Sarepta Plunges Again After Europe Rejects Elevidys

Perhaps analysts at HC Wainwright & Co. were right about their 12-month zero-dollar price target for Sarepta Therapeutics.

Following Sarepta’s withdrawal of its Duchenne muscular dystrophy gene therapy drug from U.S. markets earlier this week, it has now failed to secure approval from European regulators. The double blow has sent shares plunging (again) in premarket trading in New York.

The European Medicines Agency cited insufficient evidence of the gene therapy drug Elevidys to treat children aged 3 – 7 with Duchenne muscular dystrophy.

Via EMA…

Sarepta shares plunged as much as 18% in premarket trading. As of Thursday’s close, shares are down 89.5% on the year.

Roche Holding AG, which markets Elevidys in ex-US markets, has also paused shipments in jurisdictions that reference the FDA for approval. Shares of Roche were down 1% in Switzerland.

Elevidys’ safety profile has been under intense scrutiny since two teenagers and one adult died of acute liver failure after receiving the gene therapy.

Sarepta CEO Doug Ingram stated earlier this week, „The decision to voluntarily and temporarily pause shipments of ELEVIDYS was a painful one, as individuals with Duchenne are losing muscle daily and in need of disease-modifying options.”

On Monday, a team of HC Wainwright & Co. analysts led by Mitchell S. Kapoor made the rare move of slashing Sarepta’s price target to zero – from a prior target of $10 – while maintaining a sell rating.

According to the latest Bloomberg data, there are six sell ratings, 17 holds, and four buys on the stock. The average 12-month price target among Wall Street analysts is $20.27.

Related:

• Sarepta Crashes After Second Death On Gene Therapy Drug

• FDA To Halt Sarepta’s Gene Therapy Drug Shipments Over Deaths

• Sarepta Price Target Slashed To $0 At H.C. Wainwright As Stock Plunge Continues

• Sarepta Plunges Again After Children’s Hospital Los Angeles Halts Use Of Elevidys Gene Therapy

• „Painful Decision”: Sarepta Suspends All Elevidys Shipments Nationwide Amid Deaths

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