Mitchell Kapoor, an analyst from H.C. Wainwright, reiterated the Sell rating on Sarepta Therapeutics (SRPT – Research Report). The associated price target remains the same with $75.00.
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Mitchell Kapoor has given his Sell rating due to a combination of factors affecting Sarepta Therapeutics’ ELEVIDYS treatment. The recent death of a 16-year-old patient due to acute liver failure, a known adverse event of ELEVIDYS, has raised significant concerns about the treatment’s safety profile. This incident is likely to deter DMD prescribers from recommending ELEVIDYS, especially given the minimal efficacy benefits observed, and may lead to delays in treatment until more favorable results are available from ongoing studies.
Additionally, Kapoor doubts Sarepta’s ability to achieve its revenue guidance of 160% year-over-year growth for ELEVIDYS, as the uptake in non-ambulatory and older DMD patients, who make up a significant portion of the target population, is expected to be low. Payer discussions indicate limited coverage for these subgroups due to insufficient clinical evidence, further impacting potential sales. These challenges, along with the lack of convincing efficacy data, underpin Kapoor’s Sell rating on Sarepta’s stock.