Nucor earnings beat by $0.08, revenue fell short of estimates
Investing.com - H.C. Wainwright has reiterated its Sell rating and $0 price target on Sarepta Therapeutics (NASDAQ:SRPT) stock, citing multiple negative developments and anticipated catalysts. The stock, currently trading at $11.93, has lost over 90% of its value year-to-date, with InvestingPro data showing the stock’s RSI indicating oversold territory.
The firm pointed to recent setbacks for Sarepta, including three patient deaths across its gene therapy portfolio, the removal of ELEVIDYS from the U.S. market, and a negative recommendation from the European Medicines Agency’s Committee for Medicinal Products for Human Use (CHMP) regarding EU approval. According to InvestingPro data, these challenges have contributed to the company’s rapid cash burn, though its current ratio of 4.02 indicates sufficient liquid assets to meet short-term obligations.
H.C. Wainwright expressed concern about several potential negative catalysts ahead, including the possibility that the FDA might align with the European regulatory position and reject approval, which could prevent ELEVIDYS from returning to any segment of the Duchenne muscular dystrophy (DMD) market.
The research firm also noted that if the FDA requires a comprehensive safety study for ELEVIDYS to return to the U.S. market, it would likely result in a lengthy timeline and negative impact on Sarepta shares, adding that any manufacturing or dosing changes would need to address toxicity while maintaining efficacy.
Additionally, H.C. Wainwright highlighted the pending results from confirmatory trials for Sarepta’s remaining marketed products, including EXONDYS 51, where the current label states "a clinical benefit of EXONDYS 51 has not been established," suggesting these outcomes could put the company’s remaining revenue streams at risk. InvestingPro analysis reveals seven analysts have recently revised their earnings downward, with the company expected to remain unprofitable this year. For deeper insights into Sarepta’s financial health and future prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, Sarepta Therapeutics has faced significant developments impacting its business. Arrowhead Pharmaceuticals (NASDAQ:ARWR) earned a $100 million milestone payment from Sarepta after reaching a key enrollment target in a clinical study of ARO-DM1, an RNA interference therapeutic for type 1 myotonic dystrophy. Meanwhile, Sarepta has been downgraded by multiple analyst firms due to concerns surrounding its Elevidys therapy. Barclays (LON:BARC) downgraded Sarepta from Equalweight to Underweight, citing the voluntary suspension of Elevidys after a third death related to the therapy. JPMorgan also downgraded Sarepta to Underweight, attributing the decision to negative headlines affecting investor sentiment. Jefferies, while maintaining a Buy rating, lowered its price target to $35 from $40, pointing to Roche’s reduced sales guidance for Elevidys. Additionally, Citi reiterated its Sell rating amid regulatory challenges, noting that FDA reviewers unanimously agreed against the return of Elevidys to the market. These recent developments highlight the challenges and changes facing Sarepta Therapeutics.
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