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Sarepta Therapeutics (SRPT)
NASDAQ:SRPT
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Sarepta Therapeutics
(NASDAQ:SRPT)
Rating:54Neutral
Price Target:
$36.00
▼( -10.11% Downside)
Positive Factors
Financial Milestones
Sarepta is eligible for up to $1.7B in development, regulatory, and sales milestones as well as tiered royalties on net sales of Elevidys outside the US.
Market Expansion
Following the approval in Japan, ELEVIDYS is now approved in a total of nine countries.
Regulatory Approval
Elevidys was just approved in Japan, marking the first global approval to include DMD patients younger than 4 years old.
Negative Factors
Insurance Coverage Challenges
Recent conversations with payers indicate Elevidys is not unanimously being covered in the expanded label.
Market Penetration Uncertainty
Overall, reservations about broad ELEVIDYS uptake remain; skepticism exists regarding penetration into the non-ambulatory and older populations, estimated to comprise ~80% of DMD.
Sales Trajectory Concerns
There is concern about Elevidys' future sales trajectory after a fatal case of acute liver failure in an older nonambulatory patient.
Sarepta Therapeutics (SRPT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.93B
Dividend YieldN/A
Average Volume (3M)4.31M
Price to Earnings (P/E)19.6
Beta (1Y)1.05
Revenue Growth59.15%
EPS Growth-1881.09%
CountryUS
Employees1,372
SectorHealthcare
Sector Strength44
IndustryBiotechnology
Share Statistics
EPS (TTM)-4.60
Shares Outstanding98,277,030
10 Day Avg. Volume7,241,425
30 Day Avg. Volume4,305,867
Financial Highlights & Ratios
PEG Ratio0.17
Price to Book (P/B)2.29
Price to Sales (P/S)0.00
P/FCF Ratio-10.40
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue0.59
Enterprise Value/Gross Profit2.42
Enterprise Value/Ebitda5.41
Forecast
1Y Price Target
$94.18Price Target Upside135.16% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering23
Sarepta Therapeutics Business Overview & Revenue Model
Company DescriptionSarepta Therapeutics, Inc., a commercial-stage biopharmaceutical company, focuses on the discovery and development of RNA-targeted therapeutics, gene therapies, and other genetic therapeutic modalities for the treatment of rare diseases. It offers EXONDYS 51 injection to treat duchenne muscular dystrophy (duchenne) in patients with confirmed mutation of the dystrophin gene that is amenable to exon 51 skipping; and VYONDYS 53 for the treatment of duchenne in patients with confirmed mutation of the dystrophin gene that is amenable to exon 53 skipping. The company is also developing AMONDYS 45, a product candidate that uses phosphorodiamidate morpholino oligomer chemistry and exon-skipping technology to skip exon 45 of the dystrophin gene; SRP-5051, a peptide conjugated PMO that binds exon 51 of dystrophin pre-mRNA; SRP-9001, a DMD micro-dystrophin gene therapy program; and SRP-9003, a limb-girdle muscular dystrophies gene therapy program. It has collaboration agreements with F. Hoffman-La Roche Ltd; Nationwide Children's Hospital; Lysogene; Duke University; Genethon; and StrideBio. The company was incorporated in 1980 and is headquartered in Cambridge, Massachusetts.
How the Company Makes MoneySarepta Therapeutics generates revenue primarily through the sales of its approved therapies for Duchenne muscular dystrophy. The company has successfully commercialized three exon-skipping therapies—Exondys 51, Vyondys 53, and Amondys 45—each targeting specific mutations in the DMD gene, allowing for a tailored approach to treatment. Additionally, Sarepta engages in collaboration and licensing agreements with other pharmaceutical and biotechnology companies, which provide both upfront payments and potential milestone payments tied to developmental, regulatory, and sales achievements. These strategic partnerships enhance Sarepta's research capabilities and expand its pipeline of potential therapies, further contributing to its revenue streams.
Sarepta Therapeutics Financial Statement Overview
Summary
Sarepta Therapeutics shows strong revenue growth and profitability improvements. However, high leverage and negative cash flow remain concerns, despite some improvements.Income Statement
Sarepta Therapeutics has demonstrated significant revenue growth over the years, with a notable increase from $380.8M in 2019 to $1.9B in 2024. The gross profit margin is strong, consistently at 100% in 2024, indicating effective cost management. The company turned profitable in 2024 with a net profit margin of 12.37%, a significant improvement from the previous losses. However, EBIT and EBITDA margins have fluctuated, with a positive 11.47% and 11.47% respectively in 2024, suggesting better operational efficiency recently.75
Positive
Balance Sheet
The balance sheet shows a high debt-to-equity ratio of 0.87 in 2024, indicating a moderate level of leverage. The return on equity has improved to 15.39% in 2024, reflecting effective use of equity to generate profits. Equity ratio stands at 38.55%, which is reasonable but suggests that a significant portion of assets is financed through debt.68
Positive
Cash Flow
While Sarepta Therapeutics has shown improvement in free cash flow, it remains negative in 2024 at -$342.7M, though improved from -$588.3M in 2023. The operating cash flow to net income ratio is negative, indicating challenges in converting income into cash. However, the recent reduction in net debt is a positive indicator of improving financial health.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.90B | 1.24B | 933.01M | 701.89M | 540.10M | Gross Profit |
| 1.58B | 1.09B | 793.02M | 604.84M | 476.72M | EBIT |
| 218.08M | -267.82M | -536.20M | -449.71M | -564.16M | EBITDA |
| 333.06M | -439.20M | -582.12M | -306.08M | -453.38M | Net Income Common Stockholders |
| 235.24M | -535.98M | -703.49M | -418.78M | -554.13M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.35B | 1.68B | 1.99B | 2.12B | 1.94B | Total Assets |
| 3.96B | 3.26B | 3.13B | 3.15B | 2.98B | Total Debt |
| 1.34B | 1.40B | 1.62B | 1.14B | 1.07B | Net Debt |
| 240.06M | 968.38M | 650.58M | -977.48M | -429.79M | Total Liabilities |
| 2.44B | 2.41B | 2.74B | 2.22B | 2.22B | Stockholders Equity |
| 1.53B | 859.34M | 384.95M | 928.01M | 761.76M |
| Cash Flow | Free Cash Flow | |||
| -342.74M | -588.34M | -356.17M | -481.66M | 25.26M | Operating Cash Flow |
| -205.79M | -500.99M | -325.35M | -443.17M | 107.47M | Investing Cash Flow |
| 755.56M | -165.80M | -1.05B | 495.41M | -121.72M | Financing Cash Flow |
| 124.81M | 125.00M | 232.51M | 561.57M | 682.32M |
Sarepta Therapeutics Technical Analysis
Negative
40.05
Price Trends
59.29
Negative
86.42
Negative
106.43
Negative
Market Momentum
-7.02
Negative
33.73
Neutral
71.20
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SRPT, the sentiment is Negative. The current price of 40.05 is below the 20-day moving average (MA) of 47.56, below the 50-day MA of 59.29, and below the 200-day MA of 106.43, indicating a bearish trend. The MACD of -7.02 indicates Negative momentum. The RSI at 33.73 is Neutral, neither overbought nor oversold. The STOCH value of 71.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SRPT.
Sarepta Therapeutics Risk Analysis
Sarepta Therapeutics disclosed 62 risk factors in its most recent earnings report. Sarepta Therapeutics reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
Our existing and any future indebtedness could adversely affect our ability to operate our business. Q4, 2024
2.
Failure to comply with data privacy and security laws and regulations could adversely affect our operating results and business. Q4, 2024
Sarepta Therapeutics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $5.22B | 14.54 | 25.71% | ― | -12.31% | -17.53% | |
54 Neutral | $3.93B | 19.61 | -23.61% | ― | 59.15% | -1881.09% | |
53 Neutral | $5.33B | ― | -282.16% | ― | 72.16% | 9.65% | |
53 Neutral | $5.24B | 3.07 | -43.58% | 2.80% | 16.87% | -0.11% | |
52 Neutral | $7.54B | ― | -36.68% | ― | -100.00% | 5.49% | |
48 Neutral | $6.54B | ― | -47.71% | ― | 99.19% | 48.43% | |
47 Neutral | $5.36B | ― | -20.00% | ― | 112.46% | 54.33% |
* Healthcare Sector Average
Performance Comparison
SRPT
Sarepta Therapeutics
40.05
-87.08
-68.50%
ALKS
Alkermes
30.53
6.53
27.21%
BPMC
Blueprint Medicines
101.51
-0.88
-0.86%
AXSM
Axsome Therapeutics
105.76
31.58
42.57%
RVMD
Revolution Medicines
38.74
0.61
1.60%
LEGN
Legend Biotech
28.33
-11.17
-28.28%
Sarepta Therapeutics Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: -14.33%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant revenue growth and strong demand projections for the future. However, challenges such as the tragic patient safety incident, administrative delays, and site capacity imbalances have led to a downward revision of revenue guidance. Despite these challenges, the company remains optimistic about long-term demand and continues to work on addressing the issues.Q1-2025 Updates
Positive Updates
Strong Revenue Growth
Sarepta achieved $612 million in total net product revenue for the first quarter of 2025, representing 70% growth over the same quarter last year.
ELEVIDYS Sales Increase
ELEVIDYS achieved sales of $375 million in the quarter, representing a 180% increase over the same quarter last year.
Successful PMO Franchise Growth
The PMO franchise grew 5%, achieving $237 million for the quarter.
Positive Long-Term Demand Outlook
Despite short-term challenges, Sarepta projects a pickup in demand beginning in the summer and extending through the remainder of the year, maintaining confidence in the long-term demand outlook for ELEVIDYS.
Negative Updates
Revised Revenue Guidance
Sarepta revised its net product revenue guidance for the year to $2.3 billion to $2.6 billion across its four approved therapies due to various factors including a safety event and administrative delays.
Patient Safety Incident
A patient treated with ELEVIDYS suffered acute liver failure and passed away, causing delays in treatment schedules as families sought more information.
Administrative Delays
The administrative path from initial paperwork to infusion is taking about one month to six weeks longer than original estimates, impacting revenue timing.
Site Capacity Imbalance
60% of current revenue comes from top sites, many of which are fully booked out to 12 months, necessitating a focus on engaging sites with more capacity.
Company Guidance
During the call, Sarepta Therapeutics updated its guidance for the year, projecting net product revenue between $2.3 billion and $2.6 billion across its four approved therapies. This adjustment reflects several factors, including a significant safety event involving their gene therapy product ELEVIDYS, which contributed to delays in patient treatment. The company reported first-quarter total net product revenue of $612 million, marking a 70% increase compared to the previous year, with ELEVIDYS achieving sales of $375 million, a 180% increase. While the PMO franchise grew by 5% to $237 million, the company anticipates a 20% revenue decrease in Q2 compared to Q1 due to ongoing impacts from the safety event and administrative challenges. Sarepta emphasized its commitment to improving patient access and education while addressing site capacity issues to support revenue growth for the remainder of 2025.Sarepta Therapeutics Corporate Events
Executive/Board ChangesPrivate Placements and FinancingBusiness Operations and Strategy
Sarepta Therapeutics Announces Leadership Change and Equity Deal
Neutral
Nov 26, 2024
Sarepta Therapeutics is undergoing a leadership change as Ryan Brown steps down, with Cristin Rothfuss set to succeed him. Concurrently, Sarepta is strengthening its financial position through a significant $325 million equity transaction with Arrowhead, purchasing over 11 million shares. This move includes lock-up and standstill provisions, limiting Sarepta’s trading and acquisition activities for specified periods, highlighting strategic stock management in the biotech sector.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.