Optimistic Outlook for Sarepta Therapeutics Amid Positive Developments in ENVISION Study and Strategic Partnerships

Leerink Partners analyst Joseph Schwartz has maintained their bullish stance on SRPT stock, giving a Buy rating on May 21.

Joseph Schwartz has given his Buy rating due to a combination of factors, primarily focusing on the recent developments in Sarepta Therapeutics’ ENVISION study. The Medicines & Healthcare products Regulatory Agency (MHRA) in the UK has allowed the continuation of dosing in the study, which is seen as a positive step forward. This decision comes despite the temporary clinical hold imposed by the European Medicines Agency (EMA) following a safety event, suggesting that the overall benefit-risk profile remains favorable.
Furthermore, Schwartz notes that the ex-US opportunity with Elevidys, while not a major component of the valuation, is still a positive aspect. The partnership with Roche indicates that ex-US sales are not the primary focus, with more emphasis placed on the US sales trajectory. Despite recent sales challenges, the potential for lifting the EMA hold and the continued progress in clinical trials contribute to the optimistic outlook for Sarepta’s stock.

In another report released on May 21, BMO Capital also maintained a Buy rating on the stock with a $120.00 price target.

SRPT’s price has also changed dramatically for the past six months – from $110.500 to $40.050, which is a -63.76% drop .