Sarepta Therapeutics Inc. (NASDAQ: SRPT) plunged early on Friday, but this is not on news that it has done anything wrong or failed any clinical trials. Sarepta is dropping as the result of a failed clinical trial by BioMarin Pharmaceutical Inc. (NASDAQ: BMRN).
On Thursday, the U.S. Food and Drug Administration (FDA) turned down a New Drug Application (NDA) for BioMarin’s treatment of Duchenne muscular dystrophy (DMD). But how does this impact Sarepta?
Sarepta is developing its own treatment for DMD, a drug called eteplirsen, which will face an FDA review on Friday January 22. The FDA will give its decision by February 26.
What we’re seeing here is investors getting spooked by a failed study within one major biotech, and thinking this could very well happen to the other. However, the fallout from this failed study within Sarepta is much more crippling than in BioMarin.
DMD affects approximately one in every 3,500 to 5,000 male children, making it the most common fatal genetic disorder diagnosed in childhood. There is currently no FDA-approved therapy designed specifically to treat DMD.
[ims_survey]
Sarepta’s stock was already suffering, down 18% year to date to Thursday’s close, underperforming the broad markets. However, over the past 52 weeks the stock was an absolute winner, up nearly 160%.
Shares of Sarepta were down 57% to $13.60 Friday morning, with a consensus analyst price target of $46.75 and a 52-week trading range of $11.42 to $41.97.
BioMarin shares were down just 1% to $83.50, within a 52-week trading range of $77.59 to $151.75. The consensus price target is $137.94.
Take Charge of Your Retirement In Just A Few Minutes (Sponsor)
Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s made it easier than ever for you to connect with a vetted financial advisor.
Here’s how it works:
- Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
- Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
- Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.
Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.