Sarepta Therapeutics Stock Sinks On Gloomy Forecast, Analysts Expect Demand To Pick Up

Benzinga
08 May

Sarepta Therapeutics Inc. (NASDAQ:SRPT) reported on Tuesday that the first-quarter 2025 loss of $3.42 per share was missing the analyst consensus estimate of losses of 95 cents.

Quarterly revenue came in at $744.86 million, beating the consensus estimate of $683.36 million.

According to Sarepta CEO Doug Ingram, the company also faced headwinds in the quarter.

“While we are taking a variety of actions to address and resolve these challenges, we have adjusted our guidance for 2025 to $2.3 billion to $2.6 billion,” Ingram said. “The broader biotech market has also faced significant pressure in the first quarter of 2025. Fortunately, as an organization with four life-changing therapies, significant revenue, and a deep pipeline, Sarepta is well-positioned to navigate these chaotic times.”

Also Read: Sarepta/Roche Suspend Elevidys Gene Therapy Trials In Europe After Patient Death

Guidance: Sarepta revised its 2025 total net product revenues guidance to $2.3-$2.6 billion from $2.9-$3.1 billion.

William Blair writes that the revised guidance primarily relates to delayed Elevidys turnaround times.

The time from starting treatment paperwork to actual infusion takes about 1 to 1.5 months longer than expected. This delay is mostly due to stricter screening steps added to protect patients in the larger treatment group, analyst Sami Corwin says. Although the company is trying to speed things up and reduce delays, it expects these early-year trends to continue throughout the rest of the year.

“We view the miss in total net product and Elevidys revenue as unfortunate and disappointing given the macroeconomic overhangs that have already caused the stock to come under pressure,” William Blair writes.

The analyst adds that management believes the impact on Elevidys's revenue will be temporary, and expects demand to pick up in the second half of the year, starting in the summer.

  • William Blair maintains the Outperform rating.
  • Guggenheim maintains Sarepta with a Buy, lowering the price target from $112 to $98.
  • Piper Sandler keeps the Overweight rating for Sarepta, lowering the price target from $110 to $70.
  • Oppenheimer maintains Sarepta with an Outperform, lowering the price target from $184 to $123.
  • Cantor Fitzgerald reaffirms the company’s Overweight rating and lowers the price target from $163 to $81.
  • HC Wainwright maintains Sarepta with a Neutral, lowering the price target from $75 to $40.
  • Morgan Stanley maintains Sarepta with an Overweight, lowering the price target from $182 to $113.
  • Needham maintains Sarepta with a Buy and lowers the price target from $183 to $125.

Price Action: Sarepta Therapeutics stock is down 19.4% at $37.67 at last check Wednesday.

Read Next:

  • GEO Missed Q1 Targets On Rising Costs And Debt, Guides Q2 Below Street Estimates

Image: Shutterstock

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