Piper ‘very bullish’ on Sarepta ahead of limb-girdle muscular dystrophy data

Piper Jaffray analyst Danielle Brill says she remains “very bullish” ahead of the company’s limb-girdle muscular dystrophy data. The analyst reiterates an Overweight rating on the shares with a $200 price target. . Unlike Duchenne muscular dystrophy, in LGMD the vector delivers the native hSGCB gene, meaning accelerated approval based on expression levels alone seems plausible, Brill tells investors in a research note, citing Sarepta management and her firm’s DMD expert. A safety finding in the data is the most unlikely outcome, the analyst says. She believes the stock would drop around 50% in this situation. Brill believes a more plausible outcome is hSGCB expression levels less than 20% but clean safety. She thinks Sarepta shares would drop around 10% in this scenario. The analyst, however, is most confident in a scenario where hSGCB expression is greater than 20% and safety is clean. She sees 10%-20% upside for the stock in this case.

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