Jefferies cuts Sarepta target on slower than expected launch
Jefferies analyst Gena Wang cut her price target for Sarepta Therapeutics to $32 from $46 after her due diligence revealed stronger payer pushback and a slower launch for Exondys 51, the company's' recently approved treatment of Duchenne muscular dystrophy. After speaking with four private payers, three Medicaid experts and "several" Duchenne muscular dystrophy experts with "first-hand experience" of Exondys 51, Wang believes the majority of patients being under Medicaid as well as restrictive payer policies could further slow the launch of Exondys 51 in the near term. Based on available data, three of five national and eight of 15 regional managed care organizations have denied or restricted coverage for Exondys 51, the analyst tells investors in a research note. Wang keeps a Hold rating on Sarepta shares.