Seeking Alpha

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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