Sarepta Therapeutics Inc

Sarepta Therapeutics, Inc. (NASDAQ: SRPT) is a commercial-stage biopharmaceutical company. The Company is focused on helping patients through the discovery and development of ribonucleic acid (RNA)-targeted therapeutics, gene therapy and other genetic therapeutic modalities for the treatment of rare diseases.

Recent Business and Financial Updates

• First Quarter 2024 Financial Results: In the first quarter of 2024, net product revenues amounted to USD 359.5 million, marking a substantial 55% increase compared to the corresponding quarter of the previous year. Specifically, ELEVIDYS net revenues for the quarter totaled USD 133.9 million, demonstrating robust performance in product sales. The company achieved GAAP earnings of USD 36.1 million for the first quarter of 2024, reflecting profitability in its operations. On a non-GAAP basis, earnings for the same period reached USD 78.2 million, underscoring the company's strong financial performance and operational efficiency.
• Key Survival Benefits of Eteplirsen Treatment: The analysis of eteplirsen treatment outcomes in patients with Duchenne muscular dystrophy (DMD) reveals substantial benefits over natural history controls. Patients receiving eteplirsen experienced a notable 66% reduction in the risk of death compared to untreated counterparts. Longer treatment durations, particularly exceeding four years, showed an 85% lower risk of death compared to shorter treatments under two years. Median survival ages varied accordingly: patients treated for over four years achieved a median survival of 32.8 years, while those treated for two to four years had a median survival of 29.4 years. Patients treated with eteplirsen for less than two years had a median survival of 28.1 years, slightly higher than the natural history median of 27.4 years. Importantly, patients treated for more than two years have not yet reached a median survival age. In the critical age group of 10 to 28 years, eteplirsen treatment demonstrated a 42% lower risk of death compared to age-matched counterparts in the natural history cohort, highlighting its potential to significantly enhance survival outcomes in DMD patients.
• S. FDA Review of ELEVIDYS Efficacy Supplement: Archer Pharmaceuticals is currently awaiting the U.S. Food and Drug Administration's (FDA) Priority Review of its efficacy supplement for ELEVIDYS (delandistrogene moxeparvovec-rokl). The FDA's review is scheduled to conclude by June 21, 2024. Following the acceptance of the Biologics License Application (BLA) in February, the FDA has indicated no plans to convene an advisory committee meeting regarding the supplement. This submission aims to achieve two primary objectives: expanding the approved indication for ELEVIDYS to encompass the treatment of Duchenne muscular dystrophy (DMD) patients with confirmed mutations in the DMD gene, and transitioning ELEVIDYS from accelerated to traditional approval status.
• Real-World Evidence on Eteplirsen Treatment Published: In March 2024, Muscle & Nerve published findings from a study presenting compelling real-world evidence on the efficacy of eteplirsen treatment. The analysis compared outcomes in patients treated with eteplirsen to a controlled natural history cohort of Duchenne patients. Results indicated that patients receiving eteplirsen (n=579) had a median survival age of 32.8 years, which represents a significant increase of 5.4 years compared to the median survival age of 27.4 years observed in the natural history studies (n=1,224). Furthermore, earlier initiation and prolonged treatment with eteplirsen were associated with notable survival benefits.

Technical Observation (on the daily chart):

The Relative Strength Index (RSI) over a 14-day period stands at a value of 76.32, upward trending and currently inside the overbought zone, with expectations of a consolidation or some correction before the continuation of the uptrend. Additionally, the stock's current positioning is above both the 50-period SMA and 200-period EMA, which may serve as dynamic short to medium-term support levels.

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Watch’ rating has been given to Sarepta Therapeutics, Inc. (NASDAQ: SRPT) at the current market price of USD 166.88 as of June 24, 2024, at 07:10 am PDT. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is June 24, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.