Citi Gives Sarepta Therapeutics Buy Rating, Favors Risk/Reward for DMD Drug Approval
December 14, 2023
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Sarepta Therapeutics ($NASDAQ:SRPT) is a biopharmaceutical company dedicated to the discovery and development of precision genetic medicines to treat rare neuromuscular diseases. The company has recently received a “Buy” rating from Citi, citing the attractive risk/reward associated with the potential approval of its DMD drug. Citi has identified this potential approval as an opportunity for investors, noting the risk/reward associated with the potential approval of this drug.
Share Price
This positive outlook has led to an increase in SRPT’s stock price, with the stock opening at $87.0 and closing at $92.1, which is a 6.1% increase from the prior closing price of $86.8. Citi is optimistic on SRPT’s prospects due to its experimental drug designed to treat Duchenne muscular dystrophy (DMD). The DMD drug has been granted Breakthrough Therapy designation by the FDA, and Citi believes that the risk/reward associated with its approval could be favorable for SRPT investors. Citi also noted that SRPT could be undervalued, given the potential of its pipeline and the progress made with its DMD drug. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Sarepta Therapeutics. More…
| Total Revenues | Net Income | Net Margin |
| 1.1k | -690.88 | -32.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Sarepta Therapeutics. More…
| Operations | Investing | Financing |
| -538.73 | -91.65 | 133.81 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Sarepta Therapeutics. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.11k | 2.35k | 8.17 |
Key Ratios Snapshot
Some of the financial key ratios for Sarepta Therapeutics are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 30.7% | – | -57.8% |
| FCF Margin | ROE | ROA |
| -55.5% | -53.0% | -12.8% |
Analysis
GoodWhale’s analysis of SAREPTA THERAPEUTICS‘s financials reveals a low health score of 3/10, indicating that the company is less likely to pay off debt and fund future operations. In terms of different metrics, SAREPTA THERAPEUTICS demonstrates strong growth, medium asset strength, weak dividend power, and low profitability. GoodWhale classifies SAREPTA THERAPEUTICS as a “cheetah” – a type of company that has achieved high revenue or earnings growth but is considered less stable due to its lower profitability. Investors interested in such a company could be those who are looking for high growth potential and are willing to take on higher risk in return. More…
Peers
The company is headquartered in Cambridge, Massachusetts and was founded in 1980. Sarepta Therapeutics Inc has four main competitors: Genor Biopharma Holdings Ltd, Impel Pharmaceuticals Inc, Entera Bio Ltd, and PTC Therapeutics Inc. These companies are all focused on the development of treatments for DMD and other rare diseases.
– Genor Biopharma Holdings Ltd ($SEHK:06998)
Genor Biopharma Holdings Ltd is a pharmaceutical company that focuses on the development and commercialization of innovative drugs for the treatment of cancer. The company has a market cap of 949.11M as of 2022 and a ROE of -23.99%. The company’s products are designed to target specific genetic mutations that are known to drive the growth and progression of cancer.
– Impel Pharmaceuticals Inc ($NASDAQ:IMPL)
Impel Pharmaceuticals Inc is a pharmaceutical company with a market cap of 94.72M as of 2022. The company has a Return on Equity of -359.89%. Impel Pharmaceuticals Inc is a company that focuses on the development and commercialization of drugs for the treatment of central nervous system disorders.
– Entera Bio Ltd ($NASDAQ:ENTX)
Entera Bio Ltd is a clinical-stage biopharmaceutical company focused on the development and commercialization of oral therapeutics for serious unmet medical needs. The company’s lead product candidate is EB614, an oral biologic that is in clinical development for the treatment of osteoporosis, inflammatory bowel disease, and other immune-mediated diseases. Entera Bio Ltd has a market cap of 24.06M as of 2022, a Return on Equity of -48.6%. The company’s focus on the development and commercialization of oral therapeutics makes it a unique player in the biopharmaceutical market. However, its negative ROE indicates that it is not a profitable company at this time.
Summary
Citi recently issued a ‘buy’ rating on Sarepta Therapeutics, citing the attractive risk/reward of the company’s Duchenne Muscular Dystrophy (DMD) drug approval prospects. The stock price responded positively to this announcement, indicating investor confidence in the company’s potential. Citi noted that Sarepta has a robust pipeline of potential drugs and treatments, and that its current products have shown strong performance.
This makes the company an attractive investment opportunity for those seeking long-term returns. With a comprehensive set of criteria for evaluating potential investments, Citi believes Sarepta Therapeutics is primed for success in the near future.
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