Sarepta Therapeutics(US:SRPT) Zhi Tong Cai Jing·2025-07-17 00:52Group 1 - Sarepta Therapeutics experienced a significant stock increase of over 35%, with a peak close to 60%, following the announcement of a workforce reduction of more than one-third and the continuation of its gene therapy for a fatal muscle disease under a warning for potential liver failure risks [1][2] - The company plans to implement a strategic restructuring and cost-saving measures, which include laying off 500 employees and pausing several drugs in its research pipeline, expected to save approximately $400 million annually [1] - The layoffs are intended to help maintain access to a $600 million revolving credit facility and generate cash flow to assist in repaying convertible bonds due in 2027 [1] Group 2 - In response to FDA requirements, Sarepta agreed to add a black box warning regarding liver failure risks to the label of its gene therapy Elevidys, which is the most severe safety warning for drugs [2] - Company executives indicated that the warning label appears to have addressed FDA concerns about using the therapy in ambulatory patients, while discussions continue regarding a new immunosuppressive regimen for non-ambulatory patients [2] - The CEO stated that Elevidys will remain on the market, and an analyst noted that the black box warning has avoided the worst-case scenario of the therapy being withdrawn [2]