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Investing.com - Piper Sandler lowered its price target on Sarepta Therapeutics (NASDAQ:SRPT) to $11.00 from $18.00 while maintaining a Neutral rating as the company, now valued at $1.28 billion, announced a voluntary pause in Elevidys shipments. The stock, trading at $13.17, has fallen over 90% in the past year.
Sarepta announced it will temporarily pause Elevidys shipments effective at the close of business on Tuesday. The company indicated the pause is voluntary and designed to provide time to address information requests from regulators. InvestingPro data shows 7 analysts have recently revised their earnings expectations downward.
The decision aims to facilitate the completion of the Elevidys safety labeling supplement process in collaboration with the FDA. Piper Sandler’s price target reduction reflects concerns about the impact of this interruption on Sarepta’s business. Get deeper insights into Sarepta’s financial health and 12+ additional ProTips with InvestingPro.
The temporary nature of the pause suggests Sarepta expects to resume shipments once regulatory questions are addressed, though no specific timeline was provided for when normal operations might resume.
Piper Sandler noted that a webinar featuring the Founding President and CEO of Parent Project Muscular Dystrophy (PPMD) is scheduled for Wednesday to discuss how the Duchenne muscular dystrophy patient community is responding to the latest safety events related to the therapy.
In other recent news, Sarepta Therapeutics announced a temporary pause on all U.S. shipments of its drug Elevidys, following regulatory uncertainty and a request from the FDA. This decision aligns with an earlier halt by Children’s Hospital Los Angeles as they await further FDA direction. Barclays (LON:BARC) has downgraded Sarepta Therapeutics from Overweight to Equalweight, citing safety concerns after a third patient death linked to the company’s AAVrh74 platform was not publicly disclosed. Piper Sandler also adjusted its price target for Sarepta, reducing it to $18.00 from $32.00, while maintaining a Neutral rating due to Elevidys-related issues. Additionally, the FDA has placed a clinical hold on Sarepta’s gene therapy trials for limb girdle muscular dystrophy, affecting several programs. Despite these challenges, Cantor Fitzgerald continues to maintain a Neutral rating with a $14.00 price target, noting Sarepta’s treatment of nearly 1,000 patients. These developments highlight ongoing regulatory and safety challenges for Sarepta Therapeutics.
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