Sarepta Therapeutics (SRPT) Stock | Spikes Up On Positive Study

2020

Sarepta Therapeutics, Inc.  (NASDAQ: SRPT)

 

Sarepta Therapeutics, Inc. (SRPT), a biopharmaceutical company made an announcement on Wednesday regarding additional positive results regarding their Phase IIb program of Eteplirsen. Eteplirsen is used in the treatment of Duchenne muscular dystrophy.

 

Sarepta Therapeutics, Inc. CEO’s Comments

“We are encouraged by the positive clinical outcomes, such as the statistically significant difference in the 6MWT in eteplirsen-treated patients compared to a control, especially since we see them accompanied by data that continues to demonstrate exon skipping and dystrophin production in most patients,” said Edward Kaye, M.D., Sarepta’s interim chief executive officer and chief medical officer. “We are committed to bringing eteplirsen and our other investigational exon skipping therapies to patients with DMD and will continue to work with all stakeholders to advance these programs as quickly as possible so we can better address the unmet need for treatments in the DMD community.”  Business Wire

SRPT Technical Analysis

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SRPT gapped up in price yesterday to $36.18, up from the prior day’s close of $32.11 which is a 13% increase in price based on favorable news. Taking a look at the daily chart, we can see the last time the stock traded above this price level was on September 25th when the stock closed at $36.27. Taking a look at the recent trading history we can see the stock has been very volatile. On September 24th, the stock was trading at $38.88 only to reach lows of $31.15 three trading days later, equivalent to a 20% drop in price. The stock has a relatively low float of 35.23 million shares and has a short float of 29%. The stock is also trading on high volume, almost 5 times the normal daily trading volume. All these factors make the stock a good candidate for the gap and go strategy.  The stock did reach pre market highs of $38.45 meaning that it gave back $2.27 at the open equivalent to 6%. For trading purposes, my entry point would have been $36.45, which was the last spike up during pre market trading. I would be looking for a run to the pre market highs of $38.45. My stop loss would have been $36.15 fearing anything below that and the stock would start to fill in the gap up.

 

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. Its lead product candidate is Eteplirsen, an antisense phosphorodiamidate morpholino oligomer therapeutic, which is in Phase III clinical development stage for the treatment of individuals with Duchenne muscular dystrophy (DMD), a rare genetic muscle-wasting disease caused by the absence of dystrophin. The company also focuses on developing therapeutics for the treatment of drug-resistant bacteria, Becker muscular dystrophy, progeria, adult onset pompe, lupus and graft-versus-host diseases; and other rare, genetic, anti-infective, neuromuscular, and central nervous system diseases. The company is also involved in developing treatments that are in Phase I clinical trials for infectious diseases, including AVI-7288 for Marburg virus; and AVI-7100 for H1N1 influenza virus. Sarepta Therapeutics, Inc. was founded in 1980 and is headquartered in Cambridge, Massachusetts.  Yahoo Finance

 

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