Sarepta Therapeutics Inc (SRPT): Will Payors Reimburse Exondys 51?

Cowen analyst Ritu Baral is out with a new research note on shares of Sarepta Therapeutics Inc (NASDAQ:SRPT), as it appears that payors are still actively evaluating and reevaluating coverage of the company’s muscular dystrophy drug Exondys 51. Baral rates SRPT an Outperform with a price target of $62, which implies an upside of 90% from current levels.

Baral noted, “As SRPT management and our Neuromuscular Disease panelist indicated to us at our recent Healthcare Conference, payor discussions are continuing regarding Exondys 51 with manageable, increasingly positive feedback. Of the major plans we have seen coverage policies released for, only Anthem (including Blue Cross Blue Shield) had previously denied coverage of Exondys, though patients could petition for coverage via a standard appeal process.”

“Based on their February Specialty Pharmacy Medical Management Prior Authorization Drug List, it appears Anthem will add Exondys 51 to its prior auth list as of 5/1. We think this is encouraging and indicative of the evolving payor landscape surrounding Exondys 51 and more broadly, DMD. Anthem’s pick-up, together with those such as United, which started coverage on 2/1, support the idea of accelerating new patient starts, suggested by SRPT last week at our Healthcare Conference,” the analyst added

According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Ritu Baral has a yearly average return of 10% and a 45% success rate. Baral has a -24.5% average return when recommending SRPT, and is ranked #344 out of 4,515 analysts.

Out of the 17 analysts polled in the past 12 months, 14 rate Sarepta stock a Buy, while 3 rate the stock a Hold. With a return potential of 82%, the stock’s consensus target price stands at $59.31.


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