Biotech Hedge Fund Bailed on Drugmaker Before Its Depression Treatment Scored

Baker Bros. Advisors LP, a hedge fund known for making big biotechnology bets, looks to have relinquished its stake in Sage Therapeutics Inc. leading up the drugmaker’s slam-dunk depression study.

Baker Bros., which was among the top 20 holders of the biotech stock at the end of September, sold its final 567,497 shares by the end of 2018, according to a regulatory filing this week. Though it’s possible the fund bought back in during a narrow window in early January, the end of the most recent filing period came a week before Sage’s next-generation antidepressant succeeded in reducing women’s postpartum depression symptoms in a pivotal study, triggering a rally of more than 40 percent.