Sarepta approval still likely despite STAT article, says William Blair

William Blair keeps an Outperform rating on Sarepta Therapeutics and views yesterday’s selloff as a buying opportunity. While the STAT article on the surface suggests the FDA was leaning toward non-approval for Sarepta’s SRP-900, it also does not reflect the current status that a panel has been scheduled, that the FDA official most concerned with an approval is no longer at the agency, and that senior officials at the agency are looking to outside validation for approval, which will occur at the panel, the analyst tells investors in a research note. As such, the firm believes share weakness around the article should be viewed as a buying opportunity. It believes approval of the gene therapy is still likely.