Negative catalysts loom ahead for Sarepta, says H.C. Wainwright

H.C. Wainwright analyst Mitchell Kapoor reiterated a Sell rating and $0 price target on Sarepta (SRPT) after the European Medicines Agency’s Committee for Medicinal Products for Human Use recommended not granting a marketing authorization for Sarepta’s Elevidys for the treatment of Duchenne muscular dystrophy. The firm said a series of negative catalysts for Sarepta loom ahead, noting that if the FDA follows the EMA’s decision tor eject approval, it would expect Elevidys to never return to the market in any category of DMD patients. If the FDA requires a robust safety study to permit Elevidys on the U.S. market, the analyst sees a lengthy timeline to a potential return, and a blow to Sarepta shares, the analyst tells investors in a research note. The firm added that it has yet to see any results from the confirmatory phosphorodiamidate morpholino oligomer trials as well.