Analysts Say Buy Sarepta Therapeutics Inc (SRPT) Shares, Ignore Patient Deaths
Sarepta shares dropped 4% after patient deaths revealed in the FDA FAERS database.
Sarepta Therapeutics Inc (NASDAQ:SRPT) shares struggled today after the FDA released details of patient deaths following treatment with the company’s Duchenne muscular dystrophy drug, Exondys 51. Specifically, the FDA’s Adverse Events Reporting System (FAERS) showed 13 serious events connected to Exondys 51, including 3 patient deaths.
That’s not as bad as it sounds for Sarepta, at least according to several Wall Street analysts:
Baird analyst Brian Skorney commented, “Yesterday’s release of an easy-to-use public dashboard with access to FAERS reports on all drugs through August 31 have caused widespread panic. We’re strong buyers on the dip, as we think this is a clear case of data being grossly misinterpreted. We’ve taken a look at the data, and we don’t think there is anything to see here other than natural history taking effect.” Skorney rates SRPT an Outperform with a price target of $101. (To watch Skorney’s track record, click here)
Leerink Partners analyst Joseph Schwartz opined, “We believe these reported issues are generally expected outcomes of a progressive fatal disease like DMD and are not necessarily due to any mechanistic or safety flaws of the drug itself.” Schwartz rates SRPT an Outperform with a price target of $66. (To watch Schwartz’s track record, click here)
Finally, William Blair analyst Tim Lugo stated, “We believe similar deaths, if they occurred in ongoing studies, would have been deemed material and disclosed, which to us suggests these events are not being observed in any of the ongoing Exondys 51 studies or studies of the follow-on exams (such as 45/53) […] We see the company with a pipeline of seven therapies in various stages of development as being the leader in the treatment of DMD. In the long term, we see Exondys 51 as likely driving similar value to Vertex’s cystic fibrosis franchise.”
Overall, most of the Street remains unfazed by the serious events, as TipRanks analytics exhibit SRPT as a Strong Buy. Out of 13 analysts polled in the last 3 months, 11 are bullish on Sarepta stock while 2 remain sidelined. With a return potential of 40%, the stock’s consensus target price stands at $63.38.