Morgan Stanley Upgrades Sarepta Therapeutics, Inc. to Overweight

Sarepta Therapeutics, Inc. (NASDAQ:SRPT) is under scrutiny as Pomerantz LLP investigates potential securities fraud or unlawful business practices. This investigation is linked to Sarepta's Duchenne muscular dystrophy drug, Elevidys, following two patient fatalities due to acute liver failure. The first incident, disclosed on March 18, 2025, led to a sharp stock price decline of $27.81 per share, or 27.44%, closing at $73.54.

The situation worsened on June 16, 2025, when Sarepta reported a second fatality, prompting the company to halt its clinical trial and suspend Elevidys distribution for non-ambulatory patients. This announcement caused another significant stock drop of $15.24 per share, or 42.12%, closing at $20.94. These events have raised concerns among investors and analysts alike.

In response to these developments, Cowen & Co. downgraded Sarepta from a "Buy" to a "Hold" rating on June 18, 2025, when the stock was priced at $20.77, as highlighted by TheFly. Meanwhile, Wells Fargo maintained its "Overweight" rating but adjusted the price target from $100 to $75, reflecting the ongoing uncertainty surrounding the company.

Currently, SRPT's stock is priced at $19.25, marking a 4.13% decrease with a $0.83 change. The stock has fluctuated between $18.70 and $19.76 today, with a 52-week high of $168.31 and a low of $18.30. Sarepta's market capitalization is approximately $1.89 billion, with a trading volume of 4,203,125 shares on the NASDAQ.

• Sarepta Therapeutics, Inc. (NASDAQ:SRPT) experiences a significant stock price drop following a patient death related to its ELEVIDYS treatment, but long-term investors might see this as an opportunity.
• The company's overall product revenue has seen a 70% growth, indicating underlying business strength despite recent setbacks.
• With a current market capitalization of approximately $1.96 billion and a trading volume of 30,136,821 shares, SRPT's valuation suggests it may be deeply oversold.

Sarepta Therapeutics, Inc. (NASDAQ:SRPT) is a biotechnology company focused on developing precision genetic medicines to treat rare diseases. The company is known for its work in the field of Duchenne muscular dystrophy (DMD) and other neuromuscular diseases. Sarepta's competitors include companies like Pfizer and Roche, which are also involved in developing treatments for similar conditions.

On June 15, 2025, Kostas Biliouris from BMO Capital set a price target of $70 for SRPT. At that time, the stock was priced at $36.18, suggesting a potential increase of about 93.48% to reach the target. However, recent events have significantly impacted the stock's performance. The stock has plunged over 47% following the second patient death related to its ELEVIDYS treatment, raising serious safety concerns and leading to the suspension of trials.

Despite these setbacks, Sarepta's current valuation is considered deeply oversold. The stock is now priced at $19.91, reflecting a decrease of 44.97% with a change of $16.27. For long-term investors, this may present an opportunity to invest at these lower levels. Although ELEVIDYS revenue has decreased sequentially, it still shows a remarkable 180% increase year-over-year, indicating potential for recovery.

Sarepta's overall product revenue has grown by 70%, showcasing the underlying strength of the business despite recent challenges. The company's market capitalization stands at approximately $1.96 billion, with a trading volume of 30,136,821 shares for the day. The stock has fluctuated between a low of $18.30 and a high of $21.55 today, with a 52-week high of $173.25 and a low of $18.30.

Sarepta Therapeutics, trading under the symbol NASDAQ:SRPT, is a biotechnology company focused on developing innovative genetic medicines to treat rare diseases. The company is well-known for its work on therapies for Duchenne muscular dystrophy (DMD), a severe genetic disorder. However, Sarepta faces competition from other biotech firms also working on gene therapies for similar conditions.

On June 15, 2025, BMO Capital downgraded Sarepta from an "Outperform" to a "Market Perform" rating, with the stock priced at $36.18. This downgrade coincided with significant challenges for the company. Sarepta's Elevidys gene therapy, aimed at treating DMD, has been linked to the death of a second patient, raising serious safety concerns. The tragic event has led to a suspension of Sarepta's full-year financial guidance, as reported by Angelica Peebles on CNBC Television.

The company's CEO has halted dosing and paused ongoing trials, highlighting the inherent risks in developing advanced therapies for complex conditions like DMD. This has cast doubt on the future of Sarepta's gene therapy program. The stock has seen a sharp decline, now trading at $20.29, a 43.92% drop from its previous value. The stock's fluctuation between $18.30 and $21.55 today reflects investor uncertainty. Sarepta's market capitalization is approximately $1.99 billion, with a high trading volume of 26.34 million shares, indicating significant market activity.

The recent patient death, attributed to liver failure, has overshadowed the potential of Elevidys, impacting its development and approval prospects. Sarepta's stock, which once reached a high of $173.25 over the past year, now faces a challenging path forward as it navigates these safety concerns and their implications for its gene therapy pipeline.

• RBC Capital maintains its "Outperform" rating for NASDAQ:SRPT, despite a significant stock price decline following a patient's death.
• The death, attributed to acute liver failure after receiving Elevidys, raises safety concerns, impacting the stock's performance.
• Despite the incident, Sarepta Therapeutics has treated over 800 individuals with Elevidys, marking this as the only reported case of liver failure.

Sarepta Therapeutics Inc (NASDAQ:SRPT) is a biotechnology company focused on developing precision genetic medicines to treat rare diseases. The company is known for its work on Duchenne muscular dystrophy (DMD), a severe type of muscular dystrophy. Sarepta's gene therapy, Elevidys, is the only approved treatment for DMD, making it a significant player in the biotech industry.

On March 18, 2025, RBC Capital maintained its "Outperform" rating for SRPT, with the stock trading at $79.85. However, the stock has since experienced a significant decline, dropping over 21% following the announcement of a patient's death after receiving Elevidys. This incident has raised concerns about the safety of the therapy, despite the company's assertion that the benefit-risk profile remains positive.

The patient who passed away suffered from acute liver failure, a known potential side effect of Elevidys and similar therapies. Sarepta acknowledged the severity of this case as unprecedented. The patient also had a recent cytomegalovirus (CMV) infection, which may have exacerbated the liver damage. Sarepta is actively investigating the incident and plans to update the prescribing information to reflect this event.

Analysts from Jefferies predict continued stock weakness due to the uncertainty surrounding the safety of Elevidys. They suggest that unless Sarepta can conclusively determine that the death was not related to the drug, the stock may continue to face pressure. The company has treated over 800 individuals with Elevidys, with this being the only reported case of liver failure.

Currently, SRPT is priced at $78.50, reflecting a decrease of 22.55% with a change of $22.85. The stock has fluctuated between a low of $75.06 and a high of $81.87 today. Over the past year, it reached a high of $173.25 and a low of $75.06. The company's market capitalization stands at approximately $7.62 billion, with a trading volume of 9,148,278 shares on the NASDAQ.

• RBC Capital maintains its "Outperform" rating for NASDAQ:SRPT, despite a significant stock price decline following a patient's death.
• The death, attributed to acute liver failure after receiving Elevidys, raises safety concerns, impacting the stock's performance.
• Despite the incident, Sarepta Therapeutics has treated over 800 individuals with Elevidys, marking this as the only reported case of liver failure.

Sarepta Therapeutics Inc (NASDAQ:SRPT) is a biotechnology company focused on developing precision genetic medicines to treat rare diseases. The company is known for its work on Duchenne muscular dystrophy (DMD), a severe type of muscular dystrophy. Sarepta's gene therapy, Elevidys, is the only approved treatment for DMD, making it a significant player in the biotech industry.

On March 18, 2025, RBC Capital maintained its "Outperform" rating for SRPT, with the stock trading at $79.85. However, the stock has since experienced a significant decline, dropping over 21% following the announcement of a patient's death after receiving Elevidys. This incident has raised concerns about the safety of the therapy, despite the company's assertion that the benefit-risk profile remains positive.

The patient who passed away suffered from acute liver failure, a known potential side effect of Elevidys and similar therapies. Sarepta acknowledged the severity of this case as unprecedented. The patient also had a recent cytomegalovirus (CMV) infection, which may have exacerbated the liver damage. Sarepta is actively investigating the incident and plans to update the prescribing information to reflect this event.

Analysts from Jefferies predict continued stock weakness due to the uncertainty surrounding the safety of Elevidys. They suggest that unless Sarepta can conclusively determine that the death was not related to the drug, the stock may continue to face pressure. The company has treated over 800 individuals with Elevidys, with this being the only reported case of liver failure.

Currently, SRPT is priced at $78.50, reflecting a decrease of 22.55% with a change of $22.85. The stock has fluctuated between a low of $75.06 and a high of $81.87 today. Over the past year, it reached a high of $173.25 and a low of $75.06. The company's market capitalization stands at approximately $7.62 billion, with a trading volume of 9,148,278 shares on the NASDAQ.

Sarepta Therapeutics (NASDAQ:SRPT) reported mixed second-quarter results, beating earnings expectations but missing revenue forecasts and offering a weaker-than-anticipated outlook for fiscal year 2025. This led to a 3% intra-day drop today.

The biotechnology company posted adjusted earnings per share of $0.44, significantly surpassing the Street estimate of -$0.13. However, revenue for the quarter was $362.9 million, falling short of the consensus forecast of $394.39 million, despite a 51% year-over-year increase.

Sarepta's gene therapy, ELEVIDYS, which received expanded FDA approval during the quarter, generated $121.7 million in net product revenue. The company’s PMO products contributed $238.8 million.

Looking forward, Sarepta provided revenue guidance for fiscal year 2025 in the range of $2.9 billion to $3.1 billion, which is below the analyst expectations of $3.241 billion. The midpoint of this guidance represents a 3.7% shortfall compared to the Street estimate.

Sarepta Therapeutics (NASDAQ:SRPT) reported mixed second-quarter results, beating earnings expectations but missing revenue forecasts and offering a weaker-than-anticipated outlook for fiscal year 2025. This led to a 3% intra-day drop today.

The biotechnology company posted adjusted earnings per share of $0.44, significantly surpassing the Street estimate of -$0.13. However, revenue for the quarter was $362.9 million, falling short of the consensus forecast of $394.39 million, despite a 51% year-over-year increase.

Sarepta's gene therapy, ELEVIDYS, which received expanded FDA approval during the quarter, generated $121.7 million in net product revenue. The company’s PMO products contributed $238.8 million.

Looking forward, Sarepta provided revenue guidance for fiscal year 2025 in the range of $2.9 billion to $3.1 billion, which is below the analyst expectations of $3.241 billion. The midpoint of this guidance represents a 3.7% shortfall compared to the Street estimate.