Morgan Stanley says Sarepta commentary points to minimal Catalent impact in FY24

After Sarepta (SRPT) reported that its EMBARK trial did not meet the primary endpoint of a change in the North Star Ambulatory Assessment total score from baseline to week 52, Morgan Stanley analyst Tejas Savant noted that the firm received multiple inbounds from concerned investors on the potential fallout for Catalent (CTLT) given the increased risk to Elevidys label expansion due to the trial missing its primary endpoint. Sarepta’s commentary on its manufacturing strategy and Elevidys label expansion points to “minimal” impact in FY24 on Catalent, though label expansion being achieved is “key to dimensioning FY25 dynamics,” said the analyst, who keeps an Overweight rating and $55 price target on Catalent shares and expects to hear further details on Sarepta dynamics on Catalent’s upcoming fiscal Q1 earnings call.