On Friday, UBS analyst Colin Bristow increased the price target on Sarepta Therapeutics (NASDAQ:SRPT) shares to $167 from $164 while maintaining a Buy rating on the stock. The adjustment follows Sarepta's fourth-quarter earnings report and subsequent investor call, which led to a roughly 7% decline in the company's share price.
During the earnings call, Sarepta management did not provide specific updates on the ongoing review of their drug, noting it was too early in the review period to comment on progress.
This review follows the FDA's acceptance of the efficacy supplement on February 16, 2024. The company also mentioned that a significant portion of the current labeled population, children aged 4-5, are expected to have been treated with their drug Elevidys by the first half of 2024.
Despite the lack of detailed positive commentary, Bristow highlighted that nothing incrementally negative was disclosed regarding the likely outcome of the drug's label. The analyst sees an increasing likelihood for a full ambulatory indication for the drug, citing recent public comments from Peter Marks, a notable figure in the field.
Investors, according to the analyst, remain keenly interested in the label outcome for Sarepta's drug and any data that could provide insight into this decision. The market's anticipation is built around the potential impact of the label expansion on Sarepta's market positioning and future revenue streams.
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