Sarepta Therapeutics Inc (NASDAQ:SRPT) made two substantial announcements on June 29. First, the biotechnology company announced the submission of a New Drug Application, followed by a debt financing announcement. Consequently, shares of Sarepta were up as much as 7% in pre-market trading but then fell 10% during trading hours on Monday. Shares of Sarepta closed at $31.26 on June 29, approaching its 52-week high of $33.16.

Most notably, the company announced it had completed a New Drug Application on behalf of Eteplirsen to submit to the FDA. The application included a request for Priority Review. Eteplirsen is Sarepta’s lead product candidate that aims to treat Duchenne muscular dystrophy. Sarepta notes that this specific treatment is applicable to approximately 13% of people with Duchenne muscular dystrophy.

The company also announced on June 29 that it had secured $40 million in debt financing in a credit and security agreement with MidCap Financial. Sarepta will be able to borrow up to $40 million at an annual rate of 7.75%. This agreement means that Sarepta is able to borrow money without giving up any ownership rights. Sarepta must pay back the principal by June 2018.

Following the announcements, analysts weighed in on the stock, predominantly in response to the New Drug Application.

Five-star analyst Brian Skorney of Baird has been following Sarepta in the company’s pursuit of launching Eteplirsen. After Sarepta announced its intent to submit an NDA for Eteplirsen, Skorney maintained an Outperform rating on the stock and significantly increased his price target 70% to $34 noting that Sarepta shares will likely climb “significantly higher over the next several months.” At the time of this comment, Sarepta was trading at approximately $24.

Skorney reiterated his Outperform rating on Sarepta with an unchanged price target of $34 on June 29 after the NDA announcement. Skorney acknowledged that the FDA recently accepted Biomarin’s NDA for drisapersen; another drug aimed at treating Duchenne muscular dystrophy. Despite the competition, this news makes Skorney “incrementally” more confident that “the FDA is showing an inordinate amount of flexibility when it comes to DMD.” Skorney continued, “We continue to believe SRPT shares could see triple digits if eteplirsen is approved, which we would expect to hear on or before Leap Day 2016, and like the risk/reward at these levels.”

Separately, five-star analyst Debjit Chattopadhyayof Roth Capital weighed in on Sarepta as he reiterated a Buy rating on the stock with a $45 price target. The analyst believes that Sarepta would not have proceeded with the New Drug Application without some sort of encouragement from the FDA.

Out of the ten analysts polled by TipRanks, six are bullish on the stock while four are neutral. The average 12-month price target for Sarepta is $32.13, marking a potential 14% upside from where the stock is currently trading.

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