical development and commercialization of SAGE-217 for the treatment
of major depressive disorder (MDD) and other indications in Japan,
Taiwan and South Korea. Sage received Breakthrough Therapy Designation
from the U.S. Food and Drug Administration (FDA) for SAGE-217 in MDD in
February 2018, and recently announced an expedited development plan for
SAGE-217 in the U.S. with a pivotal Phase 3 placebo-controlled trial in
patients with MDD expected to commence this year, and an ongoing
placebo-controlled trial in women with PPD, now also designated a
pivotal trial. The goal of the collaboration is to accelerate
development of a potentially groundbreaking medicine to patients in key
Asian markets.

Under the terms of the agreement, Shionogi will be responsible for all
clinical development, regulatory filings and commercialization of
SAGE-217 for MDD, and potentially other indications, in Japan, Taiwan
and South Korea. Shionogi will make an upfront payment to Sage of $90
million, and Sage will be eligible to receive additional development and
commercial milestones of up to $485 million. Sage will receive tiered
royalties on sales of SAGE-217 in Japan, Taiwan and South Korea, if
development efforts are successful, with tiers averaging in the greater
than 20 percent range, subject to other terms of the agreement. Shionogi
has also granted Sage certain rights to co-promote SAGE-217 in Japan
across all indications. Sage maintains exclusive rights to develop and
commercialize SAGE-217 outside of Japan, Taiwan and South Korea.

“We are pleased to collaborate with Shionogi, a company that shares our
excitement at the opportunity to work together to accelerate development
and broaden geographic access to a potentially paradigm-shifting
treatment for depression,” said Jeff Jonas, M.D., chief executive
officer of Sage. “Shionogi is a well-regarded commercial leader in mood
disorders in the Asian market. By working together, we believe we can
expand the global footprint for SAGE-217 alongside our ongoing efforts
in the U.S. and E.U. As we have always said, our goal is to build a
fully-integrated, multi-national biopharmaceutical company and this
collaboration moves us another step closer to achieving the goal.”

“This collaboration, if successful, will enable us to move one step
closer in realizing a more vigorous society in which patients in need
are provided the potential for relief from the psychological uncertainty
of depression allowing the possibility of fulfillment of one’s innate
ability. In addition, the compound will allow us to build up and
strenghthen the psychiatry presence that we have built through Cymbalta
and Intuniv,” said Dr. Isao Teshirogi, President and Chief Executive
Officer, Shionogi & Co., Ltd.

About SAGE-217
SAGE-217 is a next generation positive
allosteric modulator that has been optimized for selectivity to synaptic
and extrasynaptic GABAA receptors and a pharmacokinetic
profile intended for daily oral dosing. The GABA system is the major
inhibitory signaling pathway of the brain and CNS, and contributes
significantly to regulating CNS function. SAGE-217 is currently being
developed for MDD and certain other mood and movement disorders.

Sage received Breakthrough Therapy Designation from the FDA for SAGE-217
in MDD in February 2018. The Breakthrough Therapy Designation is
intended to offer a potentially expedited development path and review in
the U.S. for promising drug candidates, which includes increased
interaction and guidance from the FDA. This regulatory decision was
based primarily on the positive results from the Phase 2,
placebo-controlled trial of SAGE-217 in 89 adult patients with moderate
to severe MDD. In the trial, SAGE-217 met the primary endpoint with a
statistically significant mean reduction in the Hamilton Rating Scale
for Depression (HAM-D) 17-item total score from baseline at Day 15 in
the SAGE-217 group, compared to placebo (p<0.0001). Statistically significant improvements were observed in the HAM-D score compared to placebo by the morning following the first dose through Week 4 and the effects of SAGE-217 remained numerically greater than placebo through the end of follow-up at Week 6. SAGE-217 was generally well-tolerated. The most common adverse events in the SAGE-217 group were headache, dizziness, nausea, and somnolence.

About Sage Therapeutics
Sage Therapeutics is a
clinical-stage biopharmaceutical company committed to developing novel
medicines to transform the lives of patients with life-altering CNS
disorders. Sage has a portfolio of novel product candidates targeting
critical CNS receptor systems, GABAA and NMDA. Sage’s lead
program, a proprietary IV formulation of brexanolone (SAGE-547), has
completed Phase 3 clinical development for postpartum depression and a
New Drug Application is currently under review with the U.S. Food and
Drug Administration. Sage is developing its next generation modulators,
including SAGE-217 and SAGE-718, in various CNS disorders. For more
information, please visit

About Shionogi & Co., Ltd.
Shionogi & Co., Ltd. is a
major research-driven pharmaceutical company dedicated to bringing
benefits to patients based on its corporate philosophy of “supplying the
best possible medicine to protect the health and wellbeing of the
patients we serve.” Shionogi’s research and development currently
targets two therapeutic areas: infectious diseases, and pain/CNS
disorders. For over 50 years, Shionogi has developed and commercialized
innovative oral and parenteral anti-infectives. In addition, Shionogi is
engaged in new research areas, such as obesity/geriatric metabolic
diseases and oncology/immunology. Contributing to the health and QOL of
patients around the world through development in these therapeutic areas
is Shionogi’s primary goal. For more details, please visit

Forward-Looking Statements
Various statements in this
release are “forward-looking” statements, including without limitation,
statements as to: the potential for expedited development of SAGE-217 in
MDD and PPD; the timing of planned clinical activities related to
SAGE-217; the potential of SAGE-217 to be a paradigm shift in the
treatment of depression; the potential for successful development and
commercialization of SAGE-217 in the U.S. and in the Shionogi markets;
and expectations for future milestones and royalties under the
collaboration. These forward-looking statements are neither promises nor
guarantees of future performance, and are subject to a variety of risks
and uncertainties which could cause actual results to differ materially
from those contemplated in these forward-looking statements, including
the risks that: expedited development and review of SAGE-217 may not be
achieved in any market; regulatory authorities in the U.S. or in the
Shionogi markets may decide that the design or results of the SAGE-217
clinical program are not sufficient for regulatory approval in MDD, PPD
or any other indication; development of SAGE-217 may not be successful
in any indication; success in non-clinical studies or in earlier stage
clinical trials may not be repeated or observed in ongoing or future
studies which may not support further development or be sufficient to
gain regulatory approval to market the product; adverse events may be
encountered at any stage of development that negatively impact further
development; and even if development efforts are successful there may be
events that limit market potential or trigger reductions in milestones
or royalties. Other risks and uncertainties include, but are not limited
to, issues related to: adverse outcome of important litigation; domestic
and foreign healthcare reforms and changes of laws and regulations;
general industry and market conditions; changes in interest rates and
currency exchange rates; manufacturing and marketing risks, which
include, but are not limited to, inability to build production capacity
to meet demand and unavailability of raw materials; entry of competitive
products; and other technical and other unexpected hurdles in the
development and manufacture of SAGE-217 as well as those risks more
fully discussed in the section entitled “Risk Factors” in Sage’s most
recent Quarterly Report on Form 10-Q, as well as discussions of
potential risks, uncertainties, and other important factors in either
company’s other filings with the Securities and Exchange Commission. In
addition, any forward-looking statements represent the companies views
only as of today, and should not be relied upon as representing their
views as of any subsequent date. The companies explicitly disclaim any
obligation to update any forward-looking statements.


Sage Therapeutics:
Paul Cox,
L. Suda, 585-355-1134
& Co., Ltd:

Corporate Communications Department,