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Investing.com - JPMorgan has reduced its price target on Sarepta Therapeutics (NASDAQ:SRPT) to $28.00 from $30.00 while maintaining an Overweight rating on the stock. The stock has declined 87% over the past year, with analyst targets ranging from $10 to $110, according to InvestingPro data.
The firm cited a "valuation disconnect" at current levels relative to the long-term potential of the company’s commercial franchise.
Sarepta’s portfolio includes three FDA-approved treatments for Duchenne Muscular Dystrophy (DMD) with amenable mutations: Exondys 51, Vyondys 53, and Amondys 45.
The company’s gene therapy Elevidys currently has full approval for all ambulatory DMD patients, according to JPMorgan.
Elevidys has paused dosing for the non-ambulatory population, though it maintains accelerated approval status pending discussions with the FDA.
In other recent news, Sarepta Therapeutics is under scrutiny following two reported deaths linked to its gene therapy, Elevidys. The U.S. Food and Drug Administration is investigating these incidents, which involved acute liver failure in non-ambulatory Duchenne muscular dystrophy patients. In response, Sarepta has halted shipments of Elevidys for non-ambulatory patients and suspended its fiscal year 2025 product revenue guidance. Piper Sandler maintained its Neutral rating on Sarepta, highlighting ongoing safety concerns and the need for further assessment of patient risk factors. Meanwhile, Oppenheimer lowered its price target for Sarepta from $123 to $45, citing the second patient death and the suspension of non-ambulatory projections. William Blair downgraded Sarepta from Outperform to Market Perform, reflecting concerns over reduced revenue potential. Additionally, Mizuho (NYSE:MFG) reduced its price target to $40 from $85, projecting zero sales for the non-ambulatory setting but maintaining an Outperform rating. These developments indicate a cautious outlook from analysts as Sarepta navigates the challenges posed by these safety concerns.
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