Sarepta Therapeutics (NASDAQ:SRPT) CEO Edward Kaye has resigned unexpectedly but will stay on as a director. He took the helm on an interim basis in 2015 as the company pursued the controversial marketing approval of EXONDYS 51. He was also Sarepta's Chief Medical Officer.
Janney's Debjit Chattopadhyay: "Let the M&A speculation begin" considering the Q1 beat and guidance raise (BUY/$65).
Baird's Brian Skorney: Bulls likely to argue that CEO departure signals the company is for sale, bears see it as a negative for CEO to leave in the middle of a drug launch. CEO role "not a job for someone who wants to focus on medical research." Concerns about reimbursement should ease after management comments on Anthem coverage (OUTPERFORM/$102).
William Blair's Tim Lugo: New CEO likely to be commercially focused (OUTPERFORM).
Leerink's Joseph Schwartz: "Prospect of a sale may resonate with some investors" (OUTPERFORM/$52).
Needham's Chad Messer: Cash may be sufficient to fund operations until Sarepta turns a profit next year. About 1,400 patients should be under treatment with EXONDYS 51 by the end of 2018 implying $500M in annual U.S. revenue (BUY/$75).
Shares are up a fraction premarket.