Sarepta

Because the media didn’t cover it AT ALL, I am writing this blog about Sarepta Therapeutics. They trade under the symbol SRPT. Earlier this week, the stock was valued around $14 a share and yesterday it shot up to almost $45! Of course, thanks to the Government I’m not allowed to have money, but were I able to buy 1000 shares, I could have sold yesterday for a profit of $31,000! With the current social security restrictions, I would not have had to work for 31 months! That’s a separate issue though. My mom did make a nice profit on her tiny little account thanks to the advice of yours truly.

So why do I like Sarepta? If you look at the pure fundamental numbers, they are awful. It’s definitely one of those companies that are high risk, but sometimes high rewards come with those risks. I believe most bio-tech companies fall into this category because of the regulations of their product. They may have a great idea that can cure a disease, but one bad side effect and a lawsuit then the company is ruined.

However, this company is attacking an issue that hits home for me. They are working on a drug that will help people with Duchenne Muscular Dystrophy called eteplirsin. The drug passed the second phase of FDA testing with flying colors. So far it has no side effects. Children who took the drug were able to walk 90 meters further than those who took placebos. With a disease that takes away the ability to walk, 90 meters is life-changing.

This is why I like the investment even though the numbers say otherwise. I love the attitude of Sarepta. By tackling Duchenne, they are showing me that they are more interested in helping the world than they are in making a profit. They could do like other companies and work on drugs for weight loss, erectile dysfunction, or to cure baldness, but instead they are going after something that could change the world.

To me, they are the “little engine that could” of the bio-tech industry. I hope that after they help people with Duchenne, they can move on to SMA. I don’t have to have a cure, just a chance for an easier life. I think someone willing to chase these challenges is worth a little faith as an investor…I know we all wish we had faith in Apple when it was $17 a share.

As far as the stock, you should have sold it at $45 and I hope nobody bought it at that price. It dropped 15% today and will probably continue to drop to end the week as people take profits. My plan is to watch it. When it hits a bottom, I will invest in it again. They are supposed to have their final testing later this year and I really believe it will pass. There is even talk about the FDA giving the drug early approval because there are no other treatments for Duchenne. Some analysts have a $36 price target on the stock, which I think is a fair value. If this drug passes, I bet it hits $50, but the safe play is to watch for a bottom in the twenties as a buying opportunity.

Again this is a high risk stock and you should not invest more than you are willing to lose. It sure is nice to see a company trying to help people though. I wonder why the media hasn’t covered this wonderful story as it unfolds…Oh wait; we had to spend more time hearing about which Politician lied!

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