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Fly News Breaks for December 23, 2019
RHHBY, SRPT
Dec 23, 2019 | 07:08 EDT
Cantor Fitzgerald analyst Alethia Young views Sarepta Therapeutics' (SRPT) $1.15B ex-U.S. licensing deal with Roche (RHHBY) for its micro-dystrophin Duchenne muscular dystrophy gene therapy SRP-9001 as a "big win" for the company. Following the recent unexpected Vyondys 53 approval, the deal adds "significant momentum" to Sarepta shares into 2020, Young tells investors in a research note. After speaking to management, the analyst believes Sarepta undertook a "very thoughtful, strategic, and competitive process" to secure the right partner with robust financial terms. The Roche pact should increase confidence in Sarepta's entire DMD gene therapy program, remove any financing overhang, and allow the company to retain control and flexibility going forward, says Young, who keeps an Overweight rating on the shares. Sarepta in premarket trading is up 14%, or $17.83, to $144.00.