Cowen Reiterates Upbeat View on Sarepta Therapeutics Inc (SRPT) Amid Pipeline Collaborations


Sarepta Therapeutics Inc (NASDAQ:SRPT) just announced two Duchenne muscular dystrophy (DMD) collaborations to evaluate combotherapy with exon skipping. Sarepta will be partering with Catabasis Pharmaceuticals Inc (NASDAQ:CATB) to hone in on combination treatment with Catabasis’ NF-kB inhibitor CAT-1004 in a preclinical mouse model.

Furthermore, SRPT announced a license and collaboration agreement for Summit Therapeutics’ (SMMT) utrophin modulator pipeline, which includes ezutromid. Utrophin is similar to the dystrophin protein, which helps the healthy function of muscles, an ability missing in DMD patients.

In light of these collaborations, Cowen top analyst Ritu Baral reiterates an Outperform rating on shares of SRPT with a $64 price target, which represents a nearly 4% increase from where the stock is currently trading.

The analyst asserts, “We see these collaborations as key drivers of SRPT’s early-stage pipeline.”

“We view these collaborations as strategic efforts by SRPT to not only strengthen its pipeline but also to enhance the (as of yet) unproven efficacy of Exondys 51. Importantly, both CATB’s edaslonexent and SMMT’s ezutromid are not genotypespecific treatments, and would potentially be efficacious for all DMD patients,” Baral concludes.

Additionally, the analyst anticipates top-line data from the Phase 2 portion of CAT-1004 of the MoveDMD trial by early 2017, which could lead to the consideration of an added clinical development agreement.

According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, top five-star analyst Ritu Baral has achieved a high ranking of #75 out of 4,197 analysts. However, when recommending SRPT, Baral faces a loss of 16.6% in average profits on the stock.

TipRanks analytics demonstrate SRPT as a Strong Buy. Based on 14 analysts polled in the last 3 months, 11 rate a Buy on SRPT, while 3 maintain a Hold. The 12-month price target stands at $73.46, marking a 19% upside from where the shares last closed.