Sarepta Therapeutics (NASDAQ:SRPT) shares plunged more than 37% yesterday. The fall comes after the company’s Elevidys gene therapy failed to meet the key goal in a late-stage trial. The investors are concerned about the therapy’s future approvals. Elevidys had received the Food and Drug Administration’s nod earlier this year for use in children aged 4 to 5.
The therapy has been designed to treat Duchenne muscular dystrophy (DMD) in children. DMD is a condition that appears in early childhood and results in progressive muscle weakness.
The company revealed that after 52 weeks, patients who underwent the therapy showed improved motor function in comparison to those who received placebos. Nevertheless, the trial results did not reach statistical significance and ultimately missed the primary objective of the study.
Analysts Reactions
It is worth mentioning that despite this announcement, four analysts have maintained a Buy rating on SRPT stock. However, Oppenheimer analyst Hartaj Singh downgraded the stock’s rating to Hold from Buy.
The bullish analysts noted that while the gene therapy trial didn’t achieve the desired result, it didn’t indicate any safety concerns. This leads them to believe that Elevidys is less likely to be withdrawn from the market.
What is the Stock Price Forecast for SRPT?
Overall, SRPT commands a Strong Buy consensus rating based on eight Buy and two Hold recommendations. Also, the average Sarepta stock price target of $155.89 implies a 131.6% upside potential from current levels.
