Zurzuvae will launch this year for postpartum depression, but US FDA rejection of the drug in major depressive disorder spurred Sage to cut R&D programs and jobs as it and partner Biogen evaluate next steps in MDD.

Public Company Edition: Sage will reveal cost reductions later in the third quarter after the US FDA approved zuranolone for the smaller of two depression indications. Also, Karyopharm revealed a 20% workforce reduction, Harmony accessed up to $185m in debt and Astellas invested $50m in Poseida.

The firms’ Zurzuvae has become the first oral drug to win US approval for postpartum depression but a thumbs down in the larger major depressive disorder indication has raised concerns that Biogen could pull out of the partnership as Sage turns its efforts to cutting costs.

Zurzuvae becomes first oral drug for postpartum depression but will need at least one additional study to enter larger major depressive disorder market after US FDA cites a lack of effectiveness. Continued MDD development in doubt with both Sage and partner Biogen in cost-cutting frame.