William Blair Weighs In on Sarepta Therapeutics Inc (SRPT) Following Changes In ESSENCE Trial

In a research report issued Friday, William Blair analyst Tim Lugo reiterated a Market Perform rating on shares of Sarepta Therapeutics Inc (NASDAQ:SRPT), after the company released an update to the Duchenne muscular dystrophy (DMD) community that explained the recent changes in the company’s ESSENCE trial. The trial has been extended to 2 years from 1 year with the primary endpoint of six-minute walk test (6MWT) and the patient age range has changed from 7-16 years to 7-13 years.

Lugo noted, “In our view, these changes increase the likelihood of ESSENCE meeting its primary endpoint and if positive should lead to broader access to DMD patients […] ESSENCE will also now serve as a confirmatory study for eteplirsen if it is granted accelerated approval and we view this update as a positive sign that the FDA and Sarepta are continuing a positive dialogue on the conditions needed for both an accelerated and full approval.”

“As we anticipate the company to provide the FDA with dystrophin Western blot results from 13 patients at baseline and week 48 in the PROMOVI study in the near term, we continue to view an accelerated approval decision on the data as more likely now that the confirmatory trial design has been set. And while we see the clarification on confirmatory study design as an incremental positive, we continue to believe that a purchase of shares after a potential accelerated approval or after strong dystrophin data should still allow plenty of upside,” the analyst continued.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Tim Lugo has a yearly average return of -14.7% and a 28% success rate. Lugo has a -31.3% average return when recommending SRPT, and is ranked #3793 out of 3980 analysts.

Out of the 14 analysts polled by TipRanks, 5 rate Sarepta stock a Buy, 5 rate the stock a Hold and 4 recommend to Sell. With a return potential of 48%, the stock’s consensus target price stands at $24.30.


  • careful_investor_wins

    Do analysts still do research nowadays? ESSENSE study was first filed as far back as July 2015 by Sarepta, but almost a year has passed already, and the status of the study is still: This study is not yet open for participant recruitment. Sarepta is probably the first drug company in the world that can do a drug trial without any patient. Sarepta can change the trial method or whatever on paper a thousand times to fool investors time and time again, but if there is no real trial going on, what does it matter? Sarepta has been in business for 35 years and has accomplished NOTHING. No approved drug and no revenue now. NOTHING. Real DMD drug maker Marathon has submitted its FDA designated Fast Track real DMD drug deflazacort for FDA approval already. Marathon has finished a real 200+ DMD patient trial already, but Sarepta has not even started a real trial yet. Sarepta is at least 2 to 5 years behind Marathon drug trial schedule. Not to mention FDA has the Compassionate Use ready now. Who would still want to enroll in Sarepta trial when patients can simply try to get real DMD drugs from PTCT or Marathon through Compassionate Use? And PTCT already has its DMD drug approved and selling in the Europe, but PTCT stock market cap valuation is only 1/4 of Sarepta stock valuation. Why would anyone be so silly to own bubble stock SRPT that has no approved drug and no revenue when one can simply buy PTCT at 1/4 of the cost and PTCT already has approved DMD drug and revenues?