Pfizer failure eliminates DMD competitor for Sarepta, says Baird

Baird analyst Brian Skorney says Pfizer’s (PFE) gene therapy Phase 3 study failure in ambulatory patients with Duchenne muscular dystrophy, or DMD, is leading to immediate investor debate over the positives for Sarepta (SRPT), such as no more competition, versus the negatives, such as potential regulatory concerns. The firm says it is “incrementally positive” on the removal of the competitor overhang as it argues that Pfizer’s failure was “inevitable” and thinks the FDA was “already well aware of the Pfizer program’s shortcomings.” The firm, which doesn’t see “a significant reason for a change of heart over what we expect to be a label expansion for Elevidys by June 21,” maintains an Outperform rating and $170 price target on Sarepta Therapeutics shares.