Sarepta Therapeutics' (SRPT) Elevidys for Duchenne muscular dystrophy shows near-term stabilization, while the company's $800 million to $900 million operating expense base provides reassuring visibility around cash flow positivity, RBC Capital Markets said in a Thursday note.

The investment firm further said it does not view gene therapy competition as a major near-term threat, as management believes the US Food and Drug Administration is likely to require functional and randomized data from Regenxbio (RGNX) and Solid Biosciences (SLDB) rather than allow an accelerated approval pathway.

Regarding Amondys and Vyondys, the company believes strong real-world data, positive elements from the Essence study and precedent from NS Pharma should support continued market access, helping sustain roughly $400 million in revenue over the next several years, RBC noted.

The brokerage said the success of Sarepta's partnered siRNA programs for facioscapulohumeral muscular dystrophy and myotonic dystrophy type 1 is becoming increasingly important as competitive pressures could weigh on the company's exon-skipping franchise and, over the longer term, its gene therapy business.

RBC said positive data from the programs in H2 could support the stock.

The firm has a sector perform rating on the shares and a $19 price target.

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