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Sarepta Gets An Upgrade; Cardiac, Pulmonary Function Could Provide Added Clinical Support For Exondys

Sarepta Therapeutics Inc SRPT presented encouraging long-term cardiac and pulmonary data at the MDA Scientific Conference. The data could provide “additional support for the clinical benefit from Exondys 51 treatment,” SunTrust Robinson Humphrey’s Edward Nash said in a report.

Nash upgraded the stock from Hold to Buy, while maintaining the price target at $45. He commented, “We are more bullish on payer coverage and market adoption of Exondys 51.”

Data To Support Payer Education

Management’s guidance implies that as high as 79 percent of insurance plans are pending policy decisions.

The analyst expressed optimism regarding the cardiac and pulmonary function data providing support to Sarepta’s efforts in payer education. He explained that this would be a more important measure than loss of ambulation for physicians to determine the clinical benefit of Exondys 51, since the deteriorating of cardiac and pulmonary function has a more severe impact on patient’s immediate quality of life.

US Launch Expectations

“The initial trend of U.S. launch is encouraging,” Nash commented.

Management suggested the tier 1 and tier 2 DMD [Duchenne Muscular Dystrophy] centers account for 80 percent of the entire DMD market. Management also indicated that all these centers, with the exception of one tier 2 center, had submitted a start form.

Management had guided to net revenue of $13-$15 million for Q1 2017 and of at least $80 million for FY2017.

Apr 2017SunTrust Robinson HumphreyUpgradesHoldBuy
Mar 2017NomuraInitiates Coverage OnBuy
Mar 2017Leerink SwannUpgradesMarket PerformOutperform

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