Oppenheimer cuts Sarepta price target on liver failure death concerns

Published 20/06/2025, 16:08
Oppenheimer cuts Sarepta price target on liver failure death concerns

Investing.com - Oppenheimer lowered its price target on Sarepta Therapeutics (NASDAQ:SRPT) stock to $45 from $123 while maintaining an Outperform rating following a second patient death. The stock, currently trading at $19.78, has fallen over 42% in the past week alone, according to InvestingPro data.

The price target reduction comes after Sarepta held an investor call on June 16 addressing its risk-mitigation plan following a second death of a non-ambulatory patient from acute liver failure.

Sarepta has temporarily halted ELEVIDYS shipments for non-ambulatory patients and suspended its fiscal year 2025 product revenue guidance of $2.3-2.6 billion due to uncertainty around the timing of an immunosuppressive protocol amendment.

Oppenheimer has removed non-ambulatory projections from its estimates, reducing the total addressable market to an incidence-based ambulatory population only.

The firm also cut the multiple assigned to ELEVIDYS to 3x from 8x, contributing to the significant reduction in price target despite maintaining its Outperform rating on the stock.

In other recent news, Sarepta Therapeutics has faced significant developments regarding its Duchenne muscular dystrophy treatment, Elevidys. The company has suspended shipments for non-ambulatory patients after a second fatal acute liver failure case was reported. This has led Mizuho (NYSE:MFG) to lower its price target from $85 to $40, while still maintaining an Outperform rating, and cutting its ambulatory sales forecast by 25%. TD Cowen downgraded Sarepta from Buy to Hold, citing concerns over the potential withdrawal of Elevidys FDA approval due to safety issues, and adjusted its price target from $62 to $24. Evercore ISI also reduced its price target to $28, maintaining an In Line rating, and expressed concerns about long-term cash generation and the need to focus on pipeline assets. Goldman Sachs followed suit, downgrading Sarepta from Buy to Neutral with a $29 price target, highlighting uncertainty about the safety risks and regulatory feedback. These analyst downgrades and adjustments reflect the growing concerns over Elevidys’ safety profile and its impact on future revenue potential.

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