Wedbush Boosts Target On Sarepta Shares From $66 To $72 Amid US Launch Of Exondys 51

Commenting on the U.S. commercial launch of Sarepta Therapeutics Inc’s SRPT Exondys 51, Wedbush’s Heather Behanna said that the initial adoption would likely be rapid although logistical challenges may continue.

The analyst maintained an Outperform rating on Sarepta, while raising the price target from $66 to $72.

Behanna believes the recent concerns surrounding reimbursement appear to be overdone and raised the peak revenues from $420 million to $439 million, adding that by 2022, more than 1,000 boys, or ~80 percent of genotyped patients in the US, would likely be on therapy.

Related Link: Sarepta Shares Fall After Anthem Blue Cross Finds Issue With Eteplirsen

Rapid Start

“In our view, there is near unprecedented awareness of Exondys 51 and we expect many families to be queued up for drug,” Behanna wrote. She added, however, that Q4 sales could be modest, since it may take 30-90 days for reimbursement and it may take time to schedule appointments for infusion.

The analyst expects penetration to be the highest in ambulant boys, followed by younger ambulant boys. A lower number of older boys are likely to be on drug, since fewer are genotyped and it could be difficult to get older boys to centers for weekly infusions.

Europe Approval

Behanna awaits more clarity on the EU regulatory path for Exondys 51, and estimates a 50 percent chance of success in the region with a 5 percent royalty to BioMarin Pharmaceutical Inc. BMRN [Rated: Neutral] “assuming conservatively that Sarepta does not win its appeal,” Behanna mentioned.

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