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CAMBRIDGE, Mass. - Sarepta Therapeutics, Inc. (NASDAQ:SRPT) shares jumped 3.7% after the precision genetic medicine company reported second-quarter earnings that significantly exceeded analyst expectations, with the resumption of ELEVIDYS shipments for ambulatory Duchenne muscular dystrophy patients driving optimism.
The company reported adjusted earnings of $2.02 per share, substantially beating the analyst consensus of $0.70. Revenue reached $611.1 million, surpassing expectations of $532.86 million and representing a 68% increase from the same quarter last year. Net product revenues totaled $513.1 million, up 42% YoY.
"We are very pleased that following a rapid review of the safety data, the FDA swiftly recommended that we take the ambulatory patient population off shipment pause and, following that, we have already resumed deliveries," said Doug Ingram, chief executive officer of Sarepta. "Infusions are taking place for the ambulatory community."
The company continues to work with the FDA on safety labeling and risk-mitigation approaches for non-ambulatory individuals. Sarepta delivered both GAAP and non-GAAP operating profits in the quarter, with cash flow turning positive as total cash and investments increased by $202.8 million from the previous quarter.
The previously announced restructuring is advancing as planned, with Sarepta on track to realize over $100 million in cost savings through the end of 2025. The strategic cost reductions are designed to position the company to repay its 2027 convertible notes while continuing to deliver therapies to patients with rare genetic diseases.
Looking ahead, Sarepta expects multiple clinical data readouts and milestones in 2025 and early 2026 to support its siRNA franchise, including programs for FSHD, DM1, SCA2, and Huntington’s Disease. The company recently reached a collaboration milestone with Arrowhead Pharmaceuticals (NASDAQ:ARWR) for its DM1 program, triggering a $100 million milestone payment.
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