On Thursday, BMO Capital maintained its optimistic stance on Sarepta Therapeutics (NASDAQ:SRPT), a biopharmaceutical company, reiterating an Outperform rating and a $200.00 price target for the stock. Sarepta Therapeutics has recently found itself in a potentially advantageous position in the Duchenne muscular dystrophy (DMD) market following the outcome of the Elevidys PDUFA.
According to BMO Capital, Sarepta could effectively monopolize the DMD market due to the potential of their product Elevidys, which might generate approximately $30 billion in total U.S. sales from the currently diagnosed population. Additionally, annual sales could increase by about $1 billion from new diagnoses, barring any significant competition.
The firm also sees opportunities for further growth through the expansion of Elevidys outside the U.S., the commercialization of limb-girdle muscular dystrophy (LGMD) gene therapies, which could present a similar market opportunity as DMD, and through mergers and acquisitions activities.
BMO Capital expects that each earnings announcement related to Elevidys will act as a key catalyst for the company's stock performance. The firm remains confident that Sarepta Therapeutics will continue to outperform in the near term, backed by the company's strategic positioning and anticipated growth drivers.
In other recent news, Sarepta Therapeutics has garnered attention due to significant developments. The FDA granted an expanded approval for Elevidys, a drug developed by Sarepta, to treat both ambulatory and non-ambulatory Duchenne muscular dystrophy patients aged four and older.
Following this approval, several firms, including Citi, Mizuho Securities, BofA Securities, and Baird, revised their outlooks and raised their price targets for Sarepta. Citi downgraded Sarepta's shares from Buy to Neutral but raised the price target to $176, reflecting recent developments and valuation adjustments.
Goldman Sachs (NYSE:GS) continued to endorse Sarepta with a Buy rating, projecting peak revenue for Elevidys to reach $2.6 billion by 2028. Similarly, Mizuho Securities increased its price target to $200, highlighting the potential for Elevidys sales to surpass long-term consensus estimates. BofA Securities raised its price target to $213, emphasizing the drug's potential market reach. Baird also lifted its price target to $200, following the FDA's endorsement of the drug's safety and efficacy.
These recent developments underscore the significance of Elevidys' expanded approval and its potential impact on Sarepta's future revenue prospects. The company is also in partnership with Roche (LON:0QQ6) for the global distribution of Elevidys, which further emphasizes Sarepta's growth trajectory. Although Citi anticipates gradual growth for Sarepta's stock based on positive developments, the firm also highlights the absence of significant near-term catalysts until the Phase 3 ENVISION study results become available in 2026.
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