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FDA sets June 21 review date for Sarepta's ELEVIDYS

Published 16/02/2024, 12:16
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CAMBRIDGE, Mass. - Sarepta Therapeutics, Inc. (NASDAQ:SRPT), a biopharmaceutical company focused on rare diseases, has received Priority Review designation from the U.S. Food and Drug Administration (FDA) for its Efficacy Supplement to the Biologics License Application (BLA) for ELEVIDYS (delandistrogene moxeparvovec-rokl). The review goal date is set for June 21, 2024.

The Efficacy Supplement aims to broaden the indication for ELEVIDYS to include the treatment of Duchenne muscular dystrophy (DMD) patients with a confirmed mutation in the DMD gene, irrespective of age and ambulation status. Additionally, the supplement seeks to transition ELEVIDYS from accelerated approval to traditional approval.

Doug Ingram, president and CEO of Sarepta Therapeutics, expressed the company's commitment to working closely with the FDA to expedite the review process, acknowledging the critical importance of timely treatment for those affected by Duchenne muscular dystrophy.

ELEVIDYS, a gene therapy product, is currently indicated for the treatment of ambulatory pediatric patients aged 4 through 5 years with DMD and a confirmed mutation in the DMD gene. It is delivered as a single-dose intravenous infusion and functions by introducing a gene that codes for micro-dystrophin, a protein whose absence is the root cause of DMD.

The therapy was granted accelerated approval based on the expression of micro-dystrophin in skeletal muscle observed in patients treated with ELEVIDYS. The EMBARK study is serving as the postmarketing confirmatory trial to verify the clinical benefit of the treatment.

The FDA has confirmed that it does not plan to hold an advisory committee meeting to discuss the supplement. Sarepta Therapeutics has a collaboration agreement with Roche (LON:0QQ6), which is responsible for regulatory approvals and distribution of ELEVIDYS outside the United States.

This news is based on a press release statement by Sarepta Therapeutics.

InvestingPro Insights

As Sarepta Therapeutics (NASDAQ:SRPT) anticipates the FDA's decision on the Efficacy Supplement for ELEVIDYS, investors are closely monitoring the company's financial health and market performance. Here are some curated insights from InvestingPro that may provide additional context to the company's current situation:

InvestingPro Data shows that Sarepta Therapeutics has a market capitalization of 11.68 billion USD, reflecting the market's valuation of the company. Despite the challenges, the company has demonstrated notable revenue growth over the last twelve months as of Q3 2023, with an increase of 26.13%. This is further bolstered by an impressive quarterly revenue growth of 44.1% in Q3 2023, indicating a strong upward trajectory in sales.

However, the financial metrics also reveal areas of concern. The company's P/E Ratio stands at -15.87, and when adjusted for the last twelve months as of Q3 2023, it further declines to -25.99. This suggests that the market currently does not expect earnings to cover the share price in the near term. Additionally, gross profit margins are relatively weak at 7.09%, which could be indicative of cost challenges or pricing pressures in the biopharmaceutical sector.

InvestingPro Tips highlight that analysts do not anticipate Sarepta to be profitable this year, which aligns with the negative P/E ratios observed. Furthermore, the company's Price / Book multiple is high at 15.28, suggesting that the stock is trading at a premium relative to the company's book value. This may be a reflection of investor expectations for future growth or the value of intangible assets like patents and proprietary technologies.

For investors seeking a more comprehensive analysis, there are additional InvestingPro Tips available, including insights on the company's debt levels, liquidity, and historical returns. To access these insights and make more informed investment decisions, consider subscribing to InvestingPro. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 6 more InvestingPro Tips available for Sarepta Therapeutics that could provide deeper understanding of its financial position and market performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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