Sarepta Stock Tumbles 34% After Earnings Report. Why Shares Crashed.

Core Viewpoint - Sarepta Therapeutics experienced a significant stock decline of 34% following the release of its earnings report, despite reporting a smaller-than-expected loss for the third quarter [2][3]. Financial Performance - The company reported an adjusted third-quarter loss of 13 cents per share, which was better than the anticipated loss of 32 cents per share by analysts [4]. - Prior to the recent selloff, Sarepta's stock had already decreased by 80% for the year [5]. Clinical Trial Results - Disappointing trial data for two treatments targeting Duchenne muscular dystrophy raised concerns regarding the timeline for regulatory approval of a key drug [3]. - The trial results did not achieve statistical significance, contributing to the stock's sharp decline [3]. Regulatory Concerns - The stock's decline is compounded by an ongoing inquiry from the Food and Drug Administration (FDA) into Elevidys, a gene therapy for Duchenne muscular dystrophy, following reports of liver failure in two patients who received the treatment [5].