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Sarepta (SRPT) Q1 Earnings Beat Estimates, Revenues Up Y/Y
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Sarepta Therapeutics, Inc. (SRPT - Free Report) reported adjusted earnings of 73 cents per share in the first quarter of 2024. The Zacks Consensus Estimate was pegged at a loss of 11 cents per share. In the year-ago period, the company posted adjusted loss of 99 cents.
The adjusted bottom-line figures exclude depreciation and amortization costs and stock-based compensation expenses. Including these items, earnings per share were 37 cents against the year-ago period’s loss of $5.86.
Sarepta recorded total revenues of $413.5 million, up 63% year over year. The upside was driven by sales of its four approved marketed therapies for Duchenne muscular dystrophy (DMD). The top line beat the Zacks Consensus Estimate of $372.8 million.
Following the announcement, shares of SRPT were up 6% in after-market trading on May 1. In the year-to-date period, the stock has risen 35.8% against the industry’s 10.6% decline.
Image Source: Zacks Investment Research
Quarter in Detail
Sarepta’s commercial portfolio includes three approved RNA-based PMO therapies — Exondys 51, Vyondys 53 and Amondys 45 — and the recently approved Elevidys gene therapy, all targeting DMD indication.
The company’s product revenues were up 55% year over year to $359.5 million, driven by an increased demand for its marketed products. While the metric beat our estimate of $344 million, it marginally missed the Zacks consensus estimate of $360 million.
Sarepta generated around $225.5 million from the product sales of its three PMO therapies, down almost 3% year over year.
The company generated $133.9 million from Elevidys sales compared with $131.2 million in fourth-quarter 2023. Elevidys received accelerated approval from the FDA last year in June as the first gene therapy for DMD and wascommercially launched in third-quarter 2023.
Elevidys sales beat the Zacks Consensus Estimate and our model estimate of $131 million and $125 million, respectively.
SRPT recorded around $54 million in collaboration revenues. This includes $48 million of revenues recognized related to Roche (RHHBY - Free Report) , declining an option to acquire the ex-US rights to a certain external, early-stage DMD development program. It also recorded contract manufacturing collaboration revenues of $5.8 million associated with commercial Elevidys supply delivered to Roche. In the year-ago period, it registered $22.0 million as collaboration revenues, which were also received from Roche.
Sarepta and Roche entered into a licensing agreement in 2019 to develop Elevidys. Per the agreement, Roche has exclusive rights to launch and commercialize Elevidys in ex-U.S. markets.
Adjusted research and development expenses totaled $178.1 million, down 19% year over year. This downside was primarily caused by capitalization of commercial batches of Elevidys manufactured after its approval in June 2023. This was partially offset by ramp-up of the company’s other late-stage clinical studies.
Adjusted selling, general & administrative expenses were $100.5 million, up 21% year over year. This was primarily caused by an increase in professional service expenses incurred by the company for Elevidys’ launch.
Recent Updates
In February, Sarepta announced that FDA accepted its efficacy supplement to the biologics license application, seeking to expand the treatment label for Elevidys. A final decision is expected by Jun 21, 2024.
The purpose of the efficacy supplement is two-fold. It seeks to expand the labeled indication for Elevidys to treat all DMD patients, irrespective of age and ambulation status. Subject to approval, it will also convert the Elevidys accelerated approval to a traditional approval.
In January, Sarepta started the late-stage EMERGENE study on gene therapy candidate SRP-9003 for the treatment of Limb-girdle muscular dystrophy type 2E. The company is also evaluating SRP-9003 in an early-stage study in the same indication.
In the past 60 days, estimates for ANI Pharmaceuticals’ 2024 EPS have risen from $4.25 to $4.44. Meanwhile, during the same period, estimates for 2025 EPS have improved from $4.83 to $5.04. Year to date, shares of ANIP have gained 20.6%.
Earnings of ANI Pharmaceuticals beat estimates in each of the last four quarters, the average earnings surprise being 109.06%.
In the past 60 days, estimates for Ligand Pharmaceuticals’ 2024 EPS have risen from $4.42 to $4.56. During the same period, estimates for 2025 EPS have improved from $5.11 to $5.27. Year to date, shares of LGND have registered breakeven growth.
Earnings of Ligand Pharmaceuticals beat estimates in each of the last four quarters, the average earnings surprise being 84.81%.
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Sarepta (SRPT) Q1 Earnings Beat Estimates, Revenues Up Y/Y
Sarepta Therapeutics, Inc. (SRPT - Free Report) reported adjusted earnings of 73 cents per share in the first quarter of 2024. The Zacks Consensus Estimate was pegged at a loss of 11 cents per share. In the year-ago period, the company posted adjusted loss of 99 cents.
The adjusted bottom-line figures exclude depreciation and amortization costs and stock-based compensation expenses. Including these items, earnings per share were 37 cents against the year-ago period’s loss of $5.86.
Sarepta recorded total revenues of $413.5 million, up 63% year over year. The upside was driven by sales of its four approved marketed therapies for Duchenne muscular dystrophy (DMD). The top line beat the Zacks Consensus Estimate of $372.8 million.
Following the announcement, shares of SRPT were up 6% in after-market trading on May 1. In the year-to-date period, the stock has risen 35.8% against the industry’s 10.6% decline.
Image Source: Zacks Investment Research
Quarter in Detail
Sarepta’s commercial portfolio includes three approved RNA-based PMO therapies — Exondys 51, Vyondys 53 and Amondys 45 — and the recently approved Elevidys gene therapy, all targeting DMD indication.
The company’s product revenues were up 55% year over year to $359.5 million, driven by an increased demand for its marketed products. While the metric beat our estimate of $344 million, it marginally missed the Zacks consensus estimate of $360 million.
Sarepta generated around $225.5 million from the product sales of its three PMO therapies, down almost 3% year over year.
The company generated $133.9 million from Elevidys sales compared with $131.2 million in fourth-quarter 2023. Elevidys received accelerated approval from the FDA last year in June as the first gene therapy for DMD and wascommercially launched in third-quarter 2023.
Elevidys sales beat the Zacks Consensus Estimate and our model estimate of $131 million and $125 million, respectively.
SRPT recorded around $54 million in collaboration revenues. This includes $48 million of revenues recognized related to Roche (RHHBY - Free Report) , declining an option to acquire the ex-US rights to a certain external, early-stage DMD development program. It also recorded contract manufacturing collaboration revenues of $5.8 million associated with commercial Elevidys supply delivered to Roche. In the year-ago period, it registered $22.0 million as collaboration revenues, which were also received from Roche.
Sarepta and Roche entered into a licensing agreement in 2019 to develop Elevidys. Per the agreement, Roche has exclusive rights to launch and commercialize Elevidys in ex-U.S. markets.
Adjusted research and development expenses totaled $178.1 million, down 19% year over year. This downside was primarily caused by capitalization of commercial batches of Elevidys manufactured after its approval in June 2023. This was partially offset by ramp-up of the company’s other late-stage clinical studies.
Adjusted selling, general & administrative expenses were $100.5 million, up 21% year over year. This was primarily caused by an increase in professional service expenses incurred by the company for Elevidys’ launch.
Recent Updates
In February, Sarepta announced that FDA accepted its efficacy supplement to the biologics license application, seeking to expand the treatment label for Elevidys. A final decision is expected by Jun 21, 2024.
The purpose of the efficacy supplement is two-fold. It seeks to expand the labeled indication for Elevidys to treat all DMD patients, irrespective of age and ambulation status. Subject to approval, it will also convert the Elevidys accelerated approval to a traditional approval.
In January, Sarepta started the late-stage EMERGENE study on gene therapy candidate SRP-9003 for the treatment of Limb-girdle muscular dystrophy type 2E. The company is also evaluating SRP-9003 in an early-stage study in the same indication.
Zacks Rank
Sarepta currently has a Zacks Rank #3 (Hold).
Sarepta Therapeutics, Inc. Price
Sarepta Therapeutics, Inc. price | Sarepta Therapeutics, Inc. Quote
Key Picks
A couple of better-ranked stocks in the overall healthcare sector include ANI Pharmaceuticals (ANIP - Free Report) and Ligand Pharmaceuticals (LGND - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for ANI Pharmaceuticals’ 2024 EPS have risen from $4.25 to $4.44. Meanwhile, during the same period, estimates for 2025 EPS have improved from $4.83 to $5.04. Year to date, shares of ANIP have gained 20.6%.
Earnings of ANI Pharmaceuticals beat estimates in each of the last four quarters, the average earnings surprise being 109.06%.
In the past 60 days, estimates for Ligand Pharmaceuticals’ 2024 EPS have risen from $4.42 to $4.56. During the same period, estimates for 2025 EPS have improved from $5.11 to $5.27. Year to date, shares of LGND have registered breakeven growth.
Earnings of Ligand Pharmaceuticals beat estimates in each of the last four quarters, the average earnings surprise being 84.81%.