Sarepta down 9% as Duchenne treatment gets narrow population approval

• Sarepta Therapeutics (NASDAQ:SRPT) is down ~9% Friday morning as the Street is not happy with a narrower label given to the company's newest Duchenne muscular dystrophy therapy.

• Elevidys (elandistrogene moxeparvovec), a one-time gene therapy, was approved by the US FDA June 22 for boys four and five years old with DMD and a confirmed mutation in the DMD gene.

• Given Elevidys received accelerated approval, Sarepta (SRPT) will need to conduct a confirmatory trial. Top-line results are expected by the end of the year.

• Evercore ISI's Gavin Clark, who rates the company inline, lowered his price target to $139 from $151 (~12% upside based on Thursday's close). He noted Sarepta (SRPT) will need positive data from that trial to potentially expand the label as well as keep it on the market.

• Citi's Neena Bitritto-Garg, who has a buy rating, lowered her price target to $161 from $204 (~30% upside). She added that in the near term, she expects shares to trade range-bound.

More on Sarepta

• Sarepta Therapeutics: Value Proposition Ahead Of DMD Gene Therapy Decision

• Regenxbio, UPenn file second patent suit against Sarepta over DMD therapy