Shares of Sarepta Therapeutics SRPT plunged more than 20% yesterday after the company reported the death of a patient after treatment with Elevidys, its one-shot gene therapy for Duchenne muscular dystrophy (DMD).

Per the company, this patient died of acute liver failure. While acute liver injury is a known risk of Elevidys, this is the first time a death has been reported of anyone taking the therapy. However, Sarepta stated that the patient also had a recent CMV infection, which may have contributed to the outcome, as CMV can damage the liver.

Sarepta has reported the event to health authorities, clinical study investigators and prescribing physicians. It intends to update Elevidys’ prescribing information accordingly. Despite the incident, the company maintains that the benefit-risk profile of its gene therapy remains positive, with over 800 patients treated in clinical studies or commercial use.

SRPT Stock Performance

The plunge in Sarepta’s stock was likely due to concerns that the event could make doctors more hesitant to prescribe Elevidys or even slow overall market adoption. Elevidys accounted for nearly 60% of the company’s total revenues in the fourth quarter of 2024. The company anticipates net product revenues in the range of $2.9-$3.1 billion for this full year, two-thirds of which are expected to come from the gene therapy’s sales. Any setback to Elevidys’ uptake could be detrimental to SRPT’s growth trajectory and stock performance.

Year to date, Sarepta’s shares have plunged nearly 40% against the industry’s 6% growth.

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Sarepta’s Strong Commercial DMD Portfolio

Sarepta’s portfolio consists of four approved therapies, all targeting DMD indications.

Currently, Elevidys is the first and only one-shot gene therapy for DMD in the United States. Since its commercial launch in June 2023, the gene therapy has demonstrated blockbuster potential. Sarepta added about $821 million from Elevidys sales in 2024 compared with $200 million in the year-ago period.

Elevidys has been developed by Sarepta in partnership with pharma giant Roche RHHBY. SRPT and RHHBY entered into a licensing agreement in 2019 to develop Elevidys. Per the agreement, Roche has exclusive rights to launch and market the therapy in ex-U.S. markets.

Apart from Elevidys, Sarepta has three other therapies in its commercial portfolio targeting the DMD patient population. Exondys 51 is the first approved disease-modifying therapy for DMD in the United States as well as the company’s first product to receive marketing approval. Exondys 51 recorded impressive sales growth in the past few quarters despite the COVID-19 pandemic. Vyondys 53 and Amondys 45 have also seen strong demand since their launch. Per management, these three drugs have the potential to address nearly a third of all patients with DMD in the United States.

SRPT’s Zacks Rank

Sarepta currently carries a Zacks Rank #3 (Hold).

Sarepta Therapeutics, Inc. Price

Sarepta Therapeutics, Inc. price | Sarepta Therapeutics, Inc. Quote

Key Picks Among Biotech Stocks

Some better-ranked stocks from the sector are ANI Pharmaceuticals ANIP and CytomX Therapeutics CTMX, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the past 60 days, estimates for ANI Pharmaceuticals’ 2025 earnings per share (EPS) have risen from $5.54 to $6.35. EPS estimates for 2026 have increased from $6.75 to $7.21 during the same period. Year to date, shares of ANIP have risen 16%.

ANIP’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 17.32%.

In the past 60 days, estimates for CytomX Therapeutics’ 2025 EPS have improved from a loss of 31 cents to earnings of 25 cents. During the same timeframe, estimates for loss per share for 2026 have narrowed from 65 cents to 31 cents. Year to date, shares of CytomX have lost 41%.

CTMX’s earnings beat estimates in three of the trailing four quarters and missed the mark once, delivering an average surprise of 180.70%.

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