Sarepta price target lowered to $18 from $32 at Piper Sandler

Piper Sandler analyst Biren Amin lowered the firm’s price target on Sarepta (SRPT) to $18 from $32 and keeps a Neutral rating on the shares. The firm notes that on Friday night, Sarepta confirmed the reports from various news outlets that the FDA has requested it to voluntarily stop shipments of Elevidys for all patients. However, Sarepta has denied the FDA’s request to voluntarily stop shipments in the ambulatory setting and will continue to ship Elevidys for ambulant DMD patients. Piper believes the FDA sprang into action due to the continued liver safety events observed with Sarepta’s AAVrh74 vector. Next steps could be a forced withdrawal. However, this could take years and after lengthy litigation, and would take a lot of resources from both Sarepta and FDA, the firm adds. A more manageable solution may be implementation of a rigorous REMS program that ensures patient safety is top priority.