Sage Therapeutics to Lay Off All 338 Employees Following Supernus Acquisition

Sage Therapeutics will lay off all 338 employees following its $561M acquisition by Supernus. Discover how the deal, centered on Zurzuvae, impacts biotech jobs and drug pipelines.
In a move that’s sending ripples through the biotech sector, Sage Therapeutics has announced the termination of all 338 employees—just 11 days after its planned acquisition by Supernus Pharmaceuticals was made public. The layoffs, disclosed in a Massachusetts WARN Act filing, are scheduled to take effect on August 22.
The layoffs include 98 employees from research and development (R&D) and 240 from general and administrative functions, according to Sage’s first-quarter financial filings. This full-scale reduction confirms that Supernus’ interest in Sage was primarily strategic—focused on its assets, not its people.

Maryland-based Supernus Pharmaceuticals is acquiring Sage for a $561 million upfront payment, with an additional contingent value right (CVR) that could bring the total deal value to $795 million, depending on regulatory and commercial milestones.
Sage’s flagship product, Zurzuvae, a treatment for postpartum depression (PPD) developed in partnership with Biogen, is considered the crown jewel in this deal. The drug received FDA approval in August 2023, but failed to gain approval for a broader indication in major depressive disorder (MDD)—a setback that triggered a previous round of layoffs affecting 40% of Sage’s workforce last October.
Despite the MDD setback, Zurzuvae’s performance in the PPD market has been strong, with 21% sequential sales growth from Q4 2024 to Q1 2025, and generating $13.8 million in partnership revenue for Sage from Biogen.
Sage noted in a regulatory filing Q&A that it would offer severance packages, healthcare benefits, and outplacement services to affected employees. However, the company stated that no layoffs would be executed before the acquisition closes, expected in Q3 2025.
Importantly, under U.S. Department of Labor guidelines, an acquisition alone does not require WARN Act notification unless there are job losses. With this mass layoff confirmed, it signals a full reset of Sage’s operational structure under Supernus ownership.
The rapid layoffs underscore that Supernus was primarily targeting Sage’s drug assets—particularly Zurzuvae—not its personnel or infrastructure. Sage, once valued at over $9 billion, has seen a dramatic fall from grace following clinical setbacks and strategic pipeline cuts.

Earlier this year, Biogen reportedly offered $7.22 per share to acquire Sage. Supernus closed the deal with a higher upfront bid of $8.50 per share, potentially rising to $12.00 depending on CVR-triggered outcomes.
The full-scale layoff of Sage’s workforce paints a stark picture of the evolving biotech M&A landscape—where strategic assets may outlive the teams that built them. With Zurzuvae now under Supernus’ control, the future of Sage’s former innovations may continue—but not its people.