Sarepta Plunges 15.79% on Restructuring Plan

On July 18, 2025, Sarepta's stock experienced a significant drop of 15.79% in pre-market trading, marking a notable shift in investor sentiment.

Sarepta Therapeutics has announced a major restructuring plan aimed at reducing costs and refocusing its pipeline. The company is shifting its emphasis to siRNA technology and reprioritizing its development projects. This strategic move has led to a significant reduction in its workforce, with plans to cut 36% of its employees. The restructuring is expected to save the company $400 million annually.

Analysts have responded to the restructuring plan with mixed reactions. Oppenheimer lowered its price target for Sarepta from $123 to $45, citing uncertainty surrounding the company's future. Similarly, RBC Capital adjusted its price target to $23, down from $25, while maintaining a Sector Perform rating. JPMorgan also lowered its price target to $28 from $30, pointing to a "valuation disconnect."

Despite the cost-saving measures and strategic shifts, some analysts remain optimistic about Sarepta's potential. The company's pipeline and recent FDA surprises have positioned it as a unique investment opportunity. The restructuring plan, while challenging, is seen as a necessary step to ensure long-term sustainability and growth.