Sarepta Therapeutics Announces Partnership With Roche to Sell Key Gene Therapy

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Shares of Sarepta Therapeutics were gaining this week after Wall Street learned that the company will team up with Roche to sell a key gene therapy outside the U.S.

Under the terms of the deal, Roche will pay Sarepta a total of $1.15 billion up front: $750 million in cash and $400 million in SRPT stock. The deal values SRPT stock at $158.59 per share on common stock, Sarepta said in a news release.

The company could also receive up to $1.7 billion in regulatory and sales milestone payments and it is also eligible to receive royalties on net sales. Roche and Sarepta will split development costs globally. Sarepta will retain the rights to sell the gene therapy within the U.S.

SVB Leerink analyst Joseph Schwartz remarked, “One of the largest single-asset, ex-U.S. deals to date, this licensing agreement instills added confidence in Sarepta’s gene therapy programs and removes any remaining financial overhang for Sarepta, in our view.”

“The deal may bode well for the ability to produce enough SRP-9001 via Sarepta’s hybrid adherent-based approach and SRP-9001’s likelihood to success in the ongoing (clinical) studies,” he said. “We see Roche as a suitable partner that will be able to extend SRP-9001’s reach globally.”

Schwartz has an “outperform” rating on Sarepta shares.

The deal combines Sarepta’s leading gene therapy, dubbed SRP-9001, with Roche’s global reach, Sarepta said in its release. Sarepta will also benefit from “the validation that comes with joining forces with Roche.”

Chief Executive Doug Ingram stated, “This collaboration will not only increase the speed with which SRP-9001 could benefit DMD patients outside the United States, but will also greatly expand the scope of territories within which we could potentially launch SRP-9001 and improve and save lives.”

Shares of Sarepta gained 7.5% on the news on Monday.

Disclaimer: We have no position in Sarepta Therapeutics Inc. (NASDAQ: SRPT) and have not been compensated for this article.

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