UPDATE: JMP Downgrades Sarepta, Data Considered Weak and Overstated
In Monday's JMP Securities Morning Note, analyst Liisa A. Bayko downgraded Sarepta Therapeutics (NASDAQ: SRPT) from Market Outperform to Market Perform.
Shares of Sarepta gained approximately 40% following Prosensa Holding N.V.'s (NASDAQ: RNA) announcement that will file approval for its drug treating boys under the age of seven with Duchenne Muscular Dystrophy (DMD). The approval of dirsapersen for treating DMD could provide future gains for Sarepta.
Bayko reported that this data is "weak" and that the read-through to Sarepta could be overstated. JMP analyst commented, "our sense is that the FDA could request a second study from Prosensa, putting further pressure on the already scarce patient population available for clinical trials. While we continue to believe eteplirsen is a best-in-class drug that will eventually be approved in DMD, we are moving to the sidelines due to the extended time we anticipate to reach pivotal data and approval as well as a lack of meaningful catalysts in the interim."
Sarepta closed at $25.44 on Friday and shares have traded as low as $22.90, down 11.09%.
Latest Ratings for SRPT
|Jul 2014||WBB Securites||Upgrades||Speculative Buy||Buy|
|May 2014||Roth Capital||Initiates Coverage on||Buy|
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