Sarepta Shares Surge 10.46% on Record Q2 Revenue Despite Safety Scrutiny Trading Volume Ranks 407th

Sarepta Therapeutics (SRPT) surged 10.46% on August 7, 2025, with a trading volume of $0.29 billion, ranking 407th in market activity. The biotech firm reported Q2 revenue of $611 million, a 68% increase year-over-year, driven by a $63.5 million milestone payment from Roche tied to Elevidys’ approval in Japan. Despite this financial outperformance, the stock remains under pressure from ongoing safety concerns linked to its gene therapies, including three patient deaths tied to acute liver failure. The FDA recently allowed resumption of Elevidys shipments to ambulatory patients, but analysts caution near-term sales volatility and hesitancy from patients and physicians.

Elevidys, Sarepta’s flagship gene therapy for Duchenne muscular dystrophy, contributed $282 million in Q2 revenue, up 132% year-over-year but down 25% quarter-over-quarter. The therapy’s market performance has been overshadowed by safety scrutiny, prompting the FDA to halt U.S. shipments earlier this year. While shipments have resumed, William Blair analysts note the recent headlines may dampen commercial interest until updated revenue guidance is provided. Jefferies estimates Q3 Elevidys sales could drop by half to $130 million before stabilizing.

Management suspended Elevidys’ non-ambulatory dosing following the deaths and is developing a revised immunosuppression protocol for safer administration. Sarepta also announced a restructuring plan to cut $400 million annually by 2026, including layoffs of 36% of its workforce and a shift in focus to siRNA programs acquired from Arrowhead Pharmaceuticals. These strategic moves aim to mitigate risks from gene therapy safety issues and redirect resources to higher-potential pipelines.

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