SRPT Q1 Earnings Miss, Sales Beat, Stock Slides 21% on '25 View Cut

Core Viewpoint - Sarepta Therapeutics reported a significant adjusted loss in Q1 2025, primarily due to a one-time charge related to a multi-billion-dollar deal with Arrowhead Pharmaceuticals, missing earnings expectations by a wide margin [1][2] Financial Performance - The company recorded total revenues of $744.9 million, an 80% increase year over year, driven by sales of Elevidys, surpassing the Zacks Consensus Estimate of $698.2 million [3] - Product revenues rose 70% year over year to $611.5 million, although this figure fell short of the Zacks Consensus Estimate of $664 million [4] - Elevidys sales generated $375 million, down from $384.2 million in the previous quarter, missing estimates due to safety concerns and site-related constraints [5] - Collaboration and other revenues associated with Elevidys supply to Roche amounted to approximately $133.3 million, significantly up from $54 million in the year-ago period [6] Operating Costs - Adjusted R&D expenses surged to $749.2 million from $178.1 million year over year, reflecting increased costs related to the Arrowhead deal [8] - Adjusted SG&A expenses totaled $107.1 million, a 7% increase year over year, driven by higher professional service expenses [9] Guidance and Market Reaction - Sarepta revised its full-year net product revenue guidance to between $2.3 billion and $2.6 billion, down from a previous forecast of $2.9-$3.1 billion, citing safety concerns and administrative complexities [10] - Following the revised guidance, shares of Sarepta fell 21% in after-hours trading, with a year-to-date decline of 62% compared to a 3% decline in the industry [11] Pipeline Developments - The company is advancing several investigational gene therapies, including SRP-9003 for Limb-girdle muscular dystrophy and SRP-6004 for LGMD type 2B/R2, with data expected in 2025 [17][18] - Sarepta's licensing agreement with Roche for Elevidys allows Roche exclusive rights to market the product in non-U.S. markets, which has implications for revenue generation [7]