RBC Capital Comments on Sarepta Therapeutics Inc (SRPT) in Light of Santhera’s DMD Drug Denial

RBC Capital analyst Simos Simeonidis weighed in today on Sarepta Therapeutics Inc (NASDAQ:SRPT), after the FDA refused to allow competitor Santhera accelerated approval for its Duchenne muscular dystrophy drug. Simeonidis believes that the news doesn’t bode well for Sarepta as well.

Simeonidis wrote, “Even though there are multiple differences between the Santhera and Sarepta drugs and datasets, (most of which favor Santhera, by the way), we do see a direct negative readthrough to the expected Sarepta decision from today’s news. We believe today’s news makes a positive decision on eteplirsen even more unlikely. Here are the facts: FDA just notified a company with positive data from a randomized, placebo-controlled trial, with 5-6 times the number of more patients (n=64) than Sarepta’s trial that these data are not sufficient to even be reviewed for approval, and that they should come back in 3 years after they run another Phase III trial, primarily because they need to see confirmation of these data from a trial with a more appropriate endpoint!”

The analyst reiterated a Sector Perform rating on Sarepta, with a price target of $5, which represents a potential downside of 76% from where the stock is currently trading.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Simos Simeonidis has a yearly average return of -34.2% and a 16% success rate. Simeonidis has a -60.6% average return when recommending SRPT, and is ranked #3954 out of 4055 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 return potential of 28%, the stock’s consensus target price stands at $26.27.


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