For Sarepta, Exondys 51 Might Be Just The Beginning: Credit Suisse Starts At Outperform

Sarepta Therapeutics Inc SRPT shares nearly doubled in September after the FDA granted accelerated approval for the company’s first drug, EXONDYS 51. However, Credit Suisse analyst Alethia Young believes Sarepta is just getting started.

Credit Suisse is anticipating the first EXONDYS 51 sales in Q4 of 2016 and sees a number of things to like about the drug and the stock. Young is confident that EXONDYS 51 will gain European approval in the near future, and Credit Suisse is predicting Sarepta could start seeing early success with its Exon 53 program next year.

Related Link: Celgene Shares Higher On Positive Crohn's Patient Data

Young estimates Sarepta’s drugs could eventually treat 80 percent of Duchenne Muscular Dystrophy (DMD) patients.

Credit Suisse projects roughly $400 million in annual sales for EXONDYS 51 by 2020, but the firm also sees value elsewhere.

“We estimate unadjusted peak sales for Exon 53 and 45 indications of ~$670 million and ~$700 million respectively and assume a 15 percent probability of success to each exon target,” Young explained.

Credit Suisse has initiated coverage of Sarepta at Outperform with a $68 price target. Young added that the stock’s risk/reward is extremely compelling. She sees upside as high as $100 with a downside floor as high as $40.

At last check, Sarepta was up 0.88 percent at $49.37.

Full ratings data available on Benzinga Pro.