Sarepta falls on JMP downgrade; firm questions value of Prosensa news


JMP's Liisa A. Bayko has downgraded Sarepta (SRPT -5.1%) to Market Perform a week after shares flew higher with the help of a clinical data update from Prosensa (RNA -2.3%) on the performance of its Drisapersen drug, which (like Sarepta's Eteplirsen) aims to treat duchenne muscular dystrophy (DMD).

Bayko calls Prosensa's data "weak," and thinks investors may be overvaluing its positive implications for Sarepta. She also thinks "the FDA could request a second study from Prosensa, putting further pressure on the already scarce patient population available for clinical trials."

Though still considering Eteplirsen "a best-in-class drug that will eventually be approved [to treat] DMD," Bayko is worried about the lengthy amount of time expected to obtain "pivotal data and approval," as well as a lack of near-term catalysts.

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