Sarepta Therapeutics Inc (SRPT) Is A Gamble Worth Taking

If GlaxoSmithKline is able to get its drug approved, then Sarepta will have to face stiff competition from the healthcare giant, which might result in less than impressive earnings. However, at the moment, Sarepta and GlaxoSmithKline plc (ADR) (NYSE:GSK) are the only players in this segment. GlaxoSmithKline’s results had one problem — the drug did not increase the strength of the muscles. On the other hand, Eteplirsen has a better safety and efficacy profile, which will give it an edge of over Drisapersen.

Conclusion

Sarepta Therapeutics Inc (NASDAQ:SRPT)’s shares have gone up substantially in the past two weeks due to the release of data from GlaxoSmithKline plc (ADR) (NYSE:GSK). However, the stock can also pull back if the company decides to start phase III clinical trials, instead of presenting the drug for early approval.

Sarepta Therapeutics Inc (NASDAQ:SRPT)’s stock has been trading higher due to the possibility of early approval. If the company decides for an early approval, the stock will go up substantially. However, if phase III trials are chosen, then Sarepta’s stock will lose substantial value in the short-term. But, if you are a long-term investor, then it should not bother you.

Ishtiaq Ahmed has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.