Sarepta: Despite Restructuring, Downgrading To Sell After Latest Developments

Summary

• I am downgrading Sarepta Therapeutics to a Sell due to unresolved ELEVIDYS label issues and a new black box warning impacting future revenues.
• A third patient death is tied to the AAVrh.74 vector raises significant safety concerns across Sarepta's gene therapy pipeline, increasing regulatory and commercial uncertainty.
• Recent restructuring cuts costs but severely narrows the pipeline, removing most LGMD gene therapy candidates and increasing reliance on unproven RNAi candidates.
• The restructuring enacted by Sarepta is expected to save up to $400 million in annual costs, potentially allowing SRPT to meet 2027 debt obligations.