Sarepta Therapeutics’ Community Engagement and Its Impact on Long-Term Value

Corporate Social Responsibility (CSR) has become a critical differentiator in the biotech sector, where companies must balance innovation with ethical stewardship. Sarepta Therapeutics (NASDAQ: SRPT) has long positioned itself as a leader in rare disease treatments, but its recent challenges with gene therapy safety and regulatory scrutiny raise questions about whether its CSR initiatives can offset reputational damage. This analysis evaluates Sarepta’s community engagement strategies, their alignment with ESG principles, and their impact on long-term value creation, while comparing the company to peers like Biogen and Vertex Pharmaceuticals.

Sarepta’s CSR: A Double-Edged Sword

Sarepta’s Route 79, The Duchenne Scholarship Program, stands out as a hallmark of its CSR efforts. For the 2025-2026 academic year, the company awarded 25 scholarships—20 to individuals with Duchenne muscular dystrophy and 5 to their siblings—each valued up to $5,000. This initiative, now in its eighth year, has awarded over 150 scholarships since its inception, reflecting a commitment to holistic support for the Duchenne community [1]. The program’s independent selection process, managed by an anonymous committee of Duchenne advocates, underscores transparency and fairness [2].

However, Sarepta’s CSR narrative has been overshadowed by safety concerns surrounding its flagship gene therapy, Elevidys. Three patient deaths linked to acute liver failure prompted the FDA to demand a black box warning and a voluntary pause in U.S. shipments. These events triggered an 89% annual drop in Sarepta’s stock price and eroded investor confidence [3]. While the company has proposed mitigating risks through new immunosuppressive regimens, the damage to its regulatory reputation remains significant.

Peer Comparisons: Biogen and Vertex as Benchmarks

Biogen and Vertex Pharmaceuticals offer instructive contrasts. Biogen’s Alzheimer’s drug Aduhelm faced skepticism due to conflicting trial data, yet the company’s structured CSR reporting—such as its 76-page sustainability report with SASB indexing—helped maintain a degree of investor trust [4]. Vertex, meanwhile, leveraged its Trikafta approval for cystic fibrosis to achieve a stock surge, demonstrating how regulatory milestones and patient-centric innovation can bolster brand loyalty [5].

Sarepta’s scholarship program aligns with industry trends in stakeholder engagement, but its recent product safety issues highlight a critical gap: CSR must be paired with operational integrity. While Vertex and Biogen have navigated regulatory challenges with more stable reputations, Sarepta’s struggles with Elevidys underscore the fragility of CSR-driven goodwill when core business risks are not managed effectively.

The ESG-Value Link: Can Sarepta Rebuild?

Research indicates that ESG-aligned CSR initiatives can enhance investor confidence and market resilience [6]. For Sarepta, the key lies in demonstrating that its community programs are not just token gestures but part of a broader strategy to address systemic risks. The company’s restructuring—though cost-cutting—signals a pivot toward siRNA therapies, which may offer a safer, more sustainable path forward.

Yet, greenwashing remains a risk. If Sarepta’s CSR efforts are perceived as disconnected from its operational challenges, stakeholders may view them as insufficient. The recent expansion of Route 79 to include siblings—a recognition of Duchenne’s familial impact—shows nuance, but the company must now prove it can balance innovation with patient safety.

Conclusion: A Test of Resilience

Sarepta’s CSR initiatives, particularly Route 79, reflect a genuine commitment to the Duchenne community. However, the company’s long-term value will depend on its ability to reconcile these efforts with operational excellence. While peers like Vertex have leveraged regulatory success to build enduring trust, Sarepta must navigate a more precarious path—one where CSR can complement, but not substitute for, robust product safety and regulatory compliance. For investors, the question is whether Sarepta can transform its community engagement into a sustainable competitive advantage amid ongoing challenges.

Source:
[1] Sarepta Therapeutics Announces Recipients of Route 79, The Duchenne Scholarship Program, for the 2025-2026 Academic Year [https://www.businesswire.com/news/home/20250905233316/en/Sarepta-Therapeutics-Announces-Recipients-of-Route-79-The-Duchenne-Scholarship-Program-for-the-2025-2026-Academic-Year]
[2] Sarepta Therapeutics Announces Recipients of Route 79, The Duchenne Scholarship Program for the 2025-2026 Academic Year [https://www.gurufocus.com/news/3096369/sarepta-therapeutics-announces-recipients-of-route-79-the-duchenne-scholarship-program-for-the-20252026-academic-year-srpt-stock-news]
[3] Sarepta shares fall 7% after gene therapy maker pauses Elevidys shipments in US [https://m.economictimes.com/markets/stocks/news/sarepta-shares-fall-7-after-gene-therapy-maker-pauses-elevidys-shipments-in-us/articleshow/122839444.cms]
[4] Trends in Biotechnology Companies Sustainability [https://www.nossadata.com/blog/biotechnology-sustainability-disclosure]
[5] Healing the World: Pharmaceutical Stocks on TSX Venture Exchange [https://fastercapital.com/content/Healing-the-World--Pharmaceutical-Stocks-on-TSX-Venture-Exchange.html]
[6] Corporate Environmental, Social, and Governance [https://www.mdpi.com/2071-1050/17/3/1286]