Summary
- Unexpected gene therapy update was mostly reiterating what investors already knew.
- Biogen's buyback tossed some cold water on Sarepta buyout speculation.
- Selloff after $350 million public offering is nothing surprising and is positive for Sarepta in the long run.
- 20% + down from recent highs makes Sarepta a buy as the promising story has not changed a bit.
Sarepta Therapeutics Inc. (SRPT) has had a bearish month after a couple years of stellar price appreciation which could be a concern for investors wondering what's going on. First, Sarepta's most recent unexpected gene therapy update was nothing to write home about and included some fuzzy data while secondly, some analysts were quietly getting some M&A excitement brewing before Biogen Inc. (BIIB) tossed some cold water on the flames. Thirdly, Sarepta's public offering of stock might have been poorly timed for stockholders as near term catalysts are now fewer and farther between, but still a great idea for the company's long-term prospects. Lastly, Sarepta trading at 20%+ off of its recent highs make it a buy at this level as the story which has driven great price appreciation over the past two years is still fully intact.
First, Sarepta's unexpected gene therapy update came only a month after a key data release during the company's latest conference call where they went over a lot of the key data results already. However, Sarepta felt like updating investors on additional functional and CK data from the blinded studies and felt the need to dot the i's and cross the t's by hosting an additional conference call on the new data that had been released. It also might be concerning for some investors that some of the data looks fuzzy, like some of the variance in the CK data, even though all the averaged trends for the main data continue to look very promising for the company.
