Sarepta Therapeutics (SRPT) is under mounting Wall Street scrutiny amid safety concerns surrounding its flagship gene therapy, Elevidys. In a striking call, analyst Mitchell Kapoor at H.C. Wainwright assigned a $0 price target to SRPT stock, citing the tension between the company and the FDA (Food and Drug Administration). Meanwhile, Kapoor maintained his Sell rating on SRPT stock.
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SRPT stock has plunged more than 30% over the past five trading days, following Friday’s news that the FDA requested Sarepta halt all shipments of Elevidys. In response, the company announced a voluntary pause in U.S. shipments of the therapy. For context, Elevidys is a one-time gene therapy from Sarepta that treats Duchenne muscular dystrophy (DMD) in patients aged four and up.
HC Wainwright Sees FDA Clash as ‘Unwinnable’
Kapoor’s rare price target cut comes after Sarepta initially refused to voluntarily pause Elevidys shipments, despite an FDA request following three patient deaths linked to the treatment. Additionally, Kapoor called the conflict with the FDA “unwinnable” and warned that regulators are likely to force Elevidys off the market. A potential withdrawal could wipe out the therapy’s revenue stream, leaving Sarepta stock effectively worthless.
He also cautioned investors against single-product biotech companies, warning that such a business model may not be sustainable.
Other Analysts Weigh In on SRPT Stock
After Friday’s decline, more than six analysts have downgraded their ratings on Sarepta stock. Notably, both Deutsche Bank Securities and Needham & Co. issued Sell ratings.
Needham’s analyst Gil Blum believes the ongoing “showdown” between the FDA and Sarepta will likely end with formal regulatory action against Elevidys. He also warns that a potential market withdrawal could jeopardize Sarepta’s ability to meet its $1.15 billion debt obligations due in 2027.
On the other hand, J.P. Morgan’s analyst Anupam Rama reiterated his Buy rating on SRPT stock, predicting an upside of over 50%. Rama believes Elevidys will likely remain available for ambulatory patients, as no deaths have been reported in that subgroup to date. These patients can walk independently or with minimal support.
What is SRPT’s Stock Price Forecast?
According to TipRanks, Wall Street has a Hold consensus rating on SRPT stock, based on six Buys, 17 Holds, and three Sells assigned in the last three months. The average Sarepta Therapeutics stock price target of $30.82 implies a 131.4% upside potential.
