Investors Remain Confident in Sarepta After Shares Fall 20 Percent

Sarepta Therapeutics (SRPT) Inc., a drug developer with no active products on the market, plunged 21.20 percent today after a Wall Street Journal story about its latest trials left doubts over whether its drug to treat a genetic disorder works, and whether the FDA would actually approve it.

Investors on Stocktwits think the fall in price is not justified. Many of them believe that while one of the patients in the trial showed slower than expected progress, the drug itself still has significant potential and the stock is likely to rise.

Duchenne muscular dystrophy is a genetic disorder that mainly affects boys between ages three and five that causes progressive muscle degeneration and weakness, according to the Muscular Dystrophy Association.

Sarepta’s trial consists of 12 boys and the company is hoping the tiny study will be enough to get the drug approved. Needham & Company analyst Chad Messer said in a note that the WSJ article was misleading. “While the article does not appear to contain any factual errors, the article is misleading in that it implies there has been some recent delay to eteplirsen NDA filing time lines. In their press release this morning, Sarepta stated that they are on track to file by YE:14. We have confirmed this statement with the company, and point out that it is consistent with what was said on the company’s last earnings call in May,” he said in the note.

If you enjoyed this article, follow the author on Twitter and on StockTwits.