Roth Capital Weighs in on Biotech: Sarepta Therapeutics Inc (SRPT), Bluebird Bio Inc (BLUE), Agios Pharmaceuticals Inc (AGIO)


On August 2, Roth Capital analyst Debjit Chattopadhyay published a report providing a list of upcoming catalysts for several biotechnology companies including Sarepta Therapeutics Inc (NASDAQ:SRPT),Bluebird Bio Inc (NASDAQ:BLUE), and Agios Pharmaceuticals Inc (NASDAQ:AGIO). When measured over one year and no benchmark, Chattopadhyay has a 65% success rate recommending stocks with a +30.9% average return per rating.

Sarepta Therapeutics Inc
 
Sarepta Therapeutics focuses on the discovery and development of RNA-based therapeutics for the treatment of rare, infectious and other life threatening diseases. On June 26, the company announced the completion of a New Drug Application (NDA) to the FDA for eteplirsen. The pipeline drug targets the underlying cause of Duchenne muscular dystrophy (DMD), a genetic degenerative muscle disease. Chattopadhyay believes that there is an 80% probability of NDA acceptance for the drug with  potentialfor accelerated approval by December. The analyst reports, “The FDA may have inadvertently signaled eteplirsen NDA acceptance with potential back-to-back panel meetings set prior to Thanksgiving.” In his view, eteplirsen is significantly ahead of completion since Sarepta will “be initiating enrollment to its second pivotal (randomized study of exon’s 53 and 45) during 2H15.” Furthermore, Chattopadhyay notes that “multiple eteplirsen studies are underway.”
 
Sarepta, which is up +120.59% year-to-date, will report second quarter 2015 financial results before market open on August 6Although the shares of SRPT dropped 2.18% during the past week, the analyst believes the bigger picture is still very bullish.
 
Chattopadhyay reiterates a Buy rating and a $45 price target on Sarepta shares. Chattopadhyay has a 91% success rate recommending the stock with a +68.3% average return per Sarepta rating when measured over one year with no benchmark.
 
Bluebird Bio Inc
Bluebird Bio is a clinical-stage biotechnology company focused on developing gene therapies for severe genetic and rare diseases. Chattopadhyay notes that the company counts approximately $900 million in cash and equivalents, “unambiguous data, a defined path to market, and an evolving immunotherapy program.” The analyst believes these elements help maintain an advantageous position in the market. Moreover, he anticipates continued validation at the Annual Meeting of the American Society of Hematology (ASH). Chattopadhyay reports, “Based on the submission deadline (August 4th), the abstracts to be released in early October could highlight outcomes from up to 14 patients with follow up ranging from 20 months to four months.” He concludes that additional data will potentially be available at the ASH “Since both -205 and -204 studies are fully enrolled and -206 study is 62% enrolled,”
 
The company, which is up +80% year-to-date, is estimated to report second quarter 2015 financial results on August 11. Despite falling 15% since early June, the analyst believes the recent selloff in the stock creates “compelling entry points.”  
 
Chattopadhyay reiterates a Buy rating and a $192 price target on Bluebird Bio shares. Chattopadhyay has a 73% success rate recommending the stock with a +96.6 average return per Bluebird Bio rating with measured over one year with no benchmark.
 
Agios Pharmaceuticals Inc
 
Agios Pharmaceuticals is a biopharmaceutical company focused on the development and commercialization of therapeutics in the field of cancer metabolism and rare genetic disorders of metabolism. Chattopadhyay notes that a frontline trial for AG-120, a pipeline drug for patients with acute myelogenous leukemia (AML), will begin in the second half of 2015 and that “preliminary solid tumor data is expected from AG-120.”
 
The company, which is down -1.66% year-to-date, will report second quarter 2015 financial results on August 6 before market open. The company plans to also post recent clinical developments and corporate activities.
 
Chattopadhyay reiterates a Hold rating on Agios with a $114 price target. The analyst has only reported neutral ratings on Agios, earning himself a 0% success rate and a +0% average return per recommendation.