Benzinga - Shares of Sarepta Therapeutics Inc (NASDAQ: SRPT) jumped in early trading on Wednesday, after the company reported an earnings beat for its fourth quarter.
Information shared by management following the mid-cycle review of SRP-9001 increases the confidence in its early approval, according to Morgan Stanley.
The Analyst: Matthew Harrison upgraded the rating for the company from Equal-Weight to Overweight, while raising the price target from $141 to $187.
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The Thesis: Management’s commentary suggests that the FDA is “comfortable with the surrogate endpoint and acknowledged no safety related issues,” Harrison said in the upgrade note.
“Our confidence in the eventual approval of SRP-9001 is also supported by the precedent for dystrophin as an accelerated endpoint, the required confirmatory EMBARK trial is fully enrolled (reading out in 4Q23) and the risk/benefit skews positive given the manageable safety profile,” the analyst further wrote.
He raised the probability of success for SRP-9001 from 60% to 75%.
SRPT Price Action: Shares of Sarepta Therapeutics had spiked by 22.90% to $150.10 at the time of publication Wednesday.
Image: Courtesy of Sarepta
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