Deal Positive for Sarepta (SRPT), Summit (SMMT) and DMD Community - Oppenheimer
Oppenheimer analyst Michelle Gilson reiterated an Outperform rating and $76 price target on Sarepta Therapeutic (NASDAQ: SRPT) after the company Sarepta and Summit (NASDAQ: SMMT) announced a licensing and collaboration agreement for EU rights to Summit's utrophin modulation programs for the treatment of Duchenne muscular dystrophy. Sarepta will pay Summit $40M upfront as part of the agreement, and will receive rights to Summit's utrophin modulators (including ezutromid and other follow-on utrophin modulators) in the EU, Turkey and the Commonwealth of Independent States. Additionally, Sarepta has received an option for Latin American rights to utrophin modulators.
"We view this agreement as positive for Sarepta and Summit, as well as the DMD community, as we believe significant synergies in research and development can be realized, mitigating some difficulties of clinical development in DMD," Gilson. "Sarepta has pro forma cash of $395M, following this agreement and 3Q16 offering."
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Shares of Sarepta Therapeutic closed at $60.95 yesterday.