RBC stays at 'buy' on Sarepta Therapeutics, believes in 'ultimate success'

10 October 2019

(Sharecast News) - Analysts at RBC reiterated their recommendation to 'buy' shares of Sarepta, expressing confidence in the efficacy of the gene therapy specialist's muscular distrophy programmes, telling clients that they believed they would "ultimately succeed".
"We acknowledge sentiment remains a headwind and may continue to be until there is more manufacturing and regulatory clarity,

but we believe current levels will prove to be an opportune medium-term entry point - no change to estimates or price target," analysts Brian Abrahams and Beau Miller wrote in a research report sent to clients.

They attributed share price weakness in the aftermath of the recent World Muscle conference to doubts around whether the functional gains achieved by four patients in study for the treatment of limb girdle muscular distrophy might not be due to steroids and the study results presented at the same conference by rival Northstar.

However, a previous study using similiar steroid dosing controls no impact was found on patients with LGMD2D (a closely related sarcoglycanopathy) at the 90-day interval, unlike for Sarepta's gene therapy, which also revealed a reduction in creatine kinase levels after nine months.

"NSAA results from NS Pharma's viltolarsen highlight, rather than diminish, the significance of gains achieved in SRPT's microdystrophin gene therapy study [...]," they added.

The analysts also stood by their $203.0 target price on the shares.