Some investors might love biotech stocks for their lottery ticket-like returns when a company strikes medical gold. A lottery ticket, however, costs only a buck or two, while getting a biotech company wrong can hurt a lot more than that. Case in point: Sage Therapeutics (SAGE) shares dropped 24% since Monday, after the company released disappointing late-stage results for zuranolone, the major depressive disorder (MDD) drug candidate the company is collaborating on with Biogen. While zuranolone
