Sarepta Therapeutics Stock (NASDAQ: SRPT) Swinging Wildly: What is The Latest

Sarepta Therapeutics stock price (NASDAQ: SRPT) is swinging wildly amidst a series of significant announcements.

The company's recent restructuring plan, coupled with a concerning black box warning for its gene therapy Elevidys, has ignited both investor anxieties and speculative hopes. As Sarepta slashes its workforce and pivots its research focus, the market is grappling with the potential implications for the company's future, with some analysts even suggesting a potential acquisition.

SRPT's stock closed at $21.97 yesterday, representing an impressive 19.53% gain for the day. However, pre-market trading shows a sharp reversal, with the stock down 16.34% to $18.38, indicating potential volatility ahead of the market open. While representing a significant increase from the recent low of $16.88, it remains a far cry from the 52-week high of $150.48, and the kind of whipsaw that can be hard to manage.

This week, the company unveiled a restructuring initiative designed to achieve long-term financial stability, including a 36% workforce reduction, affecting roughly 500 employees.

The projected annual cost savings of $400 million by 2026, stemming from both personnel cuts ($120 million) and pipeline reprioritization ($300 million), initially buoyed investor sentiment. This optimism stems from the company's stated goal of meeting its 2027 financial obligations, particularly a looming $1 billion in senior notes.

However, the euphoria is tempered by the shadow cast by Elevidys. The FDA's request for a black box warning, triggered by two patient deaths linked to acute liver failure, introduces a significant element of uncertainty. While the warning specifically addresses the risks of acute liver injury and failure and Sarepta has paused shipments to non-ambulatory patients while enhanced safety protocols are developed, the long-term impact on Elevidys' market potential remains a key concern.

The preliminary Q2 2025 results show a total net product revenue of $513 million, with $282 million from Elevidys and $231 million from RNA-based treatments. The company has suspended its forecasts for the time being as it navigates the impact of the Elevidys setback and implements cost-saving measures.

Adding another layer to the story is the strategic shift in Sarepta's research and development pipeline. The company is placing increased emphasis on small interfering RNA (siRNA) programs, while pausing most gene therapy programs for limb-girdle muscular dystrophy (LGMD). This move signifies a calculated bet on the potential of siRNA-based treatments for conditions such as facioscapulohumeral muscular dystrophy (FSHD), myotonic dystrophy type 1, and Huntington's disease.

While Sarepta intends to submit a Biologics License Application for SRP-9003, a gene therapy candidate for LGMD type 2E/R4, in the second half of 2025, the overall pivot underscores the company's acknowledgement of the challenges and risks associated with its gene therapy platform.

The confluence of these factors has inevitably led to speculation about a potential acquisition of Sarepta. A larger pharmaceutical firm seeking to bolster its position in genetic medicine might find Sarepta's pipeline, particularly its siRNA assets, an attractive addition. However, the uncertainty surrounding Elevidys and the ongoing restructuring could also deter potential suitors.

Ultimately, Sarepta's future hinges on its ability to successfully navigate the challenges posed by the Elevidys safety concerns, execute its restructuring plan effectively, and advance its siRNA pipeline.