Sarepta Therapeutics Inc (SRPT): Jefferies’ KOL Sees No Change To Eteplirsen Approvability

Sarepta Therapeutics Inc (NASDAQ:SRPT) shares are down nearly 3% to $31.40 in pre-market trading, following a statement from Jefferies’ key opinion leader (KOL) regarding yesterday’s news that Dr. Ronald Farkas, the lead on a critical FDA review of Sarepta’s eteplirsen for Duchenne muscular dystrophy (DMD), is leaving his position. His departure is viewed by investors as a good sign for a potential approval. However, the KOL believes there’s no change to Eteplirsen approvability.

Jefferies lead analyst Gena Wang noted, “We hosted a call with an FDA regulatory expert on the departure of FDA former agent Dr. Farkas (clinical team leader for eteplirsen review) and its potential impact on the approval process for eteplirsen. Our KOL sees no changes on the probability of approval and believes longer delay suggests a tougher path to approval. We continue to see low probability of approval for eteplirsen.”

Wang reiterated an Underperform rating on shares of Sarepta, with a $7.00 price target, which reflects a potential downside of -78% from last closing price.

As usual, we recommend taking analyst notes with a grain of salt. According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Gena Wang has a yearly average return of -7.3% and a 41% success rate. Wang has a -51.9% average return when recommending SRPT, and is ranked #3804 out of 4151 analysts.

Out of the 13 analysts polled by TipRanks (in the past 3 months), 4 rate Sarepta Therapeutics stock a Buy, 5 rate the stock a Hold and 4 recommend a Sell. With a downside potential of 30%, the stock’s consensus target price stands at $22.55.

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