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SRPT posted Q2 EPS of $2.02 and $611.1M in revenue, both beating consensus estimates.
Earnings surge was driven by Elevidys sales and a $63.5M milestone payment from Roche.
FDA clearance led to Elevidys shipment resumption after prior patient deaths halted deliveries.
Sarepta Therapeutics, Inc. (SRPT - Free Report) reported second-quarter 2025 adjusted EPS of $2.02, which beat the Zacks Consensus Estimate of $1.11. This beat was mainly due to higher-than-expected collaboration revenues coupled with lower operating expenses incurred during the quarter. In the year-ago period, the company posted an adjusted EPS of 43 cents.
The adjusted figures exclude depreciation and amortization costs, stock-based compensation expenses and gains on strategic investments. Including these items, EPS during the quarter was $1.89, compared to 7 cents in the year-ago period.
Sarepta recorded total revenues of $611.1 million, up 68% year over year. The upside was driven by sales of Elevidys, its one-shot gene therapy for Duchenne muscular dystrophy (DMD). The reported figure beat the Zacks Consensus Estimate of $529.5 million.
More on SRPT’s Earnings
Sarepta’s commercial portfolio includes three approved RNA-based PMO therapies — Exondys 51, Vyondys 53 and Amondys 45 — and Elevidys, all targeting DMD indications.
Product revenues rose 42% year over year to $513.1 million, driven by growth in Elevidys sales during the quarter. This figure, also reported by Sarepta last month as part of its preliminary results, beat both the Zacks Consensus Estimate and our model estimates of $507 million each.
The company generated $231.3 million from the product sales of its three PMO therapies, down 3% year over year. The figure beat the Zacks Consensus Estimate of $228.3 million and our model estimate of $227.0 million.
Sarepta generated $281.9 million from Elevidys sales, up 132% year over year. Like product sales, this figure was also reported by the company in its preliminary results and also beat both the Zacks Consensus Estimate of $277.9 million and our model estimate of $280.0 million.
SRPT recorded approximately $98.0 million in collaboration and other revenues associated with the commercial Elevidys supply to Roche (RHHBY - Free Report) . This number included a $63.5 million milestone payment received from RHHBY for Elevidys approval in Japan and contract manufacturing revenues worth $27.0 million. Also included in this broader line item is the $5.1 million recorded by the company as royalty revenues from Elevidys sales by Roche in non-U.S. territories. In the year-ago period, the company recorded $2.4 million under this head, most of which was also received from Roche.
Sarepta and Roche entered into a licensing agreement in 2019 to develop Elevidys. Per the agreement, RHHBY has exclusive rights to launch and market Elevidys in ex-U.S. markets.
Discussion on SRPT’s Operating Costs
Adjusted research and development (R&D) expenses totaled $181.7 million, up 18% year over year. This upside reflects an increase in clinical material expense for Elevidys and a $13 million expense related to a settlement with Brammer Bio.
Adjusted selling, general & administrative (SG&A) expenses rose 7% to $113.4 million, primarily caused by an increase in professional service expenses incurred by the company as part of its continuing efforts to market Elevidys.
SRPT’s 2025 Guidance
Since Sarepta had already hosted a conference call last month, which discussed the preliminary numbers and restructuring plans, it did not host another one for the Q2 results.
In the call held last month, Sarepta suspended its previously issued guidance for Elevidys sales, since it has yet to quantify the impact of the recent reported patient deaths on the therapy’s sales. However, management stated that they expect minimum annual revenues of $500 million from the therapy’s infusions in the ambulant population for the full year. The company did not provide any updates in its earnings release.
Sarepta expects to generate around $900 million from the sale of its three PMO therapies in 2025.
Updates on SRPT’s Pipeline & Other News
Sarepta Therapeutics has been facing a lot of heat from investors after three patient deaths were linked to its gene therapy treatments and attributed to acute liver failure (ALF). While two deaths occurred in patients after receiving Elevidys, one was caused by an experimental limb-girdle muscular dystrophy (LGMD) therapy. All deaths occurred in non-ambulatory patients and were linked to the AAVrh74 gene therapy vector, used in both Elevidys and Sarepta’s experimental LGMD therapies.
However, the FDA cleared Elevidys for use in ambulatory patients last week after finding no link between the therapy and the Brazilian patient’s death. Alongside its earnings results, the company announced that it has resumed delivery of Elevidys shipments so that infusions can continue. Shares of Sarepta were up more than 10% in after-hours trading yesterday, as the gene therapy is currently the biggest contributor to the company’s top line. This upward trend also continued in the pre-market today.
Year to date, the stock has plunged 87% compared with the industry’s 1% decline.
Image Source: Zacks Investment Research
To address the safety issue in non-ambulatory patients, Sarepta is working to create a new protocol with an enhanced immunosuppression regimen to make Elevidys administration safer for non-ambulatory DMD patients. The company also plans to submit these findings to the FDA in hopes of resuming dosing in the non-ambulatory patient population.
Last month, Sarepta initiated a restructuring plan to save nearly $400 million annually starting in 2026. To achieve this target, the company has decided to lay off 36% of its workforce — around 500 employees — which is expected to save nearly $120 million per year.
Sarepta plans to generate around $300 million in annual savings by reprioritizing its pipeline. As part of this plan, it has paused development of most of its LGMD pipeline and shifted focus to the siRNA programs, which were acquired earlier this year as part of a multi-billion-dollar licensing deal with Arrowhead Pharmaceuticals .
Per the deal, Sarepta acquired exclusive rights to Arrowhead’s four clinical-stage programs, each being evaluated in separate phase I/II studies. These include SRP-1001 in facioscapulohumeral muscular dystrophy (FSHD), SRP-1002 in idiopathic pulmonary fibrosis (IPF), SRP-1003 in myotonic dystrophy type 1 (DM1) and SRP-1004 in spinocerebellar ataxia 2 (SCA2). Initial data on the FSHD and DM1 programs are expected before year-end.
Image: Bigstock
Sarepta Soars on Q2 Earnings & Sales Beat, Resumes Elevidys Deliveries
Key Takeaways
Sarepta Therapeutics, Inc. (SRPT - Free Report) reported second-quarter 2025 adjusted EPS of $2.02, which beat the Zacks Consensus Estimate of $1.11. This beat was mainly due to higher-than-expected collaboration revenues coupled with lower operating expenses incurred during the quarter. In the year-ago period, the company posted an adjusted EPS of 43 cents.
The adjusted figures exclude depreciation and amortization costs, stock-based compensation expenses and gains on strategic investments. Including these items, EPS during the quarter was $1.89, compared to 7 cents in the year-ago period.
Sarepta recorded total revenues of $611.1 million, up 68% year over year. The upside was driven by sales of Elevidys, its one-shot gene therapy for Duchenne muscular dystrophy (DMD). The reported figure beat the Zacks Consensus Estimate of $529.5 million.
More on SRPT’s Earnings
Sarepta’s commercial portfolio includes three approved RNA-based PMO therapies — Exondys 51, Vyondys 53 and Amondys 45 — and Elevidys, all targeting DMD indications.
Product revenues rose 42% year over year to $513.1 million, driven by growth in Elevidys sales during the quarter. This figure, also reported by Sarepta last month as part of its preliminary results, beat both the Zacks Consensus Estimate and our model estimates of $507 million each.
The company generated $231.3 million from the product sales of its three PMO therapies, down 3% year over year. The figure beat the Zacks Consensus Estimate of $228.3 million and our model estimate of $227.0 million.
Sarepta generated $281.9 million from Elevidys sales, up 132% year over year. Like product sales, this figure was also reported by the company in its preliminary results and also beat both the Zacks Consensus Estimate of $277.9 million and our model estimate of $280.0 million.
SRPT recorded approximately $98.0 million in collaboration and other revenues associated with the commercial Elevidys supply to Roche (RHHBY - Free Report) . This number included a $63.5 million milestone payment received from RHHBY for Elevidys approval in Japan and contract manufacturing revenues worth $27.0 million. Also included in this broader line item is the $5.1 million recorded by the company as royalty revenues from Elevidys sales by Roche in non-U.S. territories. In the year-ago period, the company recorded $2.4 million under this head, most of which was also received from Roche.
Sarepta and Roche entered into a licensing agreement in 2019 to develop Elevidys. Per the agreement, RHHBY has exclusive rights to launch and market Elevidys in ex-U.S. markets.
Discussion on SRPT’s Operating Costs
Adjusted research and development (R&D) expenses totaled $181.7 million, up 18% year over year. This upside reflects an increase in clinical material expense for Elevidys and a $13 million expense related to a settlement with Brammer Bio.
Adjusted selling, general & administrative (SG&A) expenses rose 7% to $113.4 million, primarily caused by an increase in professional service expenses incurred by the company as part of its continuing efforts to market Elevidys.
SRPT’s 2025 Guidance
Since Sarepta had already hosted a conference call last month, which discussed the preliminary numbers and restructuring plans, it did not host another one for the Q2 results.
In the call held last month, Sarepta suspended its previously issued guidance for Elevidys sales, since it has yet to quantify the impact of the recent reported patient deaths on the therapy’s sales. However, management stated that they expect minimum annual revenues of $500 million from the therapy’s infusions in the ambulant population for the full year. The company did not provide any updates in its earnings release.
Sarepta expects to generate around $900 million from the sale of its three PMO therapies in 2025.
Updates on SRPT’s Pipeline & Other News
Sarepta Therapeutics has been facing a lot of heat from investors after three patient deaths were linked to its gene therapy treatments and attributed to acute liver failure (ALF). While two deaths occurred in patients after receiving Elevidys, one was caused by an experimental limb-girdle muscular dystrophy (LGMD) therapy. All deaths occurred in non-ambulatory patients and were linked to the AAVrh74 gene therapy vector, used in both Elevidys and Sarepta’s experimental LGMD therapies.
While the two Elevidys deaths had initially prompted Sarepta to suspend Elevidys dosing for non-ambulatory patients, the death of an ambulatory DMD patient in Brazil post-treatment with the therapy led to the product being withdrawn completely from the market.
However, the FDA cleared Elevidys for use in ambulatory patients last week after finding no link between the therapy and the Brazilian patient’s death. Alongside its earnings results, the company announced that it has resumed delivery of Elevidys shipments so that infusions can continue. Shares of Sarepta were up more than 10% in after-hours trading yesterday, as the gene therapy is currently the biggest contributor to the company’s top line. This upward trend also continued in the pre-market today.
Year to date, the stock has plunged 87% compared with the industry’s 1% decline.
Image Source: Zacks Investment Research
To address the safety issue in non-ambulatory patients, Sarepta is working to create a new protocol with an enhanced immunosuppression regimen to make Elevidys administration safer for non-ambulatory DMD patients. The company also plans to submit these findings to the FDA in hopes of resuming dosing in the non-ambulatory patient population.
Last month, Sarepta initiated a restructuring plan to save nearly $400 million annually starting in 2026. To achieve this target, the company has decided to lay off 36% of its workforce — around 500 employees — which is expected to save nearly $120 million per year.
Sarepta plans to generate around $300 million in annual savings by reprioritizing its pipeline. As part of this plan, it has paused development of most of its LGMD pipeline and shifted focus to the siRNA programs, which were acquired earlier this year as part of a multi-billion-dollar licensing deal with Arrowhead Pharmaceuticals .
Per the deal, Sarepta acquired exclusive rights to Arrowhead’s four clinical-stage programs, each being evaluated in separate phase I/II studies. These include SRP-1001 in facioscapulohumeral muscular dystrophy (FSHD), SRP-1002 in idiopathic pulmonary fibrosis (IPF), SRP-1003 in myotonic dystrophy type 1 (DM1) and SRP-1004 in spinocerebellar ataxia 2 (SCA2). Initial data on the FSHD and DM1 programs are expected before year-end.
Sarepta Therapeutics, Inc. Price
Sarepta Therapeutics, Inc. price | Sarepta Therapeutics, Inc. Quote
SRPT’s Zacks Rank
Sarepta currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.