Sarepta Therapeutics stock has a 73% upside potential, according to one Wall Street analyst.

On February 20th, Wedbush financial analyst Andreas Argyrides restated his price target. Sarepta treatment (SRPT -0.97%) In the process, it claimed its stock price would reach $224, an increase of 73%. According to Argyrides’ calculations, Sarepta is likely to successfully navigate major upcoming regulatory catalysts related to the target market size of its newest drug, a gene therapy called Elevidys approved to treat Duchenne muscular dystrophy (DMD) in people between the ages of four and four. . There are five people who can still walk.

Simply put, the company is trying to get Elevidys approved to treat patients with DMD, regardless of their age or how well they are dealing with the mobility effects of the disease. In early March, the company expects to receive a preliminary hearing from Food and Drug Administration (FDA) regulators on whether Elevidys is eligible to expand its list of approved indications. The final ruling is expected to come out around the end of June or early August.

Why Elevidys Matters to Shareholders

With four DMD drugs on the market and more than 40 programs for various indications in the pipeline, regulatory decisions on Elevidys are more important than they first appear. In 2023 alone, the drug generated $200 million of the company’s total sales of more than $1.1 billion, pushing its own expectations to the next level and contributing to 36% year-over-year sales growth.

Remember, that total comes from sales only to a very small subset of DMD patients. Overall, the condition is thought to affect one in 3,500 newborns each year. If Argyrides’ estimates are correct and the FDA rules in the company’s favor, Sarepta would become a much more valuable business overnight, and the stock would have to rise to reflect that.