Sarepta Surges After-Hours As It Slashes 500 Jobs Amid FDA Black Box Warning For Gene Therapy — Retail Eyes Rebound

Sarepta Therapeutics shares surged 34% in after-hours trading on Wednesday after the company said it would slash 500 jobs, or 36% of its workforce, as part of its restructuring plan. 

The move is expected to decrease costs by $400 million annually starting in 2026, the company said.

The restructuring measures, which involve reprioritizing the drug pipeline, will decrease operating expenses, while strengthening the company’s financial commitment fulfillment, including the upcoming convertible note maturity in 2027.

The move is part of a broader strategic shift to focus on its siRNA platform, which the company said offers higher-impact, near to mid-term opportunities. 

Programs targeting limb-girdle muscular dystrophy (LGMD) will be paused, although Sarepta still plans to file a Biologics License Application for SRP-9003 for Limb-girdle muscular dystrophy type 2E/R4 later this year. 

Other deprioritized programs may be partnered out.

Sarepta also provided an update on its Duchenne muscular dystrophy gene therapy ELEVIDYS (delandistrogene moxeparvovec). 

The U.S. FDA has requested a black box warning for acute liver injury and failure be added to the label, which the company agreed to. 

Sarepta said the update resolves outstanding issues related to the use of ELEVIDYS in ambulant patients.

For non-ambulant patients, Sarepta previously paused shipments while assessing additional safety measures. 

An expert panel has now endorsed the addition of sirolimus to the immunosuppression regimen. Sarepta said it will submit the revised protocol to the FDA and propose testing it in a new patient cohort under the ENDEAVOR trial.

In mid-June, Sarepta stock came under selling pressure after it reported the deaths of two patients who were on the gene therapy.

The company reported preliminary second-quarter net product revenue of $513 million, with $282 million from ELEVIDYS and $231 million from its RNA-based PMO therapies. 

GAAP R&D and SG&A expenses totaled $338 million, while non-GAAP expenses were $294 million. 

Sarepta ended the quarter with approximately $850 million in cash and investments. The final results are expected in early August.

Sarepta said the restructuring will lower average annual non-GAAP R&D and SG&A expenses to between $800 million and $900 million, starting next year. It will also help maintain access to its $600 million revolving credit facility.

On Stocktwits, retail sentiment for Sarepta was ‘extremely bullish’ amid ‘high’ message volume.

One user said they expected Sarepta’s stock to climb back above $35 by year-end, citing the company’s restructuring and renewed focus.

Another pointed to the stock’s sharp decline over the past six months and suggested it now looked like a bargain for a potential acquirer. They also opined that Sarepta is a clear leader in Duchenne muscular dystrophy and assigning a near-term value of $60.

Sarepta’s stock has declined 85.2% so far in 2025.

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