Sarepta Therapeutics Inc (NASDAQ: SRPT)
Sarepta Therapeutics is having an incredible day in the market today. After announcing news from the FDA, the stock has been soaring dramatically throughout most of the day. Today, we’ll talk about the news that was released, how the market reacted to the news, and what we can expect to see from SRPT moving forward.
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SRPT Receives A Response From The FDA
Sarepta Therapeutics and its investors have been waiting on news from the FDA with regard to etiplirsen. Earlier in the year, it didn’t seem as though the drug would make it to approval. However, while approval has still not been offered, the FDA has requested more data, which could be a promising sign. The regulatory agency has requested that the company provide dystrophin data. The data will come from biopsies already obtained from the ongoing confirmatory study and will be measured by western blog.
While most would take a request for more data as a bad thing, Sarepta Therapeutics investors are incredibly happy. The company was ready for the request and has already said that it will be honoring the request soon. In fact, SRPT announced that it will be submitting the data from its 13 patient biobsy samples to the FDA over the coming weeks, in order to help the FDA move forward with a prompt decision with regard to the treatment.
How The Market Reacted To The News
One of the first things that we learn as investors is that the news causes the market to move. When big news is released with regard to a publicly-traded company, we can expect to see strong movement in one way or another. Of course, positive news will cause positive moves and negative news causes negative moves.
In the case of SRPT, the news that was released earlier today is overwhelmingly positive. Investors were already bracing for the FDA’s decision to decline eteplirsen. However, now it looks like the treatment may have a strong chance of approval. As a result, we’re seeing strong movement surrounding the stock in the market today. Currently (12:38), SRPT is trading at $19.69 per share after a gain of $3.64 per share, or 22.68%, thus far today.
What We Can Expect To See Moving Forward
Moving forward, I have a relatively mixed opinion with what we can expect to see from Sarepta Therapeutics. The bad news is that the company is struggling to gain approval for eteplirsen, and, really, I’m not sure the FDA is going to make a positive decision here. On the other hand, I am excited about the fact that the FDA has requested more data. This request insinuates that there’s still a good possibility of approval.
At the end of the day, we will know whether or not etiplirsen will be approved relatively soon. If the treatment is approved, we can expect to see strong gains in the value of SRPT. However, if a decline does happen, the stock is likely to move in the downward direction. So, keep your eyes peeled for any developments in the story to come.
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What Do You Think?
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