Sarepta Therapeutics (SRPT) Gains Rare Bid Today Despite Latest Analyst Cut

Sarepta Therapeutics’ stock (NASDAQ:SRPT) is seeing a rare bid today, trading up 9% early in the session, having shed 89% since the start of 2025.

The company has been facing somewhat of a perfect storm of regulatory setbacks and financial concerns, sending its stock spiraling to levels not seen in almost a decade. A recent downgrade from Barclays, coupled with the suspension of its key gene therapy, Elevidys, continues to leave many unanswered questions on the company’s future.

Barclays joined the chorus of analysts and downgraded Sarepta to Underweight from Equal Weight, slashing its price target to $10 from $18.

The firm cited the suspension of Elevidys shipments, a negative opinion from the European Medicines Agency (EMA), and critical commentary from the FDA as reasons for its pessimistic outlook.

The core issue revolves around the safety of Elevidys, Sarepta’s gene therapy for Duchenne muscular dystrophy (DMD). Following reports of patient deaths, the FDA requested Sarepta to halt shipments and placed a clinical hold on other gene therapy trials. This action, coupled with the EMA’s refusal to recommend approval, has cast a long shadow over Elevidys’ future prospects.

“The suspension of Elevidys delivery, negative Committee for Medicinal Products for Human Use opinion and FDA commentary have raised concerns on the possibility of Elevidys returning to market,” Barclays analysts wrote in a research note.

Sarepta initially resisted the FDA’s request, arguing that no new safety signals had emerged in younger, ambulatory patients. However, the company later relented, announcing a voluntary pause of Elevidys shipments to maintain a productive relationship with the agency.

The financial implications are significant. Barclays warns of “major” liquidity issues for Sarepta, even with further cost-cutting measures. The company’s current cash burn, without substantial revenue from Elevidys, raises serious questions about its solvency.

This latest cut on SRPT indicates a perceived downside of more than 20% from here, although markets are paying little mind to the update to start the week.