Cantor downgrades Sarepta on uncertainties after study miss

Cantor Fitzgerald analyst Kristen Kluska downgraded Sarepta Therapeutics to Neutral from Overweight with a price target of $40, down from $166. The stock in morning trading is down 43% to $61.16. The primary endpoint miss in the EMBARK study, a Phase 3 clinical study of Elevidys in patients with Duchenne muscular dystrophy between the ages of 4 through 7 years, makes the case difficult for a broad age label, the analyst tells investors in a research note. The firm sees “a lot of uncertainties ahead,” and is moving to the sidelines as a result. The secondary outcome measures would have provided more supportive evidence if there had been a slight miss to the primary, but given that was not the case, those measures will not carry as much weight, says Cantor.