Shares of Sarepta Therapeutics (SRPT) fell 4% on Tuesday as investors contemplated the intensifying competition for its Duchenne muscular dystrophy therapies in light of recent updates from rival Dyne Therapeutics.
The FDA accepted Dyne Therapeutics’ application seeking approval for its DMD therapy z-rostudirsen on Monday. Priority Review was granted, and the agency will now decide on the application by January 21, 2027, potentially allowing a U.S. launch in early 2027.
Following Dyne’s update, Citi reiterated a ‘Sell’ rating on SRPT with a $13 price target, citing the expected rise in competition within the Duchenne muscular dystrophy (DMD) exon-skipping market. The price target implies nearly 23% downside from Monday’s close. Citi noted that z-rostudirsen could differentiate from Sarepta’s approved Exondys 51 (eteplirsen) on two key fronts: higher efficacy and less frequent dosing.
Duchenne Muscular Dystrophy (DMD) is caused by mutations in the DMD gene that prevent the production of functional dystrophin. Restoring dystrophin expression is the primary focus of DMD research. In a clinical trial, z-rostudirsen produced a statistically significant increase in muscle content-adjusted dystrophin expression to 5.46% of normal at six months, a level substantially higher than what has typically been reported with Exondys 51.
Furthermore, Z-rostudirsen is administered intravenously at 20 mg/kg every four weeks, compared with the weekly infusions required for Exondys 51.
Sarepta has long led the exon-skipping DMD segment with Exondys 51, Amondys 45, and Vyondys 53, while also marketing the gene therapy Elevidys. If z-rostudirsen is approved, it would represent the first potential new entrant in the exon 51-skipping category in years and could erode Sarepta’s established position through superior dystrophin restoration and a more patient-friendly dosing schedule.
On Stocktwits, retail sentiment around SRPT improved from ‘bearish’ to ‘neutral’ over the past 24 hours, while message volume rose from ‘low’ to ‘normal’ levels.
Meanwhile, sentiment around DYNE stayed within ‘bullish’ levels, accompanied by ‘high’ levels of chatter.
A Stocktwits user expressed disappointment over SRPT stock’s performance this year, stating that the company’s management should buy the shares to instill investor confidence.
Another user highlighted the company’s annual revenue and profitability and opined that the stock’s current share price is “pricing in a lot of bad news.” “If Sarepta stabilizes, the upside could be significant,” they said.
While SRPT stock has fallen 25% year-to-date, DYN has gained 22%.
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