Sarepta has released pre-clinical data for its next-gen PPMOs

Published By: Myrna Salomon on January 11, 2017 01:18 pm EST

Sarepta Therapeutics Inc (NASDAQ:SRPT) is now seen in a positive light at Goldman Sachs following the release of pre-clinical data related to its next-gen PPMO drugs. Goldman Sachs analyst, Salveen Richter, commented that the data shows some very encouraging signs and now believes that these drugs have very bright chances of being approved by FDA. The analyst, however, refrained from making any changes to the company’s rating or price target because further clarity is required before making any changes in the company’s forecast model.

The data presented by Sarepta Therapeutics regarding the next generation of PPMO drugs was far more positive than the analyst expected. Mice that were treated with the drugs showed 10 times increase in dystrophin production levels. The exon skipping efficiency in non-human primates was found to be greater than 90%. By looking at the data, one can expect the company to launch the drug in the market by the end of the year 2017, given that the clinical trials yield positive results. Even if the drug does make it into the market, several questions need to be answered before incorporating the drugs into the company’s forecast model.

Earlier this week, Sarepta announced collaboration with Nationwide Children’s Hospital in order to improve its presence in the sector. The key investor concern regarding the patient enrollment forms for clinical studies has also been answered to a certain extent. Around 90% of tier 1 and tier 2 centers have submitted their patient enrolment forms. The analyst expects Sarepta to generate revenue of $26 million during Q1, significantly ahead of the consensus of $18 million.

The analyst ratings for the stock are 6 Buy, 7 Outperform, and 5 Hold. The stock now trades at a price of $35.68 and has lost 5.83% since the open of the market.