re: "Does $40 within a week sound out of reach? Just watch..."
Sarepta was $34.02 when I wrote that on Tuesday. Now it's up to $37 - having hit $39.34 earlier today.
April 28, 2017
Yes, Sarepta Reported Earnings…But That's Not Why It's Flying Today
Barrons.com
Sarepta Therapeutics (SRPT) reported a larger-than-expected loss but much better sales this morning, which had given its shares a small boost in pre-open trading. Speculation that Sarepta could be taken over, however, have caused its shares to skyrocket.
Sarepta reported a loss of 60 cents a share, missing analyst expectations for 60 cents a share, but sales of $16.3 million easily surpassed the Street consensus for $13.9 million. Instinet's Christopher Marai and team call it a "strong quarter" but see "more to come." They explain:
...checks suggest initial slow start at some sites but continued improvement with faster reimbursement and broader access. Sarepta stated its prescriber base increased 30% from 4Q16 (30 physicians submitting forms) and all tier 1 centers having submitted start forms, and first start forms from tier 3 centers have begun to flow in. Additionally, patients on commercial drug in 35 states...
Notably, Sarepta raised FY2017 revenue guidance to >$95mn (previously >$80mn), which represents sales generated in the U.S. only, and we now estimate FY2017E US sales of $109mn. We reiterate our Buy rating and $84 target price, updating our estimates for guidance and commentary around earnings.
But it's Sarepta's announcement that its CEO was stepping down that caused investors to start betting that it could be a takeover target. TheStreet.com's Adam Feuerstein explains why, though he notes that "there is no outward evidence" of an imminent takeover:
Sarepta Therapeutics (SRPT) CEO Ed Kaye said Thursday he's stepping down, although he'll remain with the company as a director and advisor.
Also Thursday, Sarepta disclosed Sanofi (SNY) executive Dr. Jean-Paul Kresse, a member of Sarepta's board of directors since 2015, decided not to stand for re-election due to time commitments and "a possible conflict of interest associated with his future endeavors."
The timing of these two departures could be coincidental and mean nothing, or they might signal Sanofi's interest in acquiring Sarepta.
Shares of Sarepta Therapeutics have gained 9.6% to $38.06 at 10:14 a.m. today, while Sanofi has advanced 0.8% to $47.30.
http://www.barrons.com/articles/yes-sarepta-reported-earningsbut-thats-not-why-its-flying-today-1493388970?mod=yahoobarrons&ru=yahoo&yptr=yahoo
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