(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.
Read more on Solid Biosciences data
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.
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