Is This Stock a Buy After a Massive 20% Drop in 1 Day?

Core Viewpoint - Sarepta Therapeutics is facing significant challenges, particularly following a 20% drop in share price due to concerns surrounding its key product, Elevidys, after a patient suffered fatal liver failure [1][5]. Group 1: Company Overview - Sarepta Therapeutics specializes in gene therapies for Duchenne muscular dystrophy (DMD), with Elevidys being its most important product targeting the genetic causes of the disorder [3]. - Elevidys received full U.S. approval for ambulatory DMD patients aged 4 and older, but is under accelerated approval for non-ambulatory patients, requiring further clinical trials to confirm efficacy [4]. Group 2: Recent Developments - A young patient treated with Elevidys experienced fatal acute liver failure, raising concerns about the treatment's safety, despite liver injury being a known risk [5]. - In Q4, Sarepta reported revenue of $658.4 million, a 66$384.2 million, accounting for over 50% of total revenue [5]. Group 3: Market Reaction and Future Outlook - The market reacted negatively to the news of the patient death, creating uncertainty around Elevidys' future sales and prescribing trends [5][7]. - Despite the incident, the company noted that the patient had a recent cytomegalovirus infection, which could have contributed to the liver failure, suggesting that the situation may not be solely attributable to Elevidys [6]. - The worst-case scenario would involve regulators pulling Elevidys from the market, but this is considered unlikely due to the lack of alternative effective treatments for DMD [7]. - Sarepta has other DMD treatments in development, but Elevidys was expected to be the primary growth driver, making the current uncertainty a risk for the company's stock [8].