Crispr Therapeutics shares tumble after significant earnings miss
TD Cowen lowered its price target on Sarepta Therapeutics (NASDAQ:SRPT) to $62.00 from $137.00 on Monday, while maintaining a Buy rating on the stock. The move comes as the stock has plummeted 47% in the past week, with InvestingPro data showing the stock trading near its 52-week low of $18.30.
The significant price target reduction follows Sarepta’s announcement that a second non-ambulatory patient receiving its Elevidys treatment died from acute liver failure recently.
In response to the patient death, Sarepta has temporarily suspended all Elevidys shipments for non-ambulatory Duchenne muscular dystrophy (DMD) patients and withdrawn its fiscal year 2025 revenue guidance of $2.3-2.6 billion.
The company is proposing an enhanced immunosuppression regimen with sirolimus as a potential solution to address the safety concerns with the therapy.
TD Cowen noted in its analysis that "there is risk of add’l pt deaths and permanent impairment to Elevidys’ sales and terminal asset value," factors that contributed to the substantial reduction in price target.
In other recent news, Sarepta Therapeutics has faced significant developments following safety concerns with its Elevidys treatment. The company announced a second patient death due to acute liver failure in a non-ambulatory patient, leading to the suspension of shipments for this group until a new immunosuppressive regimen is agreed upon with regulators. This has prompted multiple analyst downgrades, with Morgan Stanley (NYSE:MS) reducing its rating from Overweight to Equalweight and cutting the price target to $40.00, while H.C. Wainwright downgraded the stock to sell and set a new price target of $10.00. BMO Capital and Piper Sandler also downgraded Sarepta, citing similar safety concerns and reducing their price targets to $70.00 and $36.00, respectively.
Despite these challenges, UBS maintained a buy rating with an $85.00 price target, acknowledging the potential regulatory hurdles but emphasizing the lengthy process involved in withdrawing a drug from the market. Sarepta has paused dosing in the ENVISION trial and is working on a new treatment protocol that includes the immunosuppressant drug sirolimus. Analysts have expressed concerns that the risk profile now affects all Duchenne muscular dystrophy patients, not just non-ambulatory ones. The situation has introduced uncertainties regarding Sarepta’s future revenue projections and its broader development pipeline.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.