Biogen Inks $3 Billion Deal With Sage to Jointly Develop Drugs

Biogen Inc. signed a deal with Sage Therapeutics Inc. worth as much as $3.1 billion to jointly develop and market drugs for depression and movement disorders.

Sage will receive $1.53 billion in cash that includes an upfront payment of $875 million and a $650 million equity investment, according to a statement from the companies on Friday. Sage will also be eligible to receive up to approximately $1.6 billion if the products reach certain development and commercial goals.

Under the agreement, the companies will work together on zuranolone, a potential antidepressant drug that has breakthrough therapy status from the U.S. Food ...