Sarepta Therapeutics Inc SRPT 6.18% has taken quite a disappointing round-trip for shareholders since the stock jumped from $27.99 to $63.73 in a matter of days back in September.
On September 19, the FDA granted accelerated approval for Sarepta’s Exondys 51, which became the first drug ever approved for the treatment of Duchenne muscular dystrophy.
However, after more than doubling to a new all-time high within days of the news, investors started to realize that expectations for the impact the drug might have gotten way too highout of hand. A significant number of regional managed care organizations have either denied or limited their coverage of Exondys 51 since the FDA approval.
Leerink analyst Joseph Schwartz also has concerns about the drug’s pricing. He predicts the average price of Exondys 51 will be in the $300,000 range and government programs Medicaid and 340B will only discount the price by 23.1percent.
At the same time, consensus Wall Street expectations for Sarepta’s 2017 full-year revenue stand at $215 million. For the company to meet those expectations, Exondys 51 will need to reach 19 percent market penetration by the end of next year.
Goldman Sachs recently said…
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