SRPT Stock Soars on Unveiling New Restructuring Plan, Pipeline Pivots
SRPT to Cut Costs & Focus on siRNA Pipeline
Sarepta's restructuring plan aims to save about $400 million annually starting in 2026. To achieve this target, the company has decided to lay off 36% of its workforce — around 500 employees — which is expected to save nearly $120 million per year. SRPT plans to generate around $300 million in annual savings by reprioritizing its pipeline.
Concerning the pipeline, Sarepta has decided to pause development of most of its gene-therapy candidates for limb-girdle muscular dystrophy (LGMD). The company, however, intends to move forward with SRP-9003, its gene therapy candidate for patients with LGMD type 2E/R4 (LGMD2E/R4, or beta sarcoglycanopathy). A regulatory filing with the FDA remains on track for this therapy before year-end.
SRPT has now shifted focus to its siRNA programs, which were acquired as part of a multi-billion-dollar licensing deal with Arrowhead Pharmaceuticals ARWR. After closing the Arrowhead deal in February, Sarepta acquired exclusive rights to four clinical-stage siRNA programs, each being evaluated in separate phase I/II studies. These include SRP-1001 in facioscapulohumeral muscular dystrophy (FSHD), SRP-1002 in idiopathic pulmonary fibrosis (IPF), SRP-1003 in myotonic dystrophy type 1 (DM1) and SRP-1004 in spinocerebellar ataxia 2 (SCA2).
Initial data from studies on SRP-1001 and SRP-1003 are expected before year-end. Sarepta also acquired three preclinical programs from Arrowhead, including SRP-1005 (for Huntington's disease), which is set to enter clinical development early next year.
While Sarepta expects to incur severance and one-time charges of $32 million to $37 million, it still anticipates saving over $100 million in annual costs this year. For full-year 2026, Sarepta expects the combined adjusted R&D and SG&A expenses to be in the range of $800-$900 million.
SRPT Stock Performance
Sarepta's motivation behind these moves is clear — this company-wide reorganization aims to address the setback stemming from safety concerns around Elevidys, its one-shot gene therapy for Duchenne muscular dystrophy (DMD). The latest surge in stock price reflects investor optimism regarding the restructuring plan's ability to stabilize the company's financial profile and growth trajectory.
Year to date, Sarepta's shares have plunged 85% compared with the industry's 2% decline.
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Sarepta to Update Elevidys Label With Black Box Warning
Investor sentiment toward the stock has worsened significantly after two patient deaths were linked to Elevidys, both caused by acute liver failure (ALF) in non-ambulatory DMD patients. While Sarepta has already suspended both clinical and commercial Elevidys dosing for non-ambulatory patients, the therapy has been mandated by the FDA to carry a black box warning for ALF and acute liver injury.
To address this safety issue, Sarepta is working to create a new protocol with an enhanced immunosuppression regimen to make Elevidys administration safer for non-ambulatory DMD patients. The company plans to submit these findings to the FDA in hopes of resuming dosing in the non-ambulation population.
Sarepta developed Elevidys in partnership with pharma giant Roche RHHBY. In 2019, SRPT and Roche entered into a licensing agreement to develop Elevidys. Per the agreement, Roche has exclusive rights to launch and market the therapy in non-U.S. markets.
Sarepta Provides Q2 Preliminary Numbers
Alongside the restructuring plan, Sarepta also issued preliminary/unaudited figures for the second quarter of 2025. The company reported total net product revenues of $513 million, which beat both the Zacks Consensus Estimate of $506 million and our model estimate of $507 million.
The unaudited revenue numbers include $282 million from Elevidys. The Zacks Consensus Estimate and our model estimate for Elevidys' sales are pegged at $274 million and $280 million, respectively.
Sarepta also reported preliminary combined adjusted R&D and SG&A expenses of around $294 million for the quarter. As of the end of June 2025, unaudited cash and short-term investments totaled approximately $850 million.
The company plans to report full second-quarter results early next month.
Sarepta Therapeutics, Inc. Price
Sarepta Therapeutics, Inc. price | Sarepta Therapeutics, Inc. Quote
SRPT's Zacks Rank
Sarepta currently carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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