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Sarepta Prices Newly-Approved DMD Drug, Cowen Upgrades Stock To Outperform

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Sarepta Prices Newly-Approved DMD Drug, Cowen Upgrades Stock To Outperform

Sarepta Therapeutics Inc (NASDAQ: SRPT) hosted a conference call Tuesday to discuss its newly approved drug, Exondys 51 (eteplirsen) injection, which happens to be the first drug approved to treat patients with Duchenne muscular dystrophy (DMD).

Sarepta said Exondys 51 will be available in a 2mg vial ($1,600) and a 10mg vial ($8,000). Analysts at Cowen and Company were encouraged with the company's pricing and upgraded the stock to Outperform from Market Perform with a $64 price target.

Related Link: 2022 Will Bring New Questions For Sarepta; Jefferies Raises Price Target From $7 To $50

The analysts, led by Ritu Baral, noted that using an average patient weight of 25kg, the expected average net price per patient per year would be around $300,000 and an average gross price of $665,000 for a 25kg patient.

Baral added that his estimates could prove to be "conservative," especially as Sarepta will likely increase disease and patient awareness. However, the company's management disclosed it will not provide any near-term guidance on launch metrics, including market assumptions, gross to net discounting or sales potential.

Baral said his discounted cash flow-based valuation derives a value of $56 per share for Exondys 51 in the US alone. In addition, the company is expecting its cost of goods sold (COGS) to be in the "low teens percentage" of net sales which is "substantially" below the analyst's prior estimates.

Baral is also projecting peak sales of approximately $550 million in the US and $400 million in the European Union, which has at least a 55 percent chance of success and represents an incremental $8 per share of value.

Latest Ratings for SRPT

DateFirmActionFromTo
May 2019MaintainsBuy
May 2019MaintainsOverweight
May 2019MaintainsOutperform

View More Analyst Ratings for SRPT
View the Latest Analyst Ratings

Posted-In: Cowen and Company DMD Duchenne Muscular Dystrophy eteplirsen Exondys 51Analyst Color Upgrades Analyst Ratings Best of Benzinga

 

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