Sarepta Therapeutics [NASDAQ: SRPT] was one of the big gainers on Friday. The stock closed the day with gains of 17.10%. This bullish sentiment seems to have spilled over into this week, as SRPT is one of the movers in pre-market. At the time of writing, the stock is up by 1.15% to trade at $153.70. This bullish sentiment is driven by news that its gene therapy drug is better than that of its competitor, Pfizer. According to Baird analyst, Brian Skorney, the Pfizer treatment fell short on safety and efficacy.
The treatment in question that has given Sarepta leverage over Pfizer is AAVrh74.MHCK7 micro-dystrophin. It uses an adenovirus vector to deliver the dystrophin gene, which promotes expression. The company reported that this allows the whole dystrophin complex to work normally, and protect muscles from deterioration. Pfizer’s treatment has a similar approach, but differs on the mini-dystrophin gene used for delivery.
This is a big deal because, it gives Sarepta an edge in the treatment of Duchenne Muscular Dystrophy (DMD), and investors seem to be happy with it. From a look at the charts, SRPT made a bullish move on Friday. Its pre-market price action indicates that it has the potential to continue this bullish run, with a possible breakout of its Friday’s high of $155.75 in the near term.
Outside of the technical driven bullish sentiment, SRPT stands to gain from the positive sentiment in the markets at this point. After lots of uncertainty, there is finally hope that the U.S and China are working towards an amicable settlement to their trade dispute. Momentum in stocks that are already bullish, such as SRPT, could see additional gains as global markets wake up to positive news from the G20.