11:38 AM EDT, 06/21/2024 (MT Newswires) -- Sarepta Therapeutics ( SRPT ) received label expansion from the US Food and Drug Administration for Elevidys to treat ambulatory Duchenne muscular dystrophy, marking a "best-case scenario" and exceeding expectations, BofA Securities said Thursday in a report.

Sarepta said late Thursday the agency approved the label expansion to include patients ages 4 and above and got

accelerated approval for non-ambulatory patients. Although supply constraints may limit the initial launch impact, the FDA's expansion "significantly increases the long-term commercial opportunity" for Elevidys, BofA said.

"We expect demand will be high given the high unmet need and will likely outpace supply and dosing capabilities," the report said. BofA increased its peak sales forecast for Elevidys to $4 billion from $2.5 billion.

BofA boosted Sarepta's price target to $213 from $166 and maintained the buy rating. Analysts including RBC, Barclays, Oppenheimer and Baird also increased their price targets.

Sarepta's shares rose surged 37% in recent trading Friday.

Price: 168.81, Change: +45.31, Percent Change: +36.69