In a research note issued Wednesday, JMP Securities analyst Liisa Bayko reiterated an Underperform rating on shares of Sarepta Therapeutics Inc (NASDAQ:SRPT) with a $10 price target, following the news that the FDA’s head of clinical review Dr. Ronald Farkas left his job. Farkas was critical of Sarepta’s eteplirsen and his departure is viewed by investors as a sign for potential approval.

Bayko commented, “Rumors surfaced yesterday afternoon on Twitter that Dr. Ronald Farkas, the leader of the clinical team for SRPT’s eteplirsen NDA has left the FDA, which we think may boost shares due to a read-through that is another step toward approval. We have not been able to officially confirm the departure with FDA but note that Dr. Farkas is not listed in the U.S. Department of Health and Human Services employee directory. If he has indeed departed, the reason is not known but could be related to eteplirsen. Absent any additional information, we maintain our 10% chance of first-cycle approval for Eteplirsen while we acknowledge the large swing in valuation that is possible for an accelerated approval of upside to ~ $65 and downside to ~$5.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Liisa Bayko has a yearly average return of 13.3% and a 56% success rate. Bayko has a -45.4% average return when recommending SRPT, and is ranked #297 out of 4163 analysts.

Out of the 15 analysts polled by TipRanks, 6 rate Sarepta stock a Buy, 5 rate the stock a Hold and 4 recommend a Sell. With a downside potential of 34%, the stock’s consensus target price stands at $21.