Sarepta Therapeutics Inc (NASDAQ: SRPT) is having a pretty rough day in the market today. However, there hasn’t been any news released. Nonetheless, we believe that the declines represent a strong opportunity. Today, we’ll talk about:
- Why this may be a great time to get in on SRPT;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Why Now Is A Good Time To Consider SRPT
As mentioned above, Sarepta Therapeutics isn’t having a very good day in the market today. The stock is falling, but there’s really no reasonable cause for the declines. Ultimately, it seems as though the fall is caused by nothing more than traders trading. Nonetheless, the declines do represent a strong potential opportunity.
For those of you that haven’t been following SRPT, the company is focused heavily on the treatment of Duchenne Muscular Dystrophy. While many consider the company a clinical stage company, it’s actually a commercial stage one as it has a product that is commercially available under accelerated approval by the FDA.
The product, EXONDYS 51 is indicated for the treatment of Duchenne muscular dystrophy in patients with a confirmed mutation of the DMD gene that is amenable to exon 51. However, as the indication is approved under accelerated approval, the company must state that clinical benefit has not been established and further clinical data will be needed for the continued approval of the treatment. Nonetheless, the data to date has been promising.
Aside from EXONDYS 51, the company has a long list of clinical and pre-clinical candidates for the treatment of DMD, and this work has proven to be meaningful. The truth of the matter is that no other company has come remotely close to SRPT in terms of the treatment of DMD. As a result, the company has carved a niche and cemented itself as a leader. In the biotechnology space, this kind of language screams one word… ACQUISITION!
Biotech is a space where acquisitions are common, and DMD is a high value indication. Should the company’s treatments prove to be effective in the treatment of the condition, the value here could be tremendous. This is where things get interesting.
With Sarepta Therapeutics currently having an accelerated approval and several other candidates making progress in the development process, the company is a prime candidate for a takeover. After all, if an interested party waits too long, long-term approval and strong data from the pipeline could increase any acquisition price. At the end of the day, SRPT is a strong takeover target and the best time to act for an interested party would be in the relatively near term.
Should a takeover not happen, the company still has its assets, and they are very high value assets. As mentioned above, DMD could be an incredibly high value market and SRPT is the company that is leading the charge with regard to the treatment of the condition. Considering this, even if an acquisition didn’t happen, the potential for growth here as the company becomes the leader in the treatment of DMD is incredible.
What We’re Seeing From The Stock
While there has been no news, Sarepta Therapeutics isn’t having a very good day in the market today. In fact, the stock is down in a big way. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (1:07), SRPT is trading at $105.10 per share after a loss of $10.33 per share ro 8.95% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the iWatch Markets team will continue to keep a close eye on SRPT. In particular, we’re interested in following the story surrounding the company’s continued work to bring various treatment options to the DMD community. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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