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Sarepta Therapeutics (SRPT)
NASDAQ:SRPT
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Sarepta Therapeutics
(NASDAQ:SRPT)
68Neutral
Positive Factors
Commercial Opportunity
The risk/benefit profile of Elevidys remains favorable representing an attractive commercial opportunity.
Company Expertise
Sarepta is uniquely positioned to leverage its DMD expertise, broad patient/payer/prescriber access, and market leadership to drive Elevidys revenue growth.
Market Valuation
Shares are viewed as grossly undervalued, especially when considering the sales that will be generated in future.
Negative Factors
Clinical Trials
The clinical hold on key ELEVIDYS trials in Europe is seen as heightening the uncertainty around the future of the franchise.
Patient Safety
Such severe side effects associated with mortality can certainly be alarming and cause the community to question the risk/benefit of treating older patients.
Regulatory Impact
The news about the clinical hold is anticipated to discourage use in US markets, especially in non-ambulatory patients.
Sarepta Therapeutics (SRPT) vs. S&P 500 (SPY)
Market Cap
$5.69B
Dividend YieldN/A
Average Volume (3M)2.21M
Price to Earnings (P/E)22.8
Beta (1Y)1.06
Revenue Growth52.97%
EPS GrowthN/A
CountryUS
Employees1,372
SectorHealthcare
Sector Strength76
IndustryBiotechnology
Share Statistics
EPS (TTM)2.38
Shares Outstanding97,032,074
10 Day Avg. Volume2,525,697
30 Day Avg. Volume2,208,735
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.78
Price to Cash Flow (P/CF)19.50
P/FCF Ratio21.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$159.76Price Target Upside193.51% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering20
Sarepta Therapeutics Business Overview & Revenue Model
Company DescriptionSarepta Therapeutics, Inc., a commercial-stage biopharmaceutical company, focuses on the discovery and development of RNA-targeted therapeutics, gene therapies, and other genetic therapeutic modalities for the treatment of rare diseases. It offers EXONDYS 51 injection to treat duchenne muscular dystrophy (duchenne) in patients with confirmed mutation of the dystrophin gene that is amenable to exon 51 skipping; and VYONDYS 53 for the treatment of duchenne in patients with confirmed mutation of the dystrophin gene that is amenable to exon 53 skipping. The company is also developing AMONDYS 45, a product candidate that uses phosphorodiamidate morpholino oligomer chemistry and exon-skipping technology to skip exon 45 of the dystrophin gene; SRP-5051, a peptide conjugated PMO that binds exon 51 of dystrophin pre-mRNA; SRP-9001, a DMD micro-dystrophin gene therapy program; and SRP-9003, a limb-girdle muscular dystrophies gene therapy program. It has collaboration agreements with F. Hoffman-La Roche Ltd; Nationwide Children's Hospital; Lysogene; Duke University; Genethon; and StrideBio. The company was incorporated in 1980 and is headquartered in Cambridge, Massachusetts.
How the Company Makes MoneySarepta Therapeutics generates revenue primarily through the sales of its approved therapies for Duchenne muscular dystrophy. The company has successfully commercialized three exon-skipping therapies—Exondys 51, Vyondys 53, and Amondys 45—each targeting specific mutations in the DMD gene, allowing for a tailored approach to treatment. Additionally, Sarepta engages in collaboration and licensing agreements with other pharmaceutical and biotechnology companies, which provide both upfront payments and potential milestone payments tied to developmental, regulatory, and sales achievements. These strategic partnerships enhance Sarepta's research capabilities and expand its pipeline of potential therapies, further contributing to its revenue streams.
Sarepta Therapeutics Financial Statement Overview
Summary
Sarepta Therapeutics shows strong growth in revenue and profitability, but faces challenges with high leverage and negative cash flow, despite improvements.Income Statement
Sarepta Therapeutics has demonstrated significant revenue growth over the years, with a notable increase from $380.8M in 2019 to $1.9B in 2024. The gross profit margin is strong, consistently at 100% in 2024, indicating effective cost management. The company turned profitable in 2024 with a net profit margin of 12.37%, a significant improvement from the previous losses. However, EBIT and EBITDA margins have fluctuated, with a positive 11.47% and 11.47% respectively in 2024, suggesting better operational efficiency recently.75
Positive
Balance Sheet
The balance sheet shows a high debt-to-equity ratio of 0.87 in 2024, indicating a moderate level of leverage. The return on equity has improved to 15.39% in 2024, reflecting effective use of equity to generate profits. Equity ratio stands at 38.55%, which is reasonable but suggests that a significant portion of assets is financed through debt.68
Positive
Cash Flow
While Sarepta Therapeutics has shown improvement in free cash flow, it remains negative in 2024 at -$342.7M, though improved from -$588.3M in 2023. The operating cash flow to net income ratio is negative, indicating challenges in converting income into cash. However, the recent reduction in net debt is a positive indicator of improving financial health.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.90B | 1.24B | 933.01M | 701.89M | 540.10M | Gross Profit |
| 1.58B | 1.09B | 793.02M | 604.84M | 476.72M | EBIT |
| 218.08M | -267.82M | -536.20M | -449.71M | -564.16M | EBITDA |
| 316.89M | -439.20M | -582.12M | -306.08M | -453.38M | Net Income Common Stockholders |
| 235.24M | -535.98M | -703.49M | -418.78M | -554.13M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.35B | 1.68B | 1.99B | 2.12B | 1.94B | Total Assets |
| 3.96B | 3.26B | 3.13B | 3.15B | 2.98B | Total Debt |
| 1.33B | 1.40B | 1.62B | 1.14B | 1.07B | Net Debt |
| 226.59M | 968.38M | 650.58M | -977.48M | -429.79M | Total Liabilities |
| 2.44B | 2.41B | 2.74B | 2.22B | 2.22B | Stockholders Equity |
| 1.53B | 859.34M | 384.95M | 928.01M | 761.76M |
| Cash Flow | Free Cash Flow | |||
| -342.74M | -588.34M | -356.17M | -481.66M | 25.26M | Operating Cash Flow |
| -205.79M | -500.99M | -325.35M | -443.17M | 107.47M | Investing Cash Flow |
| 755.56M | -165.80M | -1.05B | 495.41M | -121.72M | Financing Cash Flow |
| 124.81M | 125.00M | 232.51M | 561.57M | 682.32M |
Sarepta Therapeutics Technical Analysis
Negative
54.43
Price Trends
97.12
Negative
109.02
Negative
122.21
Negative
Market Momentum
-10.82
Positive
22.79
Positive
4.74
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SRPT, the sentiment is Negative. The current price of 54.43 is below the 20-day moving average (MA) of 78.22, below the 50-day MA of 97.12, and below the 200-day MA of 122.21, indicating a bearish trend. The MACD of -10.82 indicates Positive momentum. The RSI at 22.79 is Positive, neither overbought nor oversold. The STOCH value of 4.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SRPT.
Sarepta Therapeutics Risk Analysis
Sarepta Therapeutics disclosed 62 risk factors in its most recent earnings report. Sarepta Therapeutics reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sarepta Therapeutics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $5.22B | 13.79 | 27.90% | ― | -6.36% | 4.57% | |
68 Neutral | $5.69B | 22.84 | 19.71% | ― | 52.97% | ― | |
57 Neutral | $6.04B | ― | -15.45% | ― | 119.97% | 67.21% | |
52 Neutral | $5.22B | ― | -31.26% | ― | 104.04% | 87.80% | |
51 Neutral | $5.82B | ― | -29.33% | ― | -100.00% | 5.49% | |
51 Neutral | $5.26B | ― | -231.63% | ― | 42.53% | -15.29% | |
48 Neutral | $6.36B | 1.09 | -49.92% | 2.63% | 17.17% | 0.95% |
* Healthcare Sector Average
Performance Comparison
SRPT
Sarepta Therapeutics
54.43
-71.96
-56.93%
ALKS
Alkermes
30.06
4.13
15.93%
BPMC
Blueprint Medicines
81.68
-9.86
-10.77%
AXSM
Axsome Therapeutics
98.86
26.75
37.10%
RVMD
Revolution Medicines
31.32
-0.59
-1.85%
LEGN
Legend Biotech
32.01
-22.79
-41.59%
Sarepta Therapeutics Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -49.06% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The call reflects a highly positive performance with record-breaking revenue growth, successful ELEVIDYS launch, and strong guidance for 2025. Although there are challenges related to insurance and manufacturing, the overall outlook remains robust due to strategic advancements and pipeline progress.Highlights
Record-Breaking Revenue Growth
For the fourth quarter, net product revenue was $638 million, growing at 75% over the same quarter prior year. Full year net product revenue stood at $1.8 billion, representing year-over-year growth of 56%.
ELEVIDYS Gene Therapy Success
ELEVIDYS sales stood at $384 million in Q4, representing a 112% increase over the prior sequential quarter. Achieved over $1 billion in sales since initial approval, representing less than 5% of the on-label addressable opportunity.
Profitability and Cash Flow
Sarepta became sustainably profitable and cash flow positive in 2024.
Strong Guidance for 2025
2025 net product revenue guidance is between $2.9 billion and $3.1 billion, representing a year-over-year growth of 70%.
Pipeline Advancements
Significant progress with LGMD franchise, including potential approvals over the next three years. Closed the Arrowhead transaction, adding siRNA programs to the pipeline.
Lowlights
Insurance and Reimbursement Challenges
Despite progress, challenges remain in navigating payer policies for ELEVIDYS, requiring detailed logistics and time to achieve patient access.
Manufacturing Transition Required
Plan to transition to suspension manufacturing to improve COGS, indicating current manufacturing may not be optimal.
Company Guidance
During Sarepta Therapeutics' fourth quarter and full year 2024 financial results conference call, the company provided optimistic guidance for 2025, projecting net product revenue between $2.9 billion and $3.1 billion. This represents a 70% year-over-year growth, with ELEVIDYS expected to contribute over two-thirds of the revenue, reflecting a growth rate of over 160%. The call highlighted the success of ELEVIDYS, which achieved fourth-quarter sales of $384 million, marking a 112% increase over the previous sequential quarter, and surpassed $1 billion in sales since its initial approval in 2023. Sarepta also noted their expectation to achieve over $16 billion in cumulative operating income and over $13 billion in free cash flow by the end of 2030. The company is making strides in its LGMD franchise, anticipating three potential approvals in the next three years, and plans to transition to suspension manufacturing to improve cost of goods sold.Sarepta Therapeutics Corporate Events
Executive/Board ChangesPrivate Placements and FinancingBusiness Operations and Strategy
Sarepta Therapeutics Announces Leadership Change and Equity Deal
Neutral
Nov 26, 2024
Sarepta Therapeutics is undergoing a leadership change as Ryan Brown steps down, with Cristin Rothfuss set to succeed him. Concurrently, Sarepta is strengthening its financial position through a significant $325 million equity transaction with Arrowhead, purchasing over 11 million shares. This move includes lock-up and standstill provisions, limiting Sarepta’s trading and acquisition activities for specified periods, highlighting strategic stock management in the biotech sector.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.