SRPT - Sarepta Therapeutics: Pushing The Edge And Creating The Horizon

2024-06-22 06:47:18 ET

Summary

• Sarepta Therapeutics excels in rare disease therapies using RNA, gene editing, and gene therapies, with significant revenue growth driven by ELEVIDYS gene therapy approval.
• Despite missing the primary endpoint, ELEVIDYS hit key secondary endpoints, leading to FDA approval for all DMD patients ages 4 and older.
• Now with a label that covers roughly 80% of the DMD population, Sarepta is positioned for explosive growth in the DMD market.
• I believe ELEVIDYS alone is worth $250 per share of SRPT.

Sarepta Therapeutics ( SRPT ) has always been pushing the edge of biotech by advancing therapies for several rare diseases using RNA therapies, gene therapies, and gene editing. Not only has the company excelled in the clinic, but Sarepta has shown strong commercial performance with significant revenue growth, which has accelerated in recent quarters thanks to their freshly approved DMD gene therapy, ELEVIDYS. Despite missing its primary endpoint in the Phase III EMBARK trial, ELEVIDYS achieved key secondary endpoints and increased dystrophin expression, leading to a landmark FDA approval to broaden use in all DMD patients ages 4 and older, which is roughly 80% of all diagnosed patients. In addition, Sarepta’s extensive pipeline including SRP-9003 and SRP-5051, bolster its long-term growth prospects and create the horizon for gene therapeutics. It looks as if Sarepta is ready to go full steam ahead with ELEVIDYS and the market has reacted appropriately moving SRPT from $115 to $181 per share. Now that ELEVIDYS is approved and the company is well-funded, I am looking to ramp up my buying activity below my Buy Threshold that I reset in my last Sarepta article ....

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