SRPT - Sarepta Therapeutics: Why Today's Rally On DMD Drug Label Expansion Won't Last
2024-06-21 14:05:48 ET
Summary
- Sarepta Therapeutics' gene therapy Elevidys has been granted label extension to treat Duchenne Muscular Dystrophy patients aged 4 and above.
- Sarepta Therapeutics stock price soars over 30% to >$160 following the news, on potential for profitability and dominance in DMD gene therapy market.
- FDA approval for the label expansion was not necessarily expected, hence today's rally. Elevidys has also had its accelerated approval in ambulatory patients converted to a full approval.
- It's great news for Sarepta and its shareholders, and patients, provided they are reimbursed the $3.2m cost of the therapy.
- A pragmatic assessment of the market and SRPT stock's upgraded market cap valuation suggests the rally does not have longer-term momentum.
Investment Overview
Sarepta Therapeutics, Inc. ( SRPT ) shareholders will be celebrating today after the company announced that its gene therapy elevidys, which won accelerated approval to treat ambulatory, pediatric Duchenne Muscular Dystrophy patients aged 4 through 5 years in June 2023, has been granted a label extension, to treat patients aged 4 and above....
Sarepta Therapeutics: Why Today's Rally On DMD Drug Label Expansion Won't Last