11:41 AM EDT, 07/29/2024 (MT Newswires) -- Sarepta Therapeutics' ( SRPT ) Elevidys, a gene therapy for the treatment of Duchenne muscular dystrophy, or DMD, has drawn "high interest" from physicians and patients, RBC Capital Markets said in a report Monday.

The investment firm also said concerns around treatment throughput, center capacity, and manufacturing supply seem to be "overdone" following a physician survey and feedback on initial on-the-ground dynamics from the leader at a major DMD advocacy group.

RBC said that based on a survey of 11 physicians that it conducted, 82% "cited their preferred therapy as one that included Elevidys" and that only 36% of the physicians preferred a combination therapy, which it said indicated that "concerns on payer pushback may be overstated."

Such "strong desire to use Elevidys suggests the fundamental demand is there for a rapid launch," the firm said.

While patient demand seems to be "meaningfully" exceeding capacity, RBC said it does not foresee any "significant limitations" on patient treatment.

All this suggests an increasing possibility of a "significant near-term launch inflection" for the stock, it said.

"We see an opportunity to buy the stock near pre-label expansion levels ahead of a likely major launch," RBC said, as it upgraded its rating on the stock to outperform from sector perform while reiterating its $182 price target.

Shares of Sarepta Therapeutics ( SRPT ) were up more than 2% in recent trading.

Price: 147.89, Change: +3.65, Percent Change: +2.53