Sarepta Therapeutics stock soars after strategic restructuring plan unveiled

Published 16/07/2025, 21:10
© Reuters.

Investing.com -- Sarepta Therapeutics (NASDAQ:SRPT) stock soared 36% in after-hours trading Wednesday after the biotech company announced a major strategic restructuring plan designed to ensure long-term financial sustainability while focusing on high-impact programs.

The Cambridge, Massachusetts-based company revealed plans to cut approximately 500 jobs, representing 36% of its workforce, as part of a broader initiative expected to deliver about $400 million in annual cost savings. The restructuring aims to prioritize the company’s siRNA platform assets while maintaining its Duchenne muscular dystrophy portfolio.

Sarepta also reported preliminary second quarter financial results, with total net product revenue of $513 million, including $282 million from its gene therapy ELEVIDYS and $231 million from RNA-based PMOs. The company ended the quarter with approximately $850 million in cash and investments.

"Faced with environmental changes, we have decided to act decisively, implementing a focused strategy to ensure Sarepta remains a vibrant, financially enduring, patient-centric organization," said Doug Ingram, CEO of Sarepta Therapeutics.

Additionally, Sarepta provided an update on ELEVIDYS, its gene therapy for Duchenne muscular dystrophy. The company has agreed to the FDA’s request to include a black box warning in the drug’s label for acute liver injury and acute liver failure, which appears to resolve issues with the ambulant population indication. The company is also working on a protocol for additional prophylactic immunosuppression for non-ambulant patients.

As part of its pipeline reprioritization, Sarepta will pause several programs, including most of its gene therapies in development for limb-girdle muscular dystrophy, while continuing to advance its siRNA platform targeting conditions such as facioscapulohumeral muscular dystrophy, myotonic dystrophy type 1, and Huntington’s disease.

The company also announced several executive leadership appointments, including Ian Estepan as President and Chief Operating Officer and Louise Rodino-Klapac as President of Research & Development and Technical Operations.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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