Sarepta Therapeutics Slumps After Second Gene Therapy Death: Analysts Downgrade Stock

Sarepta Therapeutics (NASDAQ:SRPT) faced intense market pressure on Monday after reporting a second death linked to its Duchenne muscular dystrophy gene therapy, Elevidys, in a non-ambulatory patient. Shares plunged nearly 35% in premarket trading, extending losses that began after the first fatality in March.

Analyst Downgrades Follow Tragic Development

Two major brokerages—BMO Capital Markets and Piper Sandler—downgraded the stock, citing rising uncertainty:

• BMO cut its rating to Market Perform, reducing its price target to $70, and warning of potential hits to Sarepta's 2025 revenue guidance and broader regulatory challenges.

• Piper Sandler lowered its rating to Neutral, slashing the price target to $36 from $55. The firm also reduced peak Elevidys sales expectations from $2.4 billion to $1.7 billion, citing growing hesitation among physicians and regulators.

Monitor Sarepta's long-term financial trajectory using Financial Growth API, which tracks revenue and net income expansion over time.

Clinical and Commercial Fallout

Sarepta confirmed that it has:

• Suspended shipments of Elevidys for non-ambulatory use.

• Paused dosing in its ENVISION trial.

• Proposed an enhanced immunosuppressive regimen (including sirolimus) and plans to seek FDA approval to resume treatment.

Despite the setback, Elevidys remains available for ambulatory patients, although analysts warn that confidence in its safety profile is now under review.

Historical Context and Share Performance

The latest fatality, like the previous one in March, was attributed to acute liver failure—a known risk associated with AAV-based gene therapies. While not unexpected from a scientific standpoint, the timing adds pressure on Sarepta's near-term outlook, especially given the stock's volatile performance year-to-date.

For a deeper look at Sarepta's earnings momentum, explore the Earnings Historical API, which details quarterly and annual earnings per share.

Investor Takeaway

Sarepta's future hinges on regulatory decisions and how quickly confidence in Elevidys can be rebuilt—particularly in the non-ambulatory setting. Until clarity emerges, the stock is likely to remain under scrutiny.