Sarepta Therapeutics Inc. (SRPT) Surges 177% on Study ResultsVW Staff
Sarepta Therapeutics Inc. (NASDAQ:SRPT), a Washington-based biotechnology company, is up 177%, following its study announcement. The pharma company announced plans to discuss the 48 week data for its Eteplirsen Phase II study, which is likely to highlight the 6-minute walk test results. Think Equity LLC research analysts believe that, positive results from the announcement would be critical inflection, as they expect an end of the Phase II meeting with the FDA between December and January, seeking clarification on regulatory pathways.
The pharmaceuticals companies operate in a tricky industry; that on several occasions has proved to be unpredictable Indeed in one of our earlier articles, we did point out that it is like gambling, as only FDA gets to make the final decision. Sarepta Therapeutics will be in a similar position, at a period estimated to be between December 2012, and January 2013.
Today, Sarepta Therapeutics Inc. (NASDAQ:SRPT), stock surged to more than twice the previous price, obviously, due to the optimism inherent in a massive number of investors over the prospects of the Eteplirsen treatment. However, the FDA, could yet fault the strong believers, if it objects to the treatment.
Nonetheless, the research analysts from Think Equity, are very positive on the outcome, and anticipate presentation of data for Eteplirsen from the Phase I/II study, including additional endpoint data at the International World Muscle Society Congress (Oct. 9-13), in Perth Australia.
Notwithstanding, references should be made to recent events, that have seen other pharma companies dive into a slump, following various predicaments at some point in the product study. For instance, in one of our articles, we did highlight the case of Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX), which dropped one Hepatitis medicine, the 2158’s antiviral activity fizzled in the early stages of study; in favor of a second, the 2200.
In another case, Peregrine Pharmaceuticals (NASDAQ:PPHM), experienced some serious discrepancies in trial data, subjecting its stock to a plunge, Questcor Pharmaceuticals, Inc. (NASDAQ:QCOR), is also facing a myriad of challenges, following an FDA probe that shattered investor confidence.
The industry remains highly attractive, yet increasingly risky. Investing in unproven pharma stocks, seems to be an exciting gambling game. The research analysts have a price target of $15 on Sarepta Therapeutics Inc. (NASDAQ:SRPT), but this is pretty low compared to the current price of $40.62, up $25.63, or 170% rise, from yesterday’s close.