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On Tuesday, Sarepta Therapeutics (NASDAQ:SRPT), currently trading at $81.07 and near its 52-week low, maintained its Buy rating and $203.00 price target from TD Cowen, despite the reported death of a patient treated with the company’s drug Elevidys. According to InvestingPro data, the company’s market capitalization stands at $7.57 billion, with analyst targets ranging from $75 to $215. The news came following a disclosure that a 16-year-old patient who received the maximum dose of Elevidys experienced an acute liver injury and subsequently died. The patient also had a concurrent cytomegalovirus (CMV) reactivation, which may have contributed to the liver stress post-treatment.
TD Cowen analyst Ritu Baral provided insights from a key opinion leader (KOL) in orphan neuromuscular diseases, who spoke at an investor event hosted by the Muscular Dystrophy Association (MDA). According to Baral, the KOL indicated that Sarepta had issued a "dear doctor" letter the previous day, informing healthcare professionals of the incident.
The KOL, whose expertise is valued in this field, suggested that the CMV reactivation is likely a confounding factor in the patient’s liver injury. The KOL further mentioned that there is no expected impact on the use of Elevidys at their center for younger patients, implying a continued confidence in the treatment despite the reported case. This confidence aligns with Sarepta’s strong financial health, as InvestingPro analysis shows a robust current ratio of 4.2 and impressive revenue growth of 53% over the last twelve months.
Sarepta Therapeutics is a biotechnology company focused on the discovery and development of precision genetic medicine to treat rare neuromuscular diseases. Elevidys is one of the company’s products, and this recent event has put a spotlight on its safety profile.
The report of the patient’s death and the subsequent remarks by the KOL provide a nuanced view of the risks associated with Elevidys. Nonetheless, the maintained Buy rating and price target by TD Cowen indicate a steady outlook for Sarepta Therapeutics’ stock in the eyes of the analyst firm. With a strong analyst consensus recommendation of 1.65 (where 1 is Strong Buy), the company’s shares continue to be monitored by investors as they assess the implications of this incident on the drug’s perception and usage in the medical community. For deeper insights into Sarepta’s financial health and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, which cover over 1,400 US stocks.
In other recent news, Sarepta Therapeutics has been at the center of attention following a reported patient death linked to its gene therapy product, Elevidys. This incident, involving acute liver failure, has been met with varied responses from analysts. Mizuho (NYSE:MFG) maintained an Outperform rating on Sarepta, suggesting the event is isolated and emphasizing Elevidys’s positive benefit-risk profile. Similarly, BofA Securities upheld a Buy rating with a $210 target, acknowledging the incident but highlighting the drug’s overall safety record with over 800 patients treated.
Sarepta is considering label updates for Elevidys and introducing cytomegalovirus (CMV) infection testing as a precautionary measure. Meanwhile, Scotiabank (TSX:BNS) initiated coverage on Sarepta with a Sector Perform rating and a $105 target, citing potential risks from competitors and the need for a robust pipeline. Cantor Fitzgerald maintained an Overweight rating with a $163 target, adjusting its financial model based on Sarepta’s guidance. These developments reflect ongoing confidence in Sarepta’s strategy, despite the recent adverse event.
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