Sarepta's 250 start-form submissions come in well-above the buy-side expectations, according to Baird analyst
Published By: Eunice Gettys on January 11, 2017 08:10 am EST
Baird analyst Brian Skorney expressed his views on Sarepta Therapeutics Inc (NASDAQ:SRPT) as the company disclosed that more than 250 patients have submitted start forms for Exon-51. Consequently, the analyst reiterated an Outperform rating along with a price target of $102. Following the move, SRPT shares traded in the green and climbed a healthy 21.21% during active trading Tuesday.
In an update research note issued to investors on January 10, Mr. Skorney stated, “Sure, we admit that $5.4M isn't a blowout and if the stock were still at $60, would be a disappointment.” However, the $5.4 million sales mark for Exon-51 remains well-above the consensus expectations of $4.9 million.
He also added that while Sarepta had very low expectations, the 250 patient start forms were well-above the buy-side expectations. A few buy-side analysts had projected the program to receive only 150 submissions while many analysts shared their concerns earlier that the number can fall below 100.
Mr. Skorney further stated that as the Massachusetts-based company exceeded expectations, his team remains strong buyers of the stock. He believes that while the company presented positive animal data for the drug, SRPT can further expand if it can produce similar results in human trials for Duchenne muscular dystrophy (DMD. Therefore, the analyst maintained the drug maker as his top mid-cap pick for the calendar year 2017 (CY17).
Additionally, the firm noted that the company’s shares rose following the announcement that it has signed a research and option agreement with Nationwide Children’s Hospital for their microdystrophin gene program. Under this agreement, the company aims at supporting clinical development for gene therapy to help all patients suffering from DMD.