Sarepta Therapeutics (SRPT, Financial) has been downgraded by TD Cowen, moving from a Buy to a Hold rating. The firm has also adjusted its price target for the stock, reducing it from $62 to $24. Concerns have arisen over the potential for the FDA to withdraw approval for Elevidys, particularly impacting both non-ambulatory and ambulatory patients if community support declines. This concern is intensified by reports of a 30% increase in liver function test levels, prompting a reassessment of Elevidys’ safety for all Duchenne muscular dystrophy (DMD) patients. The revised price target reflects a discounted cash flow valuation of Elevidys, considering the likelihood of its market withdrawal.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 24 analysts, the average target price for Sarepta Therapeutics Inc (SRPT, Financial) is $57.67 with a high estimate of $185.00 and a low estimate of $10.00. The average target implies an upside of 167.46% from the current price of $21.56. More detailed estimate data can be found on the Sarepta Therapeutics Inc (SRPT) Forecast page.
Based on the consensus recommendation from 27 brokerage firms, Sarepta Therapeutics Inc's (SRPT, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Sarepta Therapeutics Inc (SRPT, Financial) in one year is $269.57, suggesting a upside of 1150.32% from the current price of $21.56. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Sarepta Therapeutics Inc (SRPT) Summary page.
SRPT Key Business Developments
Release Date: May 06, 2025
- Total Net Product Revenue: $612 million, representing 70% growth over the same quarter last year.
- ELEVIDYS Revenue: $375 million, a 180% increase year-over-year.
- PMO Franchise Revenue: $237 million, a 5% increase over the prior year.
- Total Revenues: $745 million, an 80% increase year-over-year.
- Cash Position: $647 million in cash, cash equivalents, investments, and restricted cash.
- Operating Loss (GAAP): $300 million, including $584 million R&D expense related to Arrowhead collaboration.
- Operating Profit (Non-GAAP): $334 million, excluding Arrowhead transaction.
- Revised Revenue Guidance for 2025: $2.3 billion to $2.6 billion.
- R&D Expenses (GAAP): $773 million, a year-over-year increase of $573 million.
- SG&A Expenses (GAAP): $134 million, up 5% year-over-year.
- Net Loss (GAAP): $448 million or $4.60 per share.
- Net Loss (Non-GAAP): $332 million or $3.42 per share.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Sarepta Therapeutics Inc (SRPT, Financial) achieved $612 million in total net product revenue for Q1 2025, representing a 70% growth over the same quarter last year.
- ELEVIDYS sales reached $375 million in Q1, marking a 180% increase over the same quarter last year.
- The company maintains a strong cash position with $647 million in cash, cash equivalents, and investments, plus an additional $600 million available through a revolving credit facility.
- Sarepta Therapeutics Inc (SRPT) has four approved therapies generating significant revenue and growth potential.
- The company is actively working to expand its site capacity and improve administrative processes to enhance patient access to ELEVIDYS.
Negative Points
- Sarepta Therapeutics Inc (SRPT) revised its net product revenue guidance for 2025 to $2.3 billion to $2.6 billion, down from previous expectations.
- A tragic safety event involving a patient death due to acute liver failure has impacted the company's reputation and caused delays in patient infusions.
- The administrative process for gene therapy infusions is complex, leading to delays and impacting revenue timing.
- There is an imbalance in site capacity, with top sites being fully booked, which limits immediate patient access.
- The company faces challenges in educating the broader physician and patient community about the safety and efficacy of ELEVIDYS, impacting uptake.
