Segment Information

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

Segment Information

15. Segment Information

Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company operates as a single reporting segment, focused on discovering, developing and delivering brain health medicines. The Company’s measure of segment profit or loss is net loss. The CODM is the chief executive officer (“CEO”). The CODM manages and allocates resources to the operations of the Company on a total company basis. Managing and allocating resources on a consolidated basis enables the CEO to assess the overall level of resources available and how to best deploy these resources across functions, therapeutic areas and research and development projects that are in line with the Company’s long-term company-wide strategic goals. Consistent with this decision-making process, the CEO uses consolidated financial information for purposes of evaluating performance, forecasting future period financial results, allocating resources and setting incentive targets. Operating expenses are used to monitor budget versus actual results. The CODM also uses net loss in competitive analysis by benchmarking to the Company’s peer group. The competitive analysis along with the monitoring of budgeted versus actual results are used in assessing performance of the segment. All the Company’s long-lived assets are held in the United States and all the Company’s revenues are derived from the United States.

The following table is representative of the significant expense categories regularly provided to the CODM when managing the Company’s single reporting segment. A reconciliation to the consolidated net loss for the years ended December 31, 2024, 2023 and 2022 is included at the bottom of the table below.

	Year Ended December 31,
	2024			2023			2022
	(in thousands)
Revenues	$	41,243		$	86,455		$	7,686
Cost of revenues		9,444			2,159			813
Program expenses (1)
ZULRESSO		5,101			4,395			17,083
zuranolone (ZURZUVAE)		30,482			94,174			68,155
SAGE-324		10,173			16,574			14,646
dalzanemdor (SAGE-718)		58,248			56,536			50,584
Other research and development programs		33,277			52,975			49,750
Non-program expenses (2)		85,405			113,388			96,825
People and staff augmentation		165,158			220,188			195,214
Restructuring		21,854			33,386			—
Other segment items (3)		22,767			34,169			47,400
Net loss	$	(400,666	)	$	(541,489	)	$	(532,784	)
(1) Includes external research and development, and selling, general and administrative expenses.
(2) Includes information technology, infrastructure, facilities, legal, commercial data and systems,
chemistry platform, intellectual property, and other general and administrative expense.
(3) Includes stock-based compensation expense, interest income, and other (income) expense.