10 Largest Biotech Hedge Funds and Their Top Stock Picks

8. Sarepta Therapeutics, Inc. (NASDAQ:SRPT)

Number of Hedge Fund Investors  in Q2 2024: 55

Farallon Capital’s Q2 2024 Investment Stake: $362 million

Sarepta Therapeutics, Inc. (NASDAQ:SRPT) is a mid sized American biotechnology company developing treatments for diseases such as dystrophy and children with Duchenne complications. Since it is a commercial stage biotechnology firm, the two keys to Sarepta Therapeutics, Inc. (NASDAQ:SRPT)’s hypothesis are its treatment for Duchenne called Elevidys and its exon-skipping therapies called phosphorodiamidate morpholino oligomer (PMO) for the same disease. Sarepta Therapeutics, Inc. (NASDAQ:SRPT) is one of the few companies in the industry that develops a proprietary exon skipping technology, which opens up its valuation to develop treatments for other diseases as well. Moving forward, if Elevidys sales remain strong and PMO continues to expand treatment options, Sarepta Therapeutics, Inc. (NASDAQ:SRPT)’s shares could see significant tailwinds. Elevidys is a $3.2 million drug that is one of the few of its kind. As an illustration of how Sarepta Therapeutics, Inc. (NASDAQ:SRPT)’s stock depends on the drug’s sales, consider the shares’ 12% drop in August after the firm announced that Elevidys’ quarterly sales had missed estimates. The firm could also see competitors for the drug, with Dyne Therapeutics also developing a Duchenne treatment.

Sarepta Therapeutics, Inc. (NASDAQ:SRPT)’s management commented on its PMO business during the Q2 2024 earnings call where it shared:

“Turning to PPMO. Early in the first quarter, we announced positive results from Part B of our MOMENTUM study, or study SRP-5051 201. MOMENTUM is an ongoing study of SRP-5051, our investigational peptide conjugated PMO or PPMO. We are actively engaging with Cedar regarding the Phase 3 study that could serve as a post-marketing requirement or PMR study for a potential accelerated approval. Agreement on the Phase 3 PMO study is a prerequisite for an accelerated approval filing. Our intent is to gain an agreement for a study that considers the current landscape can be completed in a reasonable time frame and reflects patients reluctance to enroll in a placebo-controlled trial.”