Sarepta (SRPT) Narrows Q4 Loss, Exondys 51 Sales Impress

Sarepta Therapeutics, Inc. SRPT reported narrower-than-expected loss in the fourth quarter of 2017. The biotech expects 2018 sales to double for Exondys 51, the only marketed drug for Duchenne muscular dystrophy (“DMD”). Shares were up almost 1.4% in after-hours tradings.

So far this year, Sarepta’s shares have recorded a growth of 90.4%. This compares favorably with the 6.9% decrease registered by the industry during this period.

Narrower Loss

Sarepta incurred a loss of 37 cents per share in the fourth quarter of 2017, narrower than the year-ago loss of 71 cents. However, it surpassed the Zacks Consensus Estimate of a loss of 31 cents.

Quarterly Details

Sarepta’s Exondys 51, the first DMD treatment to gain approval in the United States in September 2016, has shown strong performance in the fourth quarter. Sarepta recorded revenues of $57.3 million, up 24.6% sequentially, primarily attributable to the sales of Exondys 51.

The drug is under review in EU. However, revenues slightly missed the Zacks Consensus Estimate of $57.38 million. In the prior-year quarter, Sarepta earned revenues amounting $5.4 million.

Research and development (R&D) expenses were $44.4 million in the fourth quarter, down 37.2% year over year. The company remunerated an up-front payment of $40.0 million to Summit (Oxford) Ltd. in the year-ago quarter.

Selling, general & administrative (SG&A) expenses were $32.2 million, up 40.5% year over year, due to worldwide commercial initiatives, compensation and other personnel expenses.

2017 Performance

For the full year 2017, adjusted loss was 86 cents per share compared with $5.49 in 2016. The loss was wider than the Zacks Consensus Estimate of 77 cents.

Revenues for 2017 came in at $154.6 million, which was almost in line with the Zacks Consensus Estimate of $154.67 million.

Outlook

Based on sales trends witnessed in 2017, Sarepta expects Exondys 51 sales to double in 2018. The Zacks Consensus Estimate for 2018 sales is pegged at $300.47 million.

Sarepta Therapeutics, Inc. Price, Consensus and EPS Surprise

 

Sarepta Therapeutics, Inc. Price, Consensus and EPS Surprise | Sarepta Therapeutics, Inc. Quote

 

Zacks Rank & Stock to Consider

Sarepta Therapeutics carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the healthcare sector are Ligand Pharmaceuticals Inc. LGND, Regeneron Pharmaceuticals, Inc. REGN and Enanta Pharmaceuticals, Inc. ENTA. Regeneron carries a Zacks Rank #1 (Strong Buy) while Ligand and Enanta carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Ligand’s earnings per share estimates have moved up from $3.78 to $4.15 for 2018 over the last 30 days. The company pulled off positive earnings surprises in three of the trailing four quarters, with an average beat of 24.88%. The share price of the company increased 51.6% over a year.

Regeneron’s earnings per share estimates have moved up from $17.13 to $18.65 and from $20.38 to $21.56 for 2018 and 2019, respectively, in the last 30 days. The company pulled off a positive earnings surprise in three of the last four quarters, with an average beat of 9.15%.

Enanta Pharma delivered a positive earnings surprise in three of the last four quarters, with an average beat of 373.1%. The share price of the company surged 169.9% over a year.

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