Cowen Weighs in on Sarepta Therapeutics Inc (SRPT) Following 2Q:16 Report

Cowen analyst Ritu Baral provides insight on shares of Sarepta Therapeutics Inc (NASDAQ:SRPT) after the biotech company recently posted second-quarter results and offered an update on its clinical progress. Baral reiterates a Market Perform rating without listing a price target.

Sarepta intends to submit additional dystrophin data from its ongoing Phase 3 PROMOVI study, evaluating treatment for patients with Duchenne Muscular Dystrophy. Data submission should be in by the end of this month, and Baral asserts, “We expect an update from management upon data submission and strongly believe materiality necessitates release of the actual dystrophin data.”

From the analyst’s perspective, Sarepta’s recent enrollment of patients in the Phase 3 ESSENCE trial of SRP-4045 and SRP-4053 in patients with Duchenne Muscular Dystrophy suffering from mutations is an “encouraging step forward for the company,” and incorporates feedback from the FDA on previous studies. Data from the trial is anticipated sometime in 2019. However, Baral expects even with substantial changes in the eteplirsen New Drug Application that have evolved from its original filing, “we think FDA may still require these safety findings as a postmarketing commitment for eteplirsen, if approved.”

Baral comments, “We continue to await further clarity on eteplirsen and the company’s path forward. Despite SRPT’s messaging, we believe materiality will force the company to release the PROMOVI dystrophin data.”

Additionally, for the quarter, Sarepta reported a net loss of $62.3MM along with EPS of ($1.35), compared to Baral’s estimate of ($1.33) and the Street’s projection ($1.23). By the close of the quarter, Sarepta had $134.7MM in cash flow, which Baral anticipates will help the firm fund operations through at least the first quarter of 2017. Baral explains, “We note that the runway this cash balance provides is entirely dependent on strategy, which in turn is dependent on the eteplirsen FDA decision.”

According to TipRanks, Ritu Baral is ranked #654 out of 4,110 analysts. Baral has a 43% success rate and earns 4.4% in her annual returns. However, when recommending SRPT, Baral loses 20% in average profits on the stock.

TipRanks analytics show SRPT as a Hold. Based on 14 analysts polled in the last 3 months, 5 rate a Buy on Sarepta, 5 maintain a Hold, and 4 issue a Sell. The 12-month average price target stands at $21.92, marking a nearly 12% downside from where the shares last closed.

Recommended Article: JMP Securities Chimes In on Sarepta Therapeutics Following 2Q Update; Awaits FDA Decision on Eteplirsen


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