Biogen Inc. ( BIIB ) submitted an unsolicited bid to acquire all of the outstanding shares of Sage Therapeutics Inc. ( SAGE ) that it does not already owned by Biogen for $7.22 per share.

Goldman Sachs analyst Salveen Richter believes the proposal makes strategic sense, considering the financial success of the Zurzuvae launch for postpartum depression (PPD).

Biogen says Zurzuvae exceeded its expectations.

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Goldman Sachs estimates Zurzuvae could reach global peak sales of approximately $700 million for PPD by 2034.

Richter notes that investors remain focused on Biogen’s growth strategies. This includes expanding its pipeline, pursuing external business development, or leveraging new opportunities to counter declining revenue in the latter half of the decade.

During the third quarter earnings call, management highlighted the potential for an $8 billion to $10 billion deal within the next two years, primarily focusing on rare diseases and immunology.

They also emphasized continued interest in neurology while acknowledging the strength of Biogen’s immunology capabilities from its multiple sclerosis franchise and the need to diversify further.

William Blair has consistently seen Zurzuvae’s role in treating postpartum depression as less significant to Biogen’s overall value. Instead, the firm prioritizes the progress of Biogen’s late-stage programs and improvements in Leqembi’s treatment profile.

Analyst Myles Minter suggests that while the deal may not boost Biogen’s stock, it provides a smart strategy for marketing Zurzuvae and maximizing its value.

If the deal is finalized, Biogen should consider acquiring more companies in the neuropsychiatry field to strengthen its collaboration with Zurzuvae, Minter says.

Price Action: Biogen stock is up 0.34% at $150.32 at last check Monday.

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