Cowen top analyst Ritu Baral shares insight on Sarepta Therapeutics Inc (NASDAQ:SRPT) after speaking with three key opinion leaders (KOLs) regarding the recent approval of intravenous infusion Exondys 51 (eteplirsen) for the treatment of Duchenne muscular dystrophy (DMD) in patients who have a confirmed mutation of the DMD gene that is amenable to exon 51 skipping.
Though Baral notes all three KOLs indicated skepticism regarding the PROMOVI dystrophin data and the readout’s “true” clinical implications, they also explain this has no bearing on their willingness to prescribe Exondys 51 to the majority, and potentially even all, amenable patients, especially if given “excellent” safety and tolerability. As such, Baral reiterates an Outperform rating on SRPT with a price target of $64, which represents an almost 18% increase from where the shares last closed.
The analyst opines, “Our KOLs would be further convinced by additional clinical/functional data (including 6MWT and respiratory function tests), which we think will become the litmus test for treatment in clinical practice.”
“MDs are skeptical of clinical benefit given the dystrophin data, but would still prescribe it to all amenable pts. Average DMD pt weight also appears higher than SRPT’s guidance, which may provide upside in the early launch. While there is noise on the reimbursement front, we see little true cause for concern,” Baral concludes.
As usual, we like to include the analyst’s track record when reporting on new analyst notes to give a perspective on the effect it has on stock performance. According to TipRanks, top five-star analyst Ritu Baral has achieved a high ranking of #75 out of 4,182 analysts. Baral has a 49% success rate and realizes 17.4% in her yearly returns. However, when recommending SRPT, Baral loses 16.6% in average profits on the stock.
TipRanks analytics exhibit SRPT as a Strong Buy. 11 rate a Buy on SRPT, while 3 maintain a Hold. The consensus price target stands at $74.23, marking a nearly 37% upside from where the stock is currently trading.