Sarepta Therapeutics: WMS Data Update Incrementally Positive, Says Roth Capital


In a research report sent to investors today, Roth Capital analyst Debjit Chattopadhyay maintained a Buy rating on Sarepta Therapeutics (NASDAQ:SRPT) with a $34 price target, as the company presented data from its ongoing Phase II and preclinical trials evaluating exon-skipping therapies for the treatment of Duchenne muscular dystrophy (DMD) at the International Congress of the World Muscle Society (WMS).

Chattopadhyay noted, “While the WMS data alleviates some concerns, it does not alter the bear narrative: “the FDA is unlikely to set precedence by granting accelerated approval based on a tortured dataset from a few patients derived from mITT analysis.” Accelerated approval hinges upon: (1) outcome of the fourth biopsy, and (2) ability to enroll/dose in the open label pivotal (data readout 2H16) studies, potentially capping agency’s risk, in our opinion.”

The analyst added, “High beta, small cap biotechnology stocks have suffered disproportionate declines over the past few months, and are creating very attractive entry points for long-term investors. We would recommend buying Sarepta at current levels as we continue to believe that eteplirsen is biologically active and SRPT’s PMO-platform is best-in-class.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Debjit Chattopadhyay has a total average return of -17.7% and a 17.1% success rate. Chattopadhyay has a -20.2% average return when recommending SRPT, and is ranked #3303 out of 3324 analysts.

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