(Bloomberg) -- Solid Biosciences Inc. shares were hammered in early trading after initial results from an early-stage trial for its Duchenne muscular dystrophy gene therapy showed minimal responses, pushing peer Sarepta Therapeutics Inc. higher.
Solid Bio opened at a record low after results from a trio of patients signaled the company will need to increase the dose of its medicine to trigger a notable benefit. The drugmaker fell 73 percent at the market open in New York while shares of Sarepta gained more than 4 percent.
JPMorgan analyst Anupam Rama, who has had an underweight rating on Solid Bio for almost a year, said the study update shows the “worst-case scenario” is playing out for the small-cap company. He expects Sarepta shares may rise 15 percent to 25 percent in the near term.
Solid Bio Chief Executive Officer Ilan Ganot said in a phone interview that “the data do not affect our timeline or the competitive nature of our program.” The company said last month that animal models suggested a patient benefit “in the range of 10% or higher” compared to the minimal results seen this morning.
Sarepta has been deemed the leader in the race to bring a new DMD gene therapy to patients with Pfizer Inc. and Solid Bio vying for their portion of the market. Pfizer’s studies are in an earlier phase of testing.
(Updates share movement in second paragraph.)
To contact the reporter on this story: Bailey Lipschultz in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Catherine Larkin at email@example.com
For more articles like this, please visit us at bloomberg.com
©2019 Bloomberg L.P.