Is Sarepta Therapeutics Stock a Bad-News Buy?
Investing in biotech stocks is risky. And one of the more volatile ones of late is Sarepta Therapeutics (NASDAQ: SRPT). Shares of the company crashed last week after it released results from phase 3 trials, which failed to impress investors and analysts. Is the company in big trouble, or is this latest setback simply a good opportunity for long-term investors to buy the stock at a reduced price?
For biotech investors, the results of a clinical trial can often be more important for a stock than its actual earnings numbers. Trials help determine a drug's safety profile and how effective it is in doing what it is designed to do. A primary endpoint is the main goal for a trial, and if that isn't met, that can be a sign it is not effective.
That's what happened last week to Sarepta. On Oct. 30, the company reported results from a phase 3 study of its gene therapy, Elevidys, a treatment for Duchenne muscular dystrophy (DMD). In June, the Food and Drug Administration (FDA) granted accelerated approval for the treatment, but it was for a narrower group -- children between the ages of 4 and 5 -- than what the company intended. Sarepta was hoping the approval would cover children up to the age of 7.
Source Fool.com
Sarepta Therapeutics Stock
The community is currently still undecided about Sarepta Therapeutics with 1 Buy predictions and 0 Sell predictions.
With a target price of 130 € there is a slightly positive potential of 8.02% for Sarepta Therapeutics compared to the current price of 120.35 €.
