Wedbush bullish on Sarepta, initiates with an Outperform

As previously reported, Wedbush initiated coverage of Sarepta (SRPT) with an Outperform rating and $32 price target The firm sees the early summer selloff due to Elevidys patient deaths as overdone, and even after the subsequent recovery following the Food and Drug Administration’s quick reversal for Elevidys to remain available to ambulatory patients, Wedbush sees further upside from potential re-approval in non-ambulatory patients as well. On exon-skipping products that have stably generated close to $1B in annual sales, despite the recent negative ESSENCE study data and emerging competition, the firm projects continued patient uptake based on a high compliance rate that Sarepta has reported, comprehensive real world data supporting clinical benefit, and favorable key opinion leader feedback.