RBC's Bullish Neurologist Survey Leads To A $108 Price Target On Sarepta Therapeutics
A recent neurologist survey and the latest call with DMD KOLs support a bullish stance on the commercial prospects of Sarepta Therapeutics Inc’s (NASDAQ: SRPT) EXONDYS 51.
RBC Capital Markets’ Simos Simeonidis maintained an Outperform rating, while raising the price target from $83 to $108.
The DMD KOLs were more bullish than the results from the survey of 100 neurologists, and suggested wide use of the EXONDYS 51, Simeonidis mentioned. He adjusted the revenue model for EXONDYS 51 to reflect higher penetration rates and earlier peak sales.
More Bullish Than Earlier
Simeonidis believes the launch will be a very successful one, “once the logistics of reimbursement are slowly ironed out for patients in the first 2-3 quarters.”
As suggested by the KOLs, reimbursement is unlikely to become a significant issue, given the product’s broad label, apparent safety and the urgency of DMD patients to gain immediate access to this agent.
“We have made similar adjustments to our projections in the revenue models for Sarepta’s follow-on agents under development, which we have probability-adjusted based on their stage of development (33%-50%),” the analyst wrote.
Simeonidis added that although the price target was ~$50 higher than Sarepta’s current share price, it incorporated conservative assumptions.
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Latest Ratings for SRPT
|Dec 2016||JP Morgan||Initiates Coverage On||Overweight|
|Dec 2016||Goldman Sachs||Initiates Coverage On||Neutral|
|Oct 2016||Morgan Stanley||Initiates Coverage On||Equal-Weight|
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