Sarepta Therapeutics Shares Down 3% Following FDA’s Clinical Hold Announcement

Sarepta Therapeutics, Inc. (NASDAQ: SRPT) shares were trading nearly 3% lower pre-market following the announcement that the U.S. Food and Drug Administration (FDA) placed a clinical hold on the company’s SRP-5051 following continued observations of low magnesium levels, a side effect previously observed with the drug, including an SAE.

Analysts at RBC Capital provided their views on the company following the announcement, stating they believe this side effect should be manageable with more proactive monitoring/intervention and the program should be able to get back on track.

While noting that the drug is important for the life cycle/floor, the analysts said that it is not the critical value driver, and they expect the company to manage through this issue regardless.