Sarepta Therapeutics, Inc. (NASDAQ: SRPT) saw a 19.53% increase in share price on Thursday, finishing at $21.97. Following the company’s announcement of a thorough reorganization and prioritization exercise meant to fortify its financial base and concentrate on high-impact therapeutic programs, the steep increase occurred.
This strategy is intended to maintain long-term sustainability and profitability while ensuring the business fulfills its financial commitments until 2027.
Focus on the Duchenne Portfolio and the siRNA Platform
Targeting short- and medium-term prospects with large potential returns, Sarepta’s new approach heavily emphasizes its small interfering RNA (siRNA) technology. The business reiterated its dedication to the four Duchenne muscular dystrophy medications it currently markets, including ELEVIDYS and three PMO-based therapies.
It is anticipated that these treatments will increase profitability and maintain funding for high-value initiatives that treat uncommon genetic illnesses.
Workforce Adjustment and Cost Savings
Sarepta is putting in place extensive cost-cutting initiatives that are expected to result in yearly savings of about $400 million in order to align operating expenses with strategic ambitions. Among these is cutting its average yearly non-GAAP R&D and SG&A spending to between $800 and $900 million starting in 2026.
Additionally, the proposal calls for a 36% employment reduction, which will impact around 500 workers and save $120 million a year by 2026. Additionally, pipeline reprioritization will save $300 million in non-personnel costs per year, with an additional $100 million expected through the end of 2025, net of severance and one-time charges of $32–$37 million.
Preserving Financial Flexibility and Fostering Innovation
Sarepta intends to enhance its cash flow and maintain access to its $600 million revolving credit facility in order to proactively manage its liabilities, including the repayment of its 2027 convertible note. While Sarepta plans to submit a Biologics License Application for SRP-9003 (LGMD 2E/R4) later this year, some gene therapy projects for LGMD will be halted.
The group also intends to look at strategic possibilities, such as partnerships, for non-priority programs. Sarepta emphasized that its objective of developing therapies that can transform the lives of individuals with rare genetic illnesses has not altered, even with the support of a more focused, efficient, and financially secure operational model.
