Sarepta Therapeutics saw its stock tumble as sales of its Duchenne muscular dystrophy gene therapy Elevidys continued to decline, even though the drug's quarterly revenue beat Wall Street expectations.
The company reported Elevidys sales, which came in above analyst consensus, but the persistent downward trajectory in quarterly revenue overshadowed the beat. The therapy, approved under an accelerated pathway, has faced commercial headwinds since launch.
Analysts now expect the investment narrative around Sarepta to pivot toward its preclinical and early-stage RNA-based programs. The shift in focus comes as Elevidys struggles to sustain the growth trajectory initially projected by the company and analysts.
A key risk is the uncertain clinical and regulatory path for Sarepta's RNA candidates, which have yet to demonstrate proof-of-concept in humans. The biotech's near-term revenue remains heavily tied to Elevidys, making the pipeline transition a high-stakes bet.
Broader market skepticism about gene therapy reimbursement and durability may also weigh on the sector, though Sarepta's RNA platform offers a differentiated approach that could rekindle investor interest if early data prove positive.