In its latest earnings report on Thursday, Sarepta Therapeutics reported net product revenue from its gene therapy Elevidys that beat Wall Street expectations. Sales, however, continued to dip quarter over quarter, a sign some analysts say means the company is still stabilizing.
Sarepta recorded $331 million in overall net product revenue during the first three months of the year, above the average analyst estimate, according to Brian Abrahams of RBC Capital Markets. Even so, the biotechnology company’s shares dipped more than 10% Thursday, to trade around $20.60 apiece.
Abrahams believes that uncertainties surrounding long-term growth and competitive threats should shift investor focus away from Elevidys and toward Sarepta’s early-stage platform of “small interfering RNA” therapies. There, “early signals piqued” Wall Street’s interest. But the programs “still need to prove differentiation” and, as such, “we believe the stock is fairly valued,” Abrahams wrote in a note to clients.
In a statement, Sarepta CEO Doug Ingram maintained that the company is in a “position of financial strength” and is able to “fully fund” its pipeline of research projects.
Sarepta is coming off a tumultuous year that depleted a large chunk of its market value. The company faced research setbacks as well as safety concerns related to Elevidys — which, until recently, was a key growth driver — leading its temporary removal from the market. The Food and Drug Administration now limits the therapy’s use. Sales have continued to decline.
Sarepta additionally laid off over a third of its staff, halted several programs, pushed off debt and dialed back prospects for Elevidys. Earlier this year, Ingram announced plans to retire by the end of 2026.
The company is now betting on two siRNA drugs licensed from Arrowhead Pharmaceuticals. In March, it unveiled positive early results for the drugs, SRP-1001 and SRP-1003, which aim to treat two genetic conditions causing muscle deterioration. Results were promising, lifting shares that month, though analysts had mixed reactions to them.
Sarepta said more data is expected in the second half of the year.
Of Sarepta’s new product revenue, $102 million comes from Elevidys. Analysts had penciled in $95 million, Abrahams wrote. Revenue for Sarepta’s other products landed at $229 million, falling in line with expectations.
Earnings per share landed at $3.16, jumping from a loss of $3.58 per share in the fourth quarter of 2025, and significantly beating some analyst forecasts of $0.90 to $0.99 per share.
The company reiterated its full-year 2026 financial guidance of net product revenue between $1.2 to $1.4 billion.
