In Part 3 of our 3-part series, we look at the last five stocks we believe can double in 2017. As explained in Part 1 and Part 2, these stock selections are not without risk. That’s why we have adopted a number system between 0-10 to gauge just how likely these triple digit gains are, in 2017.
So while Sarepta Therapeutics Inc (NASDAQ:SRPT), General Motors Company (NYSE:GM), Chesapeake Energy Corporation (NYSE:CHK), Marathon Oil Corporation (NYSE:MRO), and FireEye Inc (NASDAQ:FEYE) all have the potential to double in 2017, all have one or many risks that could prevent proper appreciation.
The big question is will the companies overcome these risks and ultimately soar higher? That question will be explored.
Stocks to double: SRPT stock
Sarepta’s drug, Exondys 51, got approved with very little data, and a lot of patient and political pressure on the FDA. Sarepta still has to do a post approval study, and many insurers are giving the company a hard time to cover the pricey drug, $300,000/year.
Still, there are no other approved treatments for DMD, and based on our sources physician’s have had success at getting insurers to approve and cover Exondys 51. Like all Orphan, high priced drugs, it just takes times, and often times a dedicated team who works exclusively with insurance companies and PBMs.
With that said, Sarepta has the advantage of knowing that DMD patients are lining up to use Exondys 51, as families have waited for its FDA approval for a long time.
Even with reimbursement issues, we believe SRPT could very well have 750 patients on Exondys 51 in 2017. That would put sales on a $225 million run rate, and admittedly, that could be very conservative.
Given the volatility in SRPT stock coupled with the likelihood for accelerated script and sales growth (with low costs), SRPT stock could double. And remember, many believe Exondys will be a billion dollar drug. Therefore, 100% SRPT stock gains could be the start of something much bigger.
The one drawback is uncertainties surrounding the FDA and insurance companies. Thus, I give SRPT stock a score of “7”, reflecting its likelihood to really double in 2017.