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Sarepta Therapeutics (SRPT)
NASDAQ:SRPT
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Sarepta Therapeutics (SRPT) AI Stock Analysis

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SRPT

Sarepta Therapeutics

(NASDAQ:SRPT)

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Neutral 52 (OpenAI - 4o)
Rating:52Neutral
Price Target:
$22.00
▲(0.50% Upside)
Sarepta Therapeutics' overall stock score reflects strong revenue growth and strategic restructuring efforts. However, ongoing profitability and cash flow issues, coupled with valuation concerns, weigh heavily on the score. The positive momentum in technical analysis and strategic focus from the earnings call provide some optimism for future performance.
Positive Factors
Revenue Growth
Strong revenue from ELEVIDYS indicates successful market penetration and product acceptance, supporting long-term revenue growth.
Strategic Restructuring
Cost reduction plans enhance financial stability and operational efficiency, positioning the company for sustainable growth.
Pipeline Focus
A targeted pipeline on high-impact programs ensures strategic resource allocation and potential for breakthrough therapies.
Negative Factors
Profitability Challenges
Persistent profitability issues can hinder long-term financial health and limit reinvestment in growth opportunities.
Workforce Reduction
Significant workforce reduction may impact operational capabilities and employee morale, affecting long-term productivity.
ELEVIDYS Adoption Hesitancy
Safety concerns and hesitancy in ELEVIDYS adoption could limit market potential and revenue growth from this key product.

Sarepta Therapeutics (SRPT) vs. SPDR S&P 500 ETF (SPY)

Sarepta Therapeutics Business Overview & Revenue Model

Company DescriptionSarepta Therapeutics (SRPT) is a biopharmaceutical company focused on developing innovative therapies for rare diseases, primarily targeting genetic disorders such as Duchenne muscular dystrophy (DMD). The company operates in the biotechnology sector and is known for its pioneering work in gene therapy and RNA-targeted medicines. Sarepta's lead product candidates include exon-skipping therapies and gene replacement therapies designed to address the underlying causes of DMD and other genetic conditions.
How the Company Makes MoneySarepta Therapeutics generates revenue primarily through the commercialization of its therapeutic products, including its lead drug, Exondys 51, which is used to treat DMD. The company earns money from product sales, royalties, and milestone payments associated with its collaborations and partnerships with other pharmaceutical companies. Additionally, Sarepta has engaged in licensing agreements that provide upfront payments and potential future royalties based on sales of partnered products. The company also benefits from government grants and research funding aimed at advancing its clinical programs.

Sarepta Therapeutics Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant strategic restructuring, cost-saving measures, and a focused pipeline to strengthen Sarepta's financial position and future growth. However, challenges such as workforce reduction, hesitancy in ELEVIDYS adoption, and suspension of nonambulatory ELEVIDYS shipments present significant hurdles.
Q2-2025 Updates
Positive Updates
ELEVIDYS Revenue Contribution
ELEVIDYS generated $282 million in revenue in Q2 2025, contributing significantly to the total net product revenue.
Positive Cash Flow and Financial Position
Ended the quarter with $850 million in cash and equivalents, an increase of $203 million over Q1, ensuring financial flexibility.
Cost Reduction and Strategic Restructuring
Plans to reduce ongoing spending by about $900 million through 2027, with an expected $400 million annual cost savings starting in 2026.
Pipeline Focus and Expansion
Focused pipeline on high-impact programs like FSHD, DM1, SCA2, and Huntington's disease, ensuring funding for these developments.
ELEVIDYS Label Update
Agreed with FDA to include a black box warning for ELEVIDYS, which resolves material issues for the ambulant portion of the label.
Negative Updates
Reduction in Workforce
A reduction in force by about 36% of the workforce, approximately 500 employees, was announced as part of the restructuring.
ELEVIDYS Nonambulatory Patient Suspension
Voluntary suspension of shipments for nonambulatory ELEVIDYS patients due to safety concerns, pending further study and FDA dialogue.
Significant Hesitancy in ELEVIDYS Adoption
Noted hesitancy and canceled appointments for ELEVIDYS following two acute liver failure events in nonambulatory patients.
Pausing of Limb-Girdle Programs
Decision to pause most of the limb-girdle pipeline due to financial constraints, seeking alternative approaches like partnerships.
Company Guidance
During the call, Sarepta provided detailed guidance on its strategic restructuring and financial outlook. The company plans to reduce costs by $900 million through 2027 while maintaining profitability and a cash flow-positive status, ensuring it can address its financial obligations, including the retirement of its 2027 convertible note. Sarepta's strategy focuses on supporting its four approved therapies, including the gene therapy ELEVIDYS, and advancing a targeted pipeline of high-impact development programs for rare diseases. The company aims to achieve annual revenues of $500 million from ELEVIDYS and $900 million from its PMO franchise, totaling over $1.4 billion from its Duchenne franchise. Sarepta also plans to reduce its workforce by approximately 36%, translating to about 500 employees, to align resources with its refocused pipeline. The company ended the quarter with $850 million in cash and cash equivalents, reflecting a $203 million increase over the previous quarter.

Sarepta Therapeutics Financial Statement Overview

Summary
Sarepta Therapeutics shows strong revenue growth but faces significant profitability and cash flow challenges. The company has improved its debt-to-equity ratio, yet persistent losses and negative cash flow growth highlight the need for strategic improvements.
Income Statement
45
Neutral
Sarepta Therapeutics has shown a positive revenue growth rate of 11.11% TTM, indicating a strong upward trajectory in sales. However, the company is struggling with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin remains robust at 78.85% TTM, but the negative net profit margin of -2.34% TTM highlights ongoing challenges in cost management and operational efficiency.
Balance Sheet
50
Neutral
The company's debt-to-equity ratio has improved to 0.997 TTM, indicating a more balanced capital structure compared to previous years. However, the return on equity remains negative at -4.42% TTM, reflecting ongoing losses. The equity ratio is stable, suggesting a reasonable proportion of assets financed by equity, but the high leverage in past years poses a risk.
Cash Flow
40
Negative
Sarepta Therapeutics faces significant challenges in cash flow management, with a negative free cash flow growth rate of -35.78% TTM. The operating cash flow to net income ratio is also negative, indicating difficulties in converting earnings into cash. Despite this, the free cash flow to net income ratio is positive, suggesting some ability to cover net losses with free cash flow.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.48B1.90B1.24B933.01M701.89M540.10M
Gross Profit1.96B1.58B1.09B793.02M604.84M476.72M
EBITDA43.97M333.06M-439.20M-582.12M-306.08M-453.38M
Net Income-57.96M235.24M-535.98M-703.49M-418.78M-554.13M
Balance Sheet
Total Assets3.68B3.96B3.26B3.13B3.15B2.98B
Cash, Cash Equivalents and Short-Term Investments800.14M1.35B1.68B1.99B2.12B1.94B
Total Debt1.35B1.34B1.40B1.62B1.14B1.07B
Total Liabilities2.32B2.44B2.41B2.74B2.22B2.22B
Stockholders Equity1.36B1.53B859.34M384.95M928.01M761.76M
Cash Flow
Free Cash Flow-441.55M-342.74M-588.34M-356.17M-481.66M25.26M
Operating Cash Flow-300.75M-205.79M-500.99M-325.35M-443.17M107.47M
Investing Cash Flow376.33M755.56M-165.80M-1.05B495.41M-121.72M
Financing Cash Flow51.40M124.81M125.00M232.51M561.57M682.32M

Sarepta Therapeutics Technical Analysis

Technical Analysis Sentiment
Negative
Last Price21.89
Price Trends
50DMA
19.92
Positive
100DMA
20.63
Positive
200DMA
50.53
Negative
Market Momentum
MACD
0.92
Positive
RSI
53.35
Neutral
STOCH
53.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SRPT, the sentiment is Negative. The current price of 21.89 is below the 20-day moving average (MA) of 21.90, above the 50-day MA of 19.92, and below the 200-day MA of 50.53, indicating a neutral trend. The MACD of 0.92 indicates Positive momentum. The RSI at 53.35 is Neutral, neither overbought nor oversold. The STOCH value of 53.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SRPT.

Sarepta Therapeutics Risk Analysis

Sarepta Therapeutics disclosed 63 risk factors in its most recent earnings report. Sarepta Therapeutics reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Sarepta Therapeutics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
54
Neutral
$2.47B-57.33%99.50%65.91%
53
Neutral
$2.42B-18.96%191.53%5.09%
52
Neutral
$2.20B-28.86-4.76%64.89%-221.56%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
48
Neutral
$1.49B-41.3745.85%76.36%
43
Neutral
$2.38B-61.32%-7.71%
37
Underperform
$2.07B-6.12-107.55%2.25%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SRPT
Sarepta Therapeutics
21.89
-109.25
-83.31%
BCRX
BioCryst
7.19
-0.76
-9.56%
MESO
Mesoblast
17.10
8.52
99.30%
COGT
Cogent Biosciences
14.84
2.87
23.98%
ARQT
Arcutis Biotherapeutics
20.08
11.33
129.49%
DYN
Dyne Therapeutics
16.49
-14.24
-46.34%

Sarepta Therapeutics Corporate Events

Sarepta Therapeutics Restructures Amid ELEVIDYS Challenges
Sep 2, 2025

Sarepta Therapeutics Inc. recently held its earnings call, revealing a mixed sentiment characterized by strategic restructuring and cost-saving measures aimed at bolstering the company’s financial health and future growth. Despite these positive steps, challenges such as workforce reductions, hesitancy in the adoption of ELEVIDYS, and the suspension of nonambulatory ELEVIDYS shipments pose significant hurdles for the company.

Business Operations and StrategyPrivate Placements and Financing
Sarepta Therapeutics Completes Convertible Notes Exchange
Neutral
Aug 29, 2025

On August 20, 2025, Sarepta Therapeutics entered into exchange agreements with holders of its 1.25% Convertible Senior Notes due 2027, exchanging $700 million of these notes for new 4.875% Convertible Senior Notes due 2030, common stock, and cash. This strategic financial move, completed on August 28, 2025, aims to manage debt maturity and optimize capital structure, potentially impacting the company’s financial flexibility and market positioning.

The most recent analyst rating on (SRPT) stock is a Sell with a $12.00 price target. To see the full list of analyst forecasts on Sarepta Therapeutics stock, see the SRPT Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
Sarepta Therapeutics Restructures Debt with New Convertible Notes
Neutral
Aug 21, 2025

On August 20, 2025, Sarepta Therapeutics entered into exchange agreements with holders of its 1.25% Convertible Senior Notes due 2027, exchanging approximately $700 million of these notes for new 4.875% Convertible Senior Notes due 2030, shares of common stock, and cash. Additionally, the company engaged in a private placement transaction with J. Wood Capital Advisors LLC for $20 million in common stock, with the issuance of these securities relying on exemptions from registration under the Securities Act. These strategic financial maneuvers are expected to impact the company’s capital structure and provide flexibility in managing its debt obligations.

The most recent analyst rating on (SRPT) stock is a Hold with a $20.50 price target. To see the full list of analyst forecasts on Sarepta Therapeutics stock, see the SRPT Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
Sarepta Therapeutics Announces Strategic Restructuring Plan
Neutral
Aug 13, 2025

Sarepta Therapeutics announced a strategic restructuring and pipeline prioritization, resulting in the end of Bilal Arif’s employment as Executive Vice President, Chief Technical Operations Officer, effective September 16, 2025. Arif will transition to a Special Advisor role until his employment ends and will continue as a consultant through December 31, 2025. The company has agreed to provide Arif with a severance package and consulting fees, while his equity awards will continue to vest during his consultancy. This move reflects Sarepta’s ongoing efforts to optimize its operations and focus on its core strategic objectives.

The most recent analyst rating on (SRPT) stock is a Hold with a $15.00 price target. To see the full list of analyst forecasts on Sarepta Therapeutics stock, see the SRPT Stock Forecast page.

Sarepta Therapeutics Reports Strong Revenue Growth Amid Strategic Investments
Aug 7, 2025

Sarepta Therapeutics, Inc. is a commercial-stage biopharmaceutical company specializing in RNA-targeted therapeutics and gene therapy for rare diseases, particularly Duchenne muscular dystrophy. In its latest earnings report, Sarepta Therapeutics reported a significant increase in total revenues for the second quarter of 2025, reaching $611.1 million compared to $362.9 million in the same period last year. This growth was primarily driven by the strong performance of its ELEVIDYS gene therapy product, which saw a substantial rise in sales. Despite the revenue growth, the company reported a net loss of $250.6 million for the first half of 2025, attributed to increased research and development expenses and strategic investments, including a significant upfront payment to Arrowhead Pharmaceuticals. Looking ahead, Sarepta’s management remains optimistic about its financial health, supported by its cash reserves and strategic collaborations, as it continues to focus on expanding its product pipeline and addressing safety concerns related to ELEVIDYS.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 24, 2025