Sarepta Therapeutics Inc (NASDAQ: SRPT)
Sarepta Therapeutics is having an incredible day in the market today, and for good reason. It was announced early this morning that the company has received a key approval from the FDA. Today, we’ll talk about the approval, what we’re seeing from the stock in the market, and what we can expect to see from SRPT moving forward. So, let’s get right to it…
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SRPT Gains On Eteplirsen Approval
As mentioned above, Sarepta Therapeutics is having an incredible day in the market today after announcing that a key drug candidate has been approved by the FDA. Early this morning, the company announced that Eteplirsen has been approved for the treatment of patients with Duchenne muscular dystrophy.
This is incredibly big news because Eteplirsen marks the first drug that has been approved to treat patients with Duchenne muscular dystrophy. The treatment has been specifically indicated by SRPT as a treatment for patients who have a confirmed mutation of the dystrophin gene amenable to exon 51 skipping. This is seen in about 13% of patients who suffer with Duchenne muscular dystrophy. In a statement, Janet Woodcock, M.D., Director of the FDA’s Center for Drug Evaluation and Research, had the following to say about the treatment:
“Patients with a particular type of Duchenne muscular dystrophy will now have access to an approved treatment for this rare and devastating disease…. In rare diseases, new drug development is especially challenging due to the small numbers of people affected by each disease and the lack of medical understanding of many disorders. Accelerated approval makes this drug available to patients based on initial data, but we eagerly await learning more about the efficacy of this drug through a confirmatory clinical trial that the company must conduct for after approval.”
What We’re Seeing In The Market
As investors, one of the first things that we learn is that it’s important to watch the news. After all, the news moves the market. Any time positive news is released with regard to a publicly-traded company, we can expect to see gains in the value of the stock that is representative of the company. Adversely, negative news will generally lead to declines. In this particular case, the news that was released with regard to SRPT was overwhelmingly positive. After all, a treatment that the company has invested massive amounts of time and money into has been approved. As a result, we’re seeing strong gains in the value of the stock today. Currently (12:11), the stock is trading at $52.68 per share after a gain of $24.52 per share (87.12%) thus far today.
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What We Can Expect To See Moving Forward
Moving forward, I have an overwhelmingly bullish expectation of what we can expect to see from Sarepta Therapeutics. At the end of the day, the company now has an approved treatment for Duchenne muscular dystropy under its belt. Now, we’re still awaiting the confirmatory study for full approval, but, all in all, the treatment has made it into accelerated approval. This is incredible news, as SRPT is the first company to achieve approval for a treatment of this debilitating condition. While the condition is rare, there’s plenty of room for profits involved in treating it. So, not only will the company improve the lives of patients, but they’ll make a profit doing it. All in all, I’m expecting to see gains from SRPT ahead.
[Image Courtesy of Wikipedia]