On Wednesday, July 19, Sarepta Therapeutics Inc. (NASDAQ:$SRPT) brought in revenues that were much higher than expected in its Q2 earnings report. As a result, the stock increased by more than 20%.
According to Wall Street, Sarepta’s focus on creating treatments for rare neuromuscular diseases is paying off. In fact, Wall Street believes that this has put Sarepta in position to dominate its sector of the commercial drug market.
“We believe Sarepta is on track to become a [Duchenne Muscular Dystrophy]- focused powerhouse,” an analyst for SunTrust wrote.
The biopharmaceutical company disclosed quarterly revenue of $35 million. Sarepta’s main product, Exondys 51, “continues to demonstrate strong momentum” in the United States market, SunTrust said. Additionally, it is on the verge of entering into the European Union market.
Now that the patent dispute between Sarepta and BioMarin (NASDAQ:$BMRN) is (finally) coming to an end, and a new licensing agreement calls for Sarepta to pay out $35 million for the rights to develop more DMD drugs, Sarepta expects to “report modest EU sales” in Q4 of this year.
In addition, a strong balance sheet is giving Sarepta an increase, as the company ended this past quarter with $301.7 million in total cash. According to SunTrust, a new $100 million debt-financing agreement can provide the biopharma company with low-cost capital that it can use to capitalize upon the FDA’s approval of Exondys 51.
Featured Image: twitter
