Sarepta Therapeutics' stock experienced a significant pre-market plunge of 6.86%, extending losses from the previous after-hours session. The sharp decline follows the release of the company's first-quarter 2026 financial results, which revealed a 2% year-over-year drop in quarterly revenue to $730.8 million.

The revenue shortfall was primarily driven by a steep 73% decrease in sales of its flagship gene therapy, ELEVIDYS, which fell to $101.97 million. Investors reacted negatively to the significant weakness in the company's core product, attributed to an updated product label that restricts ELEVIDYS treatment to ambulatory patients, thereby reducing its total addressable market. This follows safety events in the previous year and a regulatory crackdown that led to temporary shipment pauses.

Despite reporting a positive swing to net income of $331 million and beating earnings expectations, the market focused on the disappointing revenue performance and the sharp decline in ELEVIDYS sales. The company reiterated its full-year 2026 net product revenue guidance of $1.2-$1.4 billion, but traders remained concerned about the near-term challenges facing its key therapeutic product.