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Sarepta Therapeutics shares rally, Mizuho says confidence in label expansion 'remains unwavering'

Published 10/01/2024, 01:26 am
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Sarepta Therapeutics (NASDAQ:SRPT) shares jumped Tuesday, adding to its previous session gain after the company reported preliminary Q4 and full-year net product revenue.

The biotechnology company said on Monday that its preliminary full-year 2023 total net product revenue is expected to total $1.145 billion.

In addition, preliminary ELEVIDYS net product revenue is expected to be $131.3 million for the fourth quarter and $200.4 million for full-year 2023, "significantly exceeding consensus."

Meanwhile, preliminary RNA-based PMO net product revenue for Q4 and the full year of 2023 is expected to total $234.3 million and $945.0 million, respectively, exceeding the company's 2023 full-year guidance of $925 million.

SRPT shares are up more than 8% at the time of writing on Tuesday. On Monday, it climbed over 5%.

Reacting to the company's update, analysts at Mizuho said Elevidys drove the strong 4Q23 top line while the "confidence in label expansion remains unwavering."

"Sarepta pre-announced better-than-expected 4Q23 product sales, driven primarily by very strong sales from Elevidys gene therapy for Duchenne muscular dystrophy (DMD), suggesting potential upside to 2024 Bloomberg consensus $717M," analysts wrote, maintaining a Buy rating and $130 price target on the stock.

"We continue to believe the odds are high for the label expansion for Elevidys and see potential upside to 2024 consensus sales forecast, especially if the FDA grants Elevidys label expansion," they added.

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