Sarepta Therapeutics Inc (NASDAQ:SRPT)
Sarepta Therapeutics, Inc. (SRPT), a biopharmaceutical company yesterday reported their fourth quarter and full year 2016 financial results. Sarepta reported fourth quarter adjusted earnings of a loss of $1.58 per share which fell short of analyst expectations of a loss of $1.26 per share. Sarepta reported fourth quarter revenues of $5.4 million which beat analyst expectations of $5 million.
Sarepta Therapeutics, Inc. CEO’s Comments
2016 was a transformative year, with the FDA accelerated approval of EXONDYS 51. In 2017, we are focused on our strategy to build shareholder value by executing a successful launch of EXONDYS 51 in the US, reaching more patients through global expansion, and rapidly advancing our pipeline through internal and external development efforts,” said Edward Kaye, Sarepta’s chief executive officer. “We are pleased with the interest from the patient and physician community for EXONDYS 51, and with the progress we have made in discussions with payers. We believe this positions us well for potential growth and towards our goal at Sarepta Therapeutics to help all boys with Duchenne muscular dystrophy. Business Wire
SRPT Technical Analysis
SRPT opened trading yesterday at $32.99 which was up from the previous day’s trading close of $32.71. Shares closed trading yesterday at $31.11 and spiked down after market to $26.66, equivalent to a 14% decrease from the closing price. Taking a look at the daily chart we can see that the last time SRPT traded below these levels we have to go all the way back to September 13th, 2016 when it traded at $25.60.
Taking a closer look at the daily chart we can see that before the spike down SRPT had already been in an overall downward trend dating back to October 5th, 2016 when it traded at $62.35. SRPT has a float of 48.2 million shares and traded 1.19 times the normal daily trading volume on Tuesday.
For trading purposes, I would like to see SRPT open trading on Wednesday below $28.15 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.30 from my entry position fearing anything more than that and the stock would start to fill in the gap down.
Company Profile
Sarepta Therapeutics, Inc., a biopharmaceutical company, focuses on the discovery and development of RNA-based therapeutics for the treatment of rare, infectious, and other diseases.
The company’s lead product candidate is Eteplirsen, an antisense phosphorodiamidate morpholino oligomer therapeutic, which is in Phase III clinical development for the treatment of individuals with Duchenne muscular dystrophy (DMD), a genetic muscle-wasting disease caused by the absence of dystrophin.
It is also developing exon-skipping drugs for the treatment of DMD; and therapeutic candidates for the treatment of infectious diseases, such as influenza, Marburg, and Ebola.
The company has a strategic alliance with Charley’s Fund, Inc. to support the development of product candidates using its proprietary exon-skipping technologies; a license agreement with the University of Western Australia for the use of antisense sequences in the treatment of DMD; and a research collaboration agreement with Catabasis Pharmaceuticals, Inc to explore a combination drug treatment approach for DMD.
It also has a research and option agreement with Nationwide Children’s Hospital for microdystrophin gene therapy program. Sarepta Therapeutics, Inc. was founded in 1980 and is headquartered in Cambridge, Massachusetts.