Pfizer Inc. (NYSE:PFE) has dosed its first patient in a Phase 1 trial for its Duchenne muscular dystrophy drug PF-06939926. The asset was acquired during Pfizer’s takeover of Bamboo Therapeutics two years ago, and it is now entering the clinic.
The drug, if successful, could cause big long-term problems for Sarepta Therapeutics (NASDAQ:SRPT), which keeps reaching new all-time highs on the hopes that its own DMD drug Exondys 51 (eteplirsen) will start selling well and make the company profitable.
SRPT data by YChartsGuidance is for about $300M in sales in 2018, which should put Sarepta in the black and at least start to justify its valuation. The other good news for Sarepta is that since Pfizer’s drug is still in Phase 1, it is not a direct short-term threat. However, it could expose structural weaknesses in Sarepta’s business.
