Citi analyst Yigal Nochomovitz maintained a Sell rating on Sarepta Therapeutics yesterday and set a price target of $8.00.
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Yigal Nochomovitz has given his Sell rating due to a combination of factors surrounding Sarepta Therapeutics’ recent developments. The company’s announcement about the FDA’s approval to begin dosing non-ambulatory DMD patients with sirolimus in their ENDEAVOR study raises concerns. While the study aims to mitigate risks associated with AAV gene therapy, the use of sirolimus introduces significant risks of severe opportunistic infections, as documented in primary literature and highlighted in the Black Box warning on Rapamune’s label.
Moreover, the small sample size of approximately 25 patients and the limited follow-up time may not provide sufficient data to support the approval or usage of Elevidys in non-ambulatory patients, especially given the notable frequency of serious liver toxicity events. Additionally, the differences in the immunosuppression regimen compared to other studies, such as Regenxbio’s, which uses a triplet regimen, further contribute to the uncertainty. These factors, combined with the expected share price return of -57.7%, underpin the Sell rating.
In another report released on November 17, H.C. Wainwright also reiterated a Sell rating on the stock with a $5.00 price target.