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Sarepta Therapeutics (SRPT)
NASDAQ:SRPT

Sarepta Therapeutics (SRPT) AI Stock Analysis

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Sarepta Therapeutics

(NASDAQ:SRPT)

Rating:53Neutral
Price Target:
$17.50
▼(-3.85%Downside)
Sarepta Therapeutics' overall stock score reflects a combination of strong revenue growth and strategic shareholder support, tempered by significant technical weakness and profitability challenges. Long-term growth prospects remain, but short-term headwinds from technicals and operational hurdles weigh on the stock's current valuation.
Positive Factors
Profitability prospects
Management believes that the company can be profitable based on the ambulatory opportunity alone.
Regulatory engagement
The FDA has proactively asked about the use of sirolimus, suggesting that Elevidys may not be completely removed from the market.
Negative Factors
Market penetration
The inability to drive market penetration in the non-ambulatory setting represents a massive blow to the ELEVIDYS franchise.
Regulatory risks
The FDA is evaluating the need for further regulatory action on ELEVIDYS after reports of patient deaths due to acute liver failure.
Safety concerns
The risk-benefit profile of ELEVIDYS is deteriorating following reports of fatality related to the drug.

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

Sarepta Therapeutics Business Overview & Revenue Model

Company DescriptionSarepta Therapeutics, Inc. is a biotechnology company focused on the discovery and development of precision genetic medicines to treat rare diseases. The company is a leader in the research and development of RNA-based therapeutics, gene therapy, and other genetic medicine technologies. Its core products are primarily aimed at treating Duchenne muscular dystrophy (DMD), a rare genetic disorder characterized by progressive muscle degeneration and weakness. Sarepta's portfolio includes approved therapies, such as EXONDYS 51, VYONDYS 53, and AMONDYS 45, which are exon-skipping therapies addressing specific mutations in the DMD gene.
How the Company Makes MoneySarepta Therapeutics generates revenue primarily through the sale of its approved exon-skipping therapies for Duchenne muscular dystrophy. The company earns money by commercializing its products in the U.S. and through strategic partnerships and licensing agreements for international markets. Additionally, Sarepta is involved in research and development collaborations with other pharmaceutical companies and academic institutions, which may provide milestone payments and royalties. The company's earnings are significantly influenced by the successful regulatory approval and market adoption of its therapies, as well as ongoing advancements in its pipeline of genetic medicine candidates.

Sarepta Therapeutics Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q1-2025)
|
% Change Since: -61.07%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant revenue growth and strong demand projections for the future. However, challenges such as the tragic patient safety incident, administrative delays, and site capacity imbalances have led to a downward revision of revenue guidance. Despite these challenges, the company remains optimistic about long-term demand and continues to work on addressing the issues.
Q1-2025 Updates
Positive Updates
Strong Revenue Growth
Sarepta achieved $612 million in total net product revenue for the first quarter of 2025, representing 70% growth over the same quarter last year.
ELEVIDYS Sales Increase
ELEVIDYS achieved sales of $375 million in the quarter, representing a 180% increase over the same quarter last year.
Successful PMO Franchise Growth
The PMO franchise grew 5%, achieving $237 million for the quarter.
Positive Long-Term Demand Outlook
Despite short-term challenges, Sarepta projects a pickup in demand beginning in the summer and extending through the remainder of the year, maintaining confidence in the long-term demand outlook for ELEVIDYS.
Negative Updates
Revised Revenue Guidance
Sarepta revised its net product revenue guidance for the year to $2.3 billion to $2.6 billion across its four approved therapies due to various factors including a safety event and administrative delays.
Patient Safety Incident
A patient treated with ELEVIDYS suffered acute liver failure and passed away, causing delays in treatment schedules as families sought more information.
Administrative Delays
The administrative path from initial paperwork to infusion is taking about one month to six weeks longer than original estimates, impacting revenue timing.
Site Capacity Imbalance
60% of current revenue comes from top sites, many of which are fully booked out to 12 months, necessitating a focus on engaging sites with more capacity.
Company Guidance
During the call, Sarepta Therapeutics updated its guidance for the year, projecting net product revenue between $2.3 billion and $2.6 billion across its four approved therapies. This adjustment reflects several factors, including a significant safety event involving their gene therapy product ELEVIDYS, which contributed to delays in patient treatment. The company reported first-quarter total net product revenue of $612 million, marking a 70% increase compared to the previous year, with ELEVIDYS achieving sales of $375 million, a 180% increase. While the PMO franchise grew by 5% to $237 million, the company anticipates a 20% revenue decrease in Q2 compared to Q1 due to ongoing impacts from the safety event and administrative challenges. Sarepta emphasized its commitment to improving patient access and education while addressing site capacity issues to support revenue growth for the remainder of 2025.

Sarepta Therapeutics Financial Statement Overview

Summary
Sarepta Therapeutics demonstrates strong revenue growth and a stable asset base, but faces profitability and cash flow challenges. The company is investing heavily in growth, potentially at the expense of short-term profitability. Careful management of operating expenses and strategic financing will be crucial for sustaining growth and improving financial health.
Income Statement
65
Positive
Sarepta Therapeutics has shown consistent revenue growth, with a notable increase in total revenue from $540 million in 2020 to $2.23 billion in TTM (Trailing-Twelve-Months). The gross profit margin remains strong, yet the company is facing challenges at the operating level with negative EBIT and EBITDA margins, indicating profitability issues. Net profit margin is also negative, pointing towards high operating expenses and potential inefficiencies.
Balance Sheet
60
Neutral
The balance sheet shows a moderate debt-to-equity ratio, reflecting prudent financial leverage but potential exposure to interest rate risks. The equity ratio is stable, suggesting a solid asset base, though return on equity is negative due to net losses. This indicates challenges in generating sufficient returns for shareholders despite asset growth.
Cash Flow
55
Neutral
The cash flow statement reveals negative operating and free cash flows, highlighting potential liquidity concerns. The company's ability to convert operating cash flow into net income is weak, with significant cash outflows from operations. Despite negative free cash flow growth, financing activities provide some liquidity cushion.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.23B1.90B1.24B933.01M701.89M540.10M
Gross Profit1.81B1.58B1.09B793.02M604.84M476.72M
EBITDA-117.73M333.06M-439.20M-582.12M-306.08M-453.38M
Net Income-248.39M235.24M-535.98M-703.49M-418.78M-554.13M
Balance Sheet
Total Assets3.47B3.96B3.26B3.13B3.15B2.98B
Cash, Cash Equivalents and Short-Term Investments522.76M1.35B1.68B1.99B2.12B1.94B
Total Debt1.34B1.34B1.40B1.62B1.14B1.07B
Total Liabilities2.32B2.44B2.41B2.74B2.22B2.22B
Stockholders Equity1.14B1.53B859.34M384.95M928.01M761.76M
Cash Flow
Free Cash Flow-687.55M-342.74M-588.34M-356.17M-481.66M25.26M
Operating Cash Flow-547.15M-205.79M-500.99M-325.35M-443.17M107.47M
Investing Cash Flow245.59M755.56M-165.80M-1.05B495.41M-121.72M
Financing Cash Flow115.14M124.81M125.00M232.51M561.57M682.32M

Sarepta Therapeutics Technical Analysis

Technical Analysis Sentiment
Negative
Last Price18.20
Price Trends
50DMA
38.26
Negative
100DMA
61.46
Negative
200DMA
91.72
Negative
Market Momentum
MACD
-6.62
Positive
RSI
22.92
Positive
STOCH
17.09
Positive
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 18.2 is below the 20-day moving average (MA) of 26.89, below the 50-day MA of 38.26, and below the 200-day MA of 91.72, indicating a bearish trend. The MACD of -6.62 indicates Positive momentum. The RSI at 22.92 is Positive, neither overbought nor oversold. The STOCH value of 17.09 is Positive, 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 62 risk factors in its most recent earnings report. Sarepta Therapeutics reported the most risks in the "Tech & Innovation" 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
77
Outperform
$4.78B13.8125.71%-12.31%-17.53%
56
Neutral
$6.68B-20.00%112.46%54.33%
54
Neutral
$5.07B-282.16%72.16%9.65%
53
Neutral
$1.74B19.61-23.61%59.15%-1881.09%
52
Neutral
$6.87B-36.68%-100.00%5.49%
51
Neutral
$7.55B0.30-61.90%2.27%17.11%1.58%
50
Neutral
$8.30B-47.71%99.19%48.43%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SRPT
Sarepta Therapeutics
18.20
-133.53
-88.01%
ALKS
Alkermes
29.00
4.71
19.39%
BPMC
Blueprint Medicines
128.20
16.50
14.77%
AXSM
Axsome Therapeutics
103.91
21.89
26.69%
RVMD
Revolution Medicines
37.19
-0.34
-0.91%
LEGN
Legend Biotech
35.91
-10.39
-22.44%

Sarepta Therapeutics Corporate Events

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Sarepta Therapeutics Approves Amendments at Annual Meeting
Positive
Jun 6, 2025

On June 5, 2025, Sarepta Therapeutics held its annual meeting where stockholders approved amendments to the company’s equity and employee stock purchase plans, increasing the number of shares available under these plans. Additionally, stockholders elected new directors, approved executive compensation, and ratified KPMG as the independent auditor, indicating strong shareholder support for the company’s strategic initiatives and governance.

The most recent analyst rating on (SRPT) stock is a Buy with a $200.00 price target. To see the full list of analyst forecasts on Sarepta Therapeutics stock, see the SRPT Stock Forecast page.

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: Jun 26, 2025