Sarepta Therapeutics stock tumbles 18% after posting Q1 loss, slashing outlook

Published 06/05/2025, 21:50
Sarepta Therapeutics stock tumbles 18% after posting Q1 loss, slashing outlook

CAMBRIDGE, Mass. - Sarepta Therapeutics Inc. (NASDAQ:SRPT) shares plunged 18% in after-hours trading Tuesday after the biotech company reported a wider-than-expected first quarter loss and significantly cut its full-year revenue guidance.

The gene therapy developer posted a non-GAAP loss of $3.42 per share for Q1 2025, far below the analyst estimate of $1.96 earnings per share. Revenue came in at $744.9 million, beating expectations of $695.9 million but failing to offset concerns about the company’s financial performance.

Sarepta slashed its 2025 revenue forecast to a range of $2.3 billion to $2.6 billion, down sharply from its previous outlook of $2.9 billion to $3.1 billion. The company cited an "updated ELEVIDYS outlook" for the reduced guidance, which now falls well short of the $3.07 billion consensus estimate.

"In the first quarter, we achieved net product revenue of $611.5 million, a 70% increase over the same quarter prior year," said Doug Ingram, president and CEO of Sarepta. "However, we also faced headwinds in the quarter. While we are taking a variety of actions to address and resolve these challenges, we have adjusted our guidance for 2025."

The company’s ELEVIDYS gene therapy for Duchenne muscular dystrophy generated $375 million in Q1 sales, up 180% YoY. However, this was not enough to prevent the significant guidance cut.

Sarepta also announced increased R&D and SG&A expense guidance of $1.784 billion to $2.184 billion for 2025, up from $1.2 billion to $1.3 billion previously, due to costs related to its recent Arrowhead Pharmaceuticals (NASDAQ:ARWR) collaboration.

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