Will Sarepta Be Bought Out in 2013?

Many investors remember that legendary day in September when shares of then little-known biotech Sarepta (NASDAQ: SRPT  ) climbed almost 200% in a single day. The promise behind the company's Duchenne muscular dystrophy drug eteplirsen has generated massive interest in the stock and might have some investors thinking that this is a prime buyout target for big pharma players searching for lucrative drugs.

But wait -- is Sarepta actually looking for an acquirer?

In this video, health care analyst Max Macaluso weighs in on the debate and gives his opinion on whether this fledgling biotech will be acquired.

What's inside Supernova?
If you're an investor looking for big long-term winners, Motley Fool co-founder David Gardner's picks have frequently trounced the market. How? Because he's always on the lookout for revolutionary stocks and recommends them before Wall Street catches on to their disruptive potential. If you're interested in how David discovers his winners, click here to get instant access to a personal tour behind David's Supernova service.


Read/Post Comments (2) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On January 12, 2013, at 10:20 AM, MEDS4HEALTH wrote:

    Kimberly Lee, an analyst at Janney Montgomery Scott LLC says Sarepata probably won’t receive accelerated approval based on current results in so few patients and likely will be required to run a larger, pivotal study. I would like to present an alternative view. Sarepata is seeking results in a new area of drug therapy which is RNA based Orphan drugs used to treat rare diseases presently are DNA based.

    Several drugs on the market today such as Cerezyme for treatment of Gaucher’s disease, Fabrazyme for Fabry disease and Myozyme for Pompes disease come to mind. These drugs were given FDA approval based on very similar study groups to Sarepata’s eteplirsen.

    Eteplirsen has been proven to have little side effects in all patent’s receiving the medication. The positive results far out weigh the chances of adverse effects since Duchenne disease is fatal in most cases by 25 to 30 years of age. All of the above medications have side effects and often times present adverse effects that must be reported to the FDA. Myozyme even has a black box FDA warning to health care professionals.

    It is clear that Kimberly Lee has not sat with a child with one of these diseases and seen the terror in the eyes of a mother or father hoping for something positive to happen to save their child from a dreaded disease. Parents, physicians, pharmacists and nurses are joining advocacy groups to petition their congressional representatives to ask the FDA to fast tract eteplirsen. In the coming weeks and months, the pressure will build to approve the drug and than increase the sample size. At least more children can be treated while compiling more data. Also funds can be provided to Sarepata to implement full scale production.

    Let us depend on our financial analyst to recommend or not recommend stocks based on solid financial statements. In this case, let us look to medical research personal to look at medical data to conclude what the FDA may do or not do.

    I am long the stock

  • Report this Comment On January 16, 2013, at 11:50 AM, NoPanicBill wrote:

    Talking heads do not belong in predicting FDA potential approvals. This type of commentary should come from qualified ex-FDA members or medical professionals. I don't need a potential weatherman or sports announcer to give me advice, because they are wrong most of the time. That is what you have here, an unqualified person reading from a script written by someone else. There is a proven potential for FDA approval for this medication to be fast tracked with a ongoing study to be performed concurrently with dispensation. That statement is a real fact. If the FDA does announce a fast track decision the possibility of a buyout at that time will increase expotentialy as most big pharm will make their move then. That can be proven by using past history of M&A's. I stand by my own DD and use quality information from outside sources. What was provided here was not.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2186938, ~/Articles/ArticleHandler.aspx, 9/18/2014 8:15:30 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 17,265.99 109.14 0.64%
S&P 500 2,011.36 9.79 0.49%
NASD 4,593.43 31.24 0.68%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/18/2014 4:00 PM
SRPT $22.53 Down -0.41 -1.79%
Sarepta Therapeuti… CAPS Rating: ***
ALXN $161.56 Up +0.03 +0.02%
Alexion Pharmaceut… CAPS Rating: **
CELG $93.27 Up +1.01 +1.09%
Celgene CAPS Rating: *****
GILD $105.93 Up +2.09 +2.01%
Gilead Sciences CAPS Rating: ****
GSK $47.29 Up +0.19 +0.40%
GlaxoSmithKline CAPS Rating: ****
SNY $56.98 Up +0.46 +0.81%
Sanofi (ADR) CAPS Rating: *****

Advertisement