Sarepta Therapeutics Inc (NASDAQ:SRPT) shared additional data from the Phase 2b program of Eteplirsen on October 1. The data features details about safety and clinical efficacy of eterplirsen in patients suffering from Duchenne muscular dystrophy (DMD). The data showed statistical significance of eterplirsen, given that it improved 151 meters in participants’ ability to walk at three years, when compared with external controls.
Brian Skorney of Baird weighed in on Sarepta on October 1 following the news, maintaining an Outperform rating on the stock with a $47 price target. The analyst continues to be bullish on the stock following their update at the World Muscle Society meeting.
Skorney said, “Sarepta provided a wealth of new data today that is currently under FDA review. Confirmation of dystrophin production, a pristine safety profile in over 100 patients and a new compelling analysis of three year treatment data against a matched historical control group provide additional support going into a November AdCom. We won’t argue an effect is definitive but strong enough to meet the FDA hurdle of reasonably likely to predict a benefit? Probably.”
Skorney has an overall success rate of 52% recommending stocks and a +8.8% average return per recommendation when measured over a one-year horizon and no benchmark.
On October 2, Heather Behanna from Wedbush upgraded Sarepta to Outperform from her earlier Neutral rating with a $56 price target.
Talking about the data, Behanna said, “In our view, the data presented directly address FDA requests for more information.” She added, “We believe the data weigh in favor of eteplirsen receiving accelerated approval and have lowered our discount rate to 25%.”
Referring to suitability of this data to FDA’s criteria, Behanna said, “We view these data as more palatable to FDA than a subset analysis of the 12 boys. Sarepta have compared these data to comparable boys with natural history data, showing a significant improvement at a three year time point. As a reminder, the agency has recently laid out guidance of the use of historical controls and we believe these data fit the criteria.”
On average, Behanna has a 55% success rate recommending stocks and a +19.5% average return per recommendation when measured over a one-year horizon and no benchmark.
Based on 10 analysts polled by TipRanks who have recently rated Sarepta, 9 have rated it as a Buy, while 1 as rated it as a Hold. The average 12-month price target for Sarepta, based on ratings of these 10 analysts, is $50.56, a 20.99% potential upside from current levels.