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FDA Buzz Halts Sarepta Therapeutics Inc (SRPT)

The FDA's Janet Woodcock seeming spoke out in favor of Sarepta Therapeutics Inc's (NASDAQ:SRPT) muscular dystrophy treatment on Monday

Apr 25, 2016 at 3:36 PM
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Sarepta Therapeutics Inc (NASDAQ:SRPT) was halted before the market opened, as speculation continues to swirl surrounding the Food and Drug Administration's (FDA) decision on the company's muscular dystrophy treatment, eteplirsen. Just this morning, the FDA's director of drug evaluation, Janet Woodcock, told an FDA-approved panel that it could be harmful ​not ​to approve a drug that works  While this panel of experts will vote on whether the treatment should be approved, Woodock will ultimately have the final say, with a decision expected before or on May 26. 

As mentioned, SRPT has been halted today, and remains docked at its Friday settlement of $14.95. This closing price capped a huge day to end the week, wiht the stock jumping 35.7%, thanks to buzz surrounding today's FDA meeting. Still, the shares remain 61% lower year-to-date -- and gapped lower last Thursday on speculation surrounding the drug's approval.

As far as sentiment goes, Sarepta Therapeutics Inc (NASDAQ:SRPT) is surrounded by skepticism on Wall Street. For starters, short interest represents almost 43% of the stock's float, while nine out of 13 brokerage firms rate the stock a "hold" or "strong sell." Meanwhile, SRPT's 10-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) of 0.58 rests just 14 percentage points from an annual high. 

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