Shares of Sarepta Therapeutics Inc (NASDAQ:SRPT) went back down almost 12 percent today, to $39.65 per share, after the company surged to nearly 200 percent, with a closing price of $44.93 per share yesterday.
The stock value of value of the Washington-based biotechnology company was boosted by the good news about the result of the clinical study for Eteplirsen, a muscular dystrophy treatment.
Sarepta Therapeutics Inc (NASDAQ:SRPT) announced that Eteplirsen met the primary endpoint of increased novel dystrophin, and demonstrated a significant clinical benefit on a 6-minute walk test, after 48 weeks of treatment in Phase IIb Study, in Duchenne Muscular Dystrophy.
According to the principal investigator of the PaseIIb study, Dr. Jerry Mendell, Director of the Centers for Gene Theraphy and Muscular Dystrophy at Nationwide Children’s Hospital, the result of the study was a “significant milestone and a defining moment of progress for patient with DMD.” The scientific community has been working for decades in developing treatments for the deadly disease.
Yesterday’s surge in the stock value of Sarepta Therapeutics Inc (NASDAQ:SRPT) was obviously driven by investors’ optimism on the outcome of Etiplersin treatment, and the positive expectations of research analysts from Think Equity, particularly on the upcoming presentation of data for Eteplirsen from the Phase I/II study during the International World Muscle Society Congress, in Perth, Australia on October 9-13.
The decline in the stock value of the company today was possibly affected by the notice received by the biotech company from the Department of Defense, regarding the termination of the Ebola Therapeutic Program, which is part of the Sarepta Therapeutics Inc (NASDAQ:SRPT) contract for advanced development of hemorrhagic fever virus therapeutics, due to budget limitations.
On the other hand, shares of NuVasive Inc (NASDAQ:NUVA), a medical device company engaged in developing and marketing minimally disruptive surgical products and procedures for the spine, declined by more than 33 percent after the company projected a weak third quarter revenue. The company expects to report $147 million in revenue, lower than its previous estimate $154.4 million revenue. The average consensus revenue estimate, compiled by FactSet, was $153.6 million.
Meanwhile, CollabRx, Inc. (NASDAQ:CLRX), a data analytics company, emerged as one of the strong performers today, as the company’s stock climbed by almost 50 percent, to $5.65 per share, after the company announced its long-term partnership agreement with Life Technologies (NASDAQ:LIFE) in molecular diagnostics.