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New York hedge fund Kerrisdale Capital is betting on the failure of Sage Therapeutics’ (SAGE) drug for severe epilepsy with results from a phase 3 clinical trial expected next month.

“We are short Sage going into the trial because nothing has changed from our original thesis,” Kerrisdale founder and Chief Investment Officer Sahm Adrangi told me Friday.


Adrangi is referring to Sage’s phase 3 clinical trial of brexanolone in patients with super-refractory status epilepticus, a form of epilepsy so severe that patients must be put into a coma to stop their seizures. The readout from the study is expected before the end of September. [An in-depth preview of the Sage SRSE study can be read here.]

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