JMP On Sarepta: 'We Maintain Our 10% Chance Of First-Cycle Approval For Eteplirsen'

Benzinga has learned that Dr. Ronald Farkas, leader of the clinical team for Sarepta Therapeutics Inc’s SRPT Eteplirsen NDA, has left the FDA. This may lend upside to the company’s shares “due to a read-through that is another step toward approval,” JMP Securities’ Liisa A. Bayko said in a report.

Bayko reiterated a Market Underperform rating for Sarepta, with a price target of $10.

Related Link: Exclusive: Dr. Ron Farkas, Eteplirsen's Harshest Critic, Has Left The FDA

Impact Of Departure

The departure of Farkas has not yet been officially confirmed. Bayko noted, however, that Farkas is no longer listed in the employee directory of the U.S. Department of Health and Human Services.

“If he has indeed departed, the reason is not known but could be related to eteplirsen,” she said.

Given the absence of additional information, the analyst mentioned that the probability of a first-cycle approval remained at 10 percent for Eteplirsen. She added, however, that there could be a “large swing” in valuation in case approval is accelerated. The range could be between upside to ~$65 and downside to ~$5.

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