03:42 PM EDT, 05/02/2024 (MT Newswires) -- Sarepta Therapeutics' ( SRPT ) regulatory review of its Elevidys therapy for Duchenne muscular dystrophy is advancing faster than anticipated, Morgan Stanley said in a report emailed Thursday.

"Overall, we view acceleration of the [US Food and Drug Administration] review process into labeling discussions ahead of schedule as a positive," Morgan Stanley said. "We continue expect a broad label with expansion to ambulatory DMD patients of all ages as the most likely outcome."

In Q1, Elevidys sales of $134 million aligned with expectations of $135 million, signaling a 2% sequential growth as expected due to its limited label, Morgan said.

Morgan Stanley reiterated its overweight rating on Sarepta Therapeutics ( SRPT ) and raised its price target to $165 from $160.

"We are overweight based on the potential of the DMD franchise, which we believe is underappreciated as we expect a broad label for Elevidys to support continued growth," Morgan Stanley said.

Sarepta shares rose 1% in recent trading Thursday.

Price: 132.18, Change: +1.28, Percent Change: +0.98