Sarepta Surges 5.8% on FDA Green Light Despite Legal Storms, Top 500 by Volume Strategy Outperforms 166%

On July 30, 2025, Sarepta Therapeutics (SRPT) saw a 5.81% gain in share price, closing at $18.38, despite a 39.57% decline in trading volume to $0.7 billion. The stock’s performance followed a mixed landscape of regulatory and legal developments. Earlier in the week, the FDA lifted a clinical hold on its Duchenne muscular dystrophy gene therapy Elevidys for ambulatory patients, citing no treatment-related cause for a recent patient death. This decision spurred analyst upgrades and renewed optimism among investors.

However, Sarepta remains under legal scrutiny. A securities class-action lawsuit alleges the company misled investors by downplaying safety risks and adverse events tied to Elevidys and its experimental therapies. Three patient deaths linked to its gene therapies—Elevidys, SRP-9004, and another investigational treatment—triggered regulatory halts and heightened legal exposure. The FDA’s ongoing safety review and halted trials for non-ambulatory patients continue to cast uncertainty over the company’s growth prospects and revenue potential.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day delivered a 166.71% return from 2022 to July 30, 2025, outperforming the benchmark by 137.53%. This approach achieved a compound annual growth rate of 31.89%, underscoring the potential of high-volume stocks to generate strong risk-adjusted returns through liquidity and market sentiment.