Sarepta Therapeutics, Inc. (NASDAQ: SRPT) stock jumped by over 20 percent after the company brought in revenues much higher than expected in its second-quarter earnings report Wednesday. Shares had gone from $34.08 at market close on Wednesday to $41.16 at open on Thursday.
Sarepta announced its quarterly revenue of $35 million, which is $13 million above what Thomson Reuters expected. Its main product, Exondys 51, "continues to demonstrate strong momentum" in the U.S. market, SunTrust said, and it is also about to hit the European Union market soon.
Exondys 51, which is also its only approved drug, allowed the biotech to boost its 2017 guidance to $125 million to $130 million.
The company brought in almost the same amount of sales in the second quarter as they did in the past six fiscal years.
Wall Street claims that the company’s focus is to develop treatment for rare neuromuscular diseases is paying off, making Sarepta in a position to dominate its area of the drug market.
"We believe Sarepta is on track to become a [Duchenne Muscular Dystrophy]-focused powerhouse," a SunTrust analyst wrote in a note.
As the patent dispute between Sarepta and BioMarin is about to end, a new licensing agreement would allow Sarepta payout of $35 million in exchange for the rights to develop more duchenne muscular dystrophy drugs. Due to the new agreement, the company expects to “report modest EU sales” in the fourth according said SunTrust.
Leerink analyst Joseph Schwartz stated on Wednesday that the company could add more revenue because patients in North America, South America, and Europe will benefit from.
Now, Sarepta seems to be very confident that this strong momentum in sales, it believes that it is sustainable going forward.