RBC Capital analyst Brian Abrahams lowered the firm’s price target on Sarepta to $200 from $226 but keeps an Outperform rating on the shares. The analyst cites the company disclosing that the FDA has shifted its stance following a late-cycle review and decided to hold an AdCom for Sarepta’s lead DMD gene therapy ‘9001. While the decision may be due to the FDA’s reorganized leadership wanting to set a precedent for efforts to speed paths for gene therapies, it may also signal that the agency is still seeking to get more comfortable with microdystrophin as a surrogate, adding some risk to the approvability and timelines, RBC Capital tells investors in a research note. The firm contends however that it still sees many paths for ‘9001 to "get over the line" and believes that Sarepta shares overly discount this potential.
Published first on TheFly
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