George Rho
Research analyst, long/short equity, special situations, arbitrage

Sarepta Therapeutics: Irrational Exuberance

Just a year ago, Sarepta Therapeutics, Inc. (NASDAQ: SRPT), then known as AVI BioPharma, was a small, little-known developmental stage biopharmaceutical company. It had an undistinguished 32-year history, characterized by year after year of red ink and no marketable product. At the end of last June, the money-losing enterprise had only $16.1 million in working capital, a stock that was trading at 63 cents a share, and a market capitalization of $85 million.

So much has happened since then beyond the cosmetic adoption of a new name. This includes a relocation of operations, changes in executive leadership, and a substantial fortification of the balance sheet. Perhaps most significant, the biotech now sports a market capitalization that's north of $1...

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