BMO Capital Markets raised Sarepta Therapeutics to Outperform, on strong uptake of its Duchenne muscular dystrophy therapy Elevidys and potential upside from early-stage pipeline readouts.
The brokerage kept its $50 price target.
“Although we appreciate investors’ credible concerns around a potential ambulatory patient death that could compromise Elevidys viability (sending SRPT to ~$12-15), SRPT’s current valuation renders its risk/reward skewed to the upside,” the analysts wrote.
BMO said its analysis of FDA Adverse Event Reporting System (FAERS) data indicates Elevidys sales in the U.S. could reach $155–165 million in 3Q25, more than 60% above the Street’s $93 million consensus.
A physician survey of 30 doctors also points to continued adoption. “~90% of physicians continue to prescribe Elevidys post patient-deaths (1/3 physicians prescribing with similar pace as pre-deaths),” the analysts noted, adding that headline risk from additional non-ambulatory patient deaths has eased after more than 90 days passed since dosing was paused in that group.
Beyond Elevidys, BMO highlighted year-end readouts from Sarepta’s programs in myotonic dystrophy type 1 (DM1) and facioscapulohumeral muscular dystrophy (FSHD) as potential investor draws.
“A competitive readout in 2H (clean safety w/o anemia, robust KD/functional benefit, infrequent/subQ dosing) could render SRPT a key player in these multibillion dollar indications,” the analysts said.
Still, the biggest risk remains. “The biggest SRPT risk remains the potential death of an ambulatory Elevidys patient that would trigger concerns about Elevidys market removal,” BMO cautioned.
However, the firm argued that “enhanced monitoring and higher muscle presence in ambulatory vs. non-ambulatory patients reduces the risk,” and even if such a death occurs, “FDA would likely not pull Elevidys from the market due to high unmet need, while physicians would still continue prescribing it.”
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