On Wednesday, BMO Capital Markets sustained its positive stance on shares of Sarepta Therapeutics (NASDAQ:SRPT), maintaining an Outperform rating and a $200.00 price target for the company's shares. The endorsement comes in anticipation of potential clinical data announcements at the upcoming JPMorgan Healthcare Conference.
Sarepta Therapeutics, trading on NASDAQ:SRPT, has recently entered into a partnership with Arrowhead Pharmaceuticals (NASDAQ:ARWR), which has sparked discussions among investors.
According to InvestingPro data, Arrowhead, currently trading at $19.97 with a market cap of $2.48 billion, maintains strong liquidity with a current ratio of 6.74, though the company is experiencing significant cash burn. Analysts from BMO Capital predict that the conference may feature updates on clinical data for Sarepta's programs targeting DM1 and FSHD, although they consider an increase in the Elevidys 2025 revenue guidance to be less probable.
The partnership is expected to bring attention to Sarepta's ARO-DM1 program, which analysts believe has a 70% probability of demonstrating superior safety and efficacy compared to its competitors, Avidity Biosciences and Dyne Therapeutics.
This superiority is attributed to the ARO-DM1 program's unique delivery approach, which could potentially avoid issues such as anemia and hemorrhage. InvestingPro subscribers can access detailed financial health scores and 8 additional ProTips to better evaluate this partnership's potential impact.
Analysts anticipate that the release of DM1 clinical trial results could significantly influence Sarepta's stock value. A positive outcome could lead to a 10-20% increase in the company's share price, while a negative result might result in a 5-10% decline.
For Arrowhead, analyst targets range from $24 to $80, reflecting mixed sentiment amid its revenue decline of 98.52% over the last twelve months. Despite the potential volatility, Sarepta Therapeutics is listed as one of BMO Capital's top picks for the year 2025.
In other recent news, Arrowhead Pharmaceuticals has been making significant strides in its financial status and drug development. The company has been recognized by B.Riley analysts for its dominance in the siRNA therapeutics market and the potential benefits from the recent FDA approval of a similar drug, Tryngolza. The firm also highlighted Arrowhead's recent balance sheet improvements, extending the cash runway to 2028.
H.C. Wainwright raised the stock's price target for Arrowhead, expressing optimism driven by the company's recent global license and collaboration agreement with Sarepta Therapeutics. This strategic partnership is viewed as a critical factor in supporting the commercial launch of Arrowhead's first RNA interference (RNAi) therapeutic, anticipated in 2026 if it receives approval.
On the other hand, Bernstein SocGen Group lowered its price target for Arrowhead due to capital concerns for the plozasiran CAPITAN CVOT trial. Despite this, the company's strategic shift to focus on advancing its cardiometabolic assets is seen favorably.
Piper Sandler, while reducing its 12-month price target for Arrowhead, maintained an Overweight rating on the stock. This adjustment followed Arrowhead's announcement of a significant strategic partnership with Sarepta Therapeutics, involving various TRiM programs.
Lastly, Chardan Capital Markets sustained its Buy rating for Arrowhead, following a significant licensing and collaboration agreement with Sarepta Therapeutics. The deal is deemed a positive step for Arrowhead, potentially alleviating concerns regarding its financial stability.
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