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inventory is falling after the biotech firm stated it could promote extra inventory and offered an replace on product income.
Sarepta stated that it could publish third-quarter gross sales of $166.9 million. That revelation got here as the corporate stated it could promote $500 million in inventory, revealing that it had $1.6 billion in money available on Sept. 30, down from $1.9 billion on Dec. 31, 2020. Sarepta inventory gained 4.1% in common buying and selling hours Tuesday.
The announcement got here in the future after Sarepta inventory dropped 8.2% after reporting knowledge on three gene remedy trials for Duchenne muscular dystrophy, the uncommon illness that the corporate has been attempting to deal with. “We discover up to date useful outcomes throughout all SRP-9001 medical research spectacular,” Needham analyst Gil Blum wrote, even when the market didn’t. Now this.
Sarepta inventory was a darling of Wall Avenue in 2018, when the corporate first launched optimistic knowledge on its gene remedy for Duchenne Muscle Dystrophy. Its shares, nevertheless, have fallen on onerous instances this yr—its inventory is down 44% in 2021—after the corporate launched disappointing knowledge in January.
Analysts had been sticking with its shares following Monday’s knowledge launch. Two-thirds nonetheless price the inventory the equal of a Purchase, with the opposite third score it the equal of a Maintain. None price it a Promote.
There’s nonetheless hope. In a word launched Monday, BTIG analyst Yun Zhong blamed the unfavourable response to this week’s knowledge on “increased than affordable expectation” and a few latest energy within the inventory. He was heartened, nevertheless, by the info itself. One examine confirmed enchancment in sufferers that “ought to be coming into the declining stage” of the illness, whereas one other ought to produce “higher knowledge” because of the excessive requirements required for enrolling within the examine. “We imagine Sarepta is now in a stronger place within the race towards the primary FDA approval for a micro-dystrophin gene remedy,” Zhong writes.
Rely on the inventory remaining risky till it does.
Correction & Amplification
Sarepta offered product income steerage of $166.9 million. An earlier model stated it was complete income.
Write to Ben Levisohn at email@example.com