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Why Spark Therapeutics Stock Rose in the Week Ended March 29

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Spark’s movement trend

On March 29, 2018, Spark Therapeutics was trading at $66.59, which represented a ~62% increase from its 52-week low of $41.06.

On March 26, Spark opened at $64.00 and witnessed a ~4% rise in the week to reach $66.59 on March 29.

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Reason for the rise

Spark Therapeutics stock has been witnessing growth since the end of December 2017. On December 19, 2017, the FDA approved Spark’s Luxturana, a gene therapy product for the treatment of individuals with confirmed biallelic RPE65 mutation-associated retinal dystrophy.

Luxturana is supposed to be administered only to individuals with mutations on both copies of the RPE65 gene.

Spark’s investigational drug SPK-8011 has demonstrated proof of concept for the treatment of hemophilia A. In January 2018, the FDA granted an orphan drug designation to SPK-8011, and in February 2018, the FDA granted it a breakthrough therapy designation.

In 2017, Spark Therapeutics reported revenue of $12.1 million compared to $20.2 million in 2016.

Analysts’ recommendations

Of the 20 analysts tracking Spark Therapeutics in April 2018, four have recommended “strong buys,” while ten have recommended “buys” on the stock. Five analysts have recommended “holds,” while one has recommended a “strong sell.”

On April 2, Spark Therapeutics had a consensus 12-month target price of $70.05, which represents a ~5.2% ROI (return on investment) over the next 12 months.

Peers’ ratings

Of the nine analysts tracking Exelixis (EXEL) in April 2018, ~78% have recommended some form of a “buy” rating on the stock. On April 2, Exelixis had a consensus 12-month target price of $35.29, which represents a ~59.3% ROI over the next 12 months.

Of the 19 analysts tracking Sarepta Therapeutics (SRPT) in April 2018, ~89% have recommended some form of a “buy” rating. On April 2, Sarepta Therapeutics had a consensus 12-month target price of $88.47, which represents a ~19.4% ROI over the next 12 months.

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