Buy Rating on Sarepta Therapeutics: Confidence in Elevidys’ Market Potential and Strategic Expansion

In a report released yesterday, Tazeen Ahmad from Bank of America Securities maintained a Buy rating on Sarepta Therapeutics (SRPT – Research Report), with a price target of $210.00.

Tazeen Ahmad has given his Buy rating due to a combination of factors that underline the potential growth and strong market position of Sarepta Therapeutics. One of the key reasons is the anticipated success of Sarepta’s gene therapy, Elevidys, despite the emerging data from a competitor, RegenxBio. Ahmad acknowledges that while RegenxBio’s initial data shows potential improvements, the small sample size limits the comparability to Elevidys. There is confidence in Elevidys’ market performance, with expectations of $4.3 billion in peak sales and a 60% peak penetration, as it is believed that physicians will continue to prescribe Elevidys given the progressive nature of Duchenne muscular dystrophy (DMD) without treatment.
Furthermore, Sarepta’s strategic expansion plans bolster the Buy rating. The company is actively working on extending its treatment to younger patients, collaborating with Roche on a study for children under four years old. This initiative, coupled with the current label for patients aged four and older, positions Sarepta to potentially broaden its addressable market. Ahmad remains optimistic about the ongoing momentum of Elevidys’ launch and maintains a price objective of $210, reflecting the company’s promising outlook and competitive positioning in the DMD therapy landscape.

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Sarepta Therapeutics (SRPT) Company Description:

Sarepta Therapeutics, Inc. is a commercial-stage biopharmaceutical company, which is engaged in the discovery and development of therapeutics for the treatment of rare diseases. The company was founded on July 22, 1980 and is headquartered in Cambridge, MA.