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Company Update (NASDAQ:SRPT): Sarepta Therapeutics Inc Announces First Quarter 2016 Financial Results


Sarepta Therapeutics Inc (NASDAQ:SRPT), a developer of innovative RNA-targeted therapeutics, today reported financial results for the three months ended March 31, 2016, and provided an update of recent corporate developments.

“The Peripheral and Central Nervous System Advisory Committee met last week to review eteplirsen for the treatment of Duchenne muscular dystrophy amenable to exon 51 skipping, and we await our May 26 PDUFA date,” said Edward Kaye, M.D., Sarepta’s interim chief executive officer and chief medical officer. “Following the FDA’s decision, we plan to provide a clinical and corporate update.”

Financial Results
For the first quarter of 2016, Sarepta reported a non-GAAP net loss of $52.5 million, or $1.15per share, compared to a non-GAAP net loss of $47.4 million for the first quarter of 2015, or$1.15 per share. The incremental loss of $5.1 million was primarily the result of increased operating expenses.

On a GAAP basis, the net loss for the first quarter of 2016 was $59.8 million, or $1.31 per share (including $7.2 million of stock-based compensation and restructuring expenses), compared to a net loss of $61.6 million, or $1.49 per share (including $14.2 million of stock-based compensation) for the first quarter of 2015.

No revenue was recognized for the three months ended in both March 31, 2016 and 2015.

Non-GAAP research and development expenses were $35.9 million for the first quarter of 2016, compared to $36.7 million for the first quarter of 2015, a decrease of $0.8 million. GAAP research and development expenses were $38.8 million for the first quarter of 2016 (including$3.0 million of stock-based compensation and restructuring expenses), compared to $39.2 million for the first quarter of 2015 (including $2.4 million of stock-based compensation), a decrease of $0.3 million.

Non-GAAP general and administrative expenses were $16.6 million for the first quarter of 2016, compared to $11.0 million for the first quarter of 2015, an increase of $5.6 million. GAAP general and administrative expenses were $20.9 million for the first quarter of 2016 (including$4.3 million of stock-based compensation and restructuring expenses), compared to $22.7 million for the first quarter of 2015 (including $11.7 million of stock-based compensation), a decrease of $1.8 million.

The Company had $140.6 million in cash, cash equivalents, short-term investments and restricted cash as of March 31, 2016 compared to $204.0 million as of December 31, 2015, a decrease of $63.4 million. The decrease was due to the use of cash to fund the Company’s ongoing operations, commercial launch activities and related inventory build.  (Original Source)

Shares of Sarepta are down nearly 3% to $16.74 in pre-market trading. SRPT has a 1-year high of $41.97 and a 1-year low of $8. The stock’s 50-day moving average is $18.61 and its 200-day moving average is $23.09.

On the ratings front, Sarepta has been the subject of a number of recent research reports. In a report issued on May 2, Oppenheimer analyst Christopher Marai upgraded SRPT to Buy. Separately, on the same day, Leerink Swann’s Joseph Schwartz reiterated a Sell rating on the stock and has a price target of $5.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Christopher Marai and Joseph Schwartz have a total average return of 6.6% and 11.9% respectively. Marai has a success rate of 47.4% and is ranked #261 out of 3827 analysts, while Schwartz has a success rate of 45.2% and is ranked #226.

Overall, 4 research analysts have rated the stock with a Sell rating, 5 research analysts have assigned a Hold rating and 4 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $22.50 which is 30.7% above where the stock closed yesterday.

Sarepta Therapeutics, Inc. is a biopharmaceutical company, which is engaged in the discovery and development of unique RNA-based therapeutics for the treatment of rare and infectious diseases. The company is primarily focused on rapidly advancing the development of its potentially disease modifying duchenne muscular dystrophy drug candidates. Sarepta Therapeutics was founded on July 22, 1980 and is headquartered in Cambridge, MA.