Roche decision could hurt Sarepta in U.S., says H.C. Wainwright

H.C. Wainwright analyst Mitchell Kapoor reiterates a Sell rating on Sarepta (SRPT) with a $5 price target saying Roche’s (RHHBY) new placebo-controlled Phase 3 study raises the risk that Elevidys fails the North Star Ambulatory Assessment efficacy test again. The EMBARK study already failed to show statistical significance on NSAA, and Roche is trying again, the firm points out. Roche is now putting Elevidys “back into another randomized test that could further crack the external-control argument if NSAA misses again,” the analyst tells investors in a research note. H.C. Wainwright believes this creates limited upside for Sarepta and meaningful downside for the U.S. franchise that still drives the shares. Sarepta’s core revenue stream is the U.S. Elevidys business, not Europe, the firm contends.

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