Sarepta Therapeutics, Inc. (NASDAQ:SRPT) has announced a strategic restructuring plan to prioritize high-value, high-impact programs, meet its 2027 financial obligations, and support its long-term financial viability. This plan is expected to position the company for long-term sustainable growth, emphasizing near* and mid-term opportunities from the sirna platform.
As part of the restructuring, Sarepta has initiated immediate changes to reduce operating expenses, aiming to enhance financial flexibility and meet its financial obligations. The company anticipates approximately $400 million in annual cost reductions, with a 36% workforce reduction impacting approximately 500 employees, projected to generate approximately $120 million in annual cash cost savings in 2026.
In terms of financial performance, for the second quarter ended June 30, 2025, Sarepta reported preliminary financial results. Total net product revenue stood at $513 million, with Elevidys net product revenue at $282 million and RNA-based PMOs net product revenue at $231 million. The combined research and development expense and selling, general and administrative expense were reported at $294 million on a non-GAAP basis.
Sarepta’s refocused pipeline will primarily leverage potentially best-in-class sirna platform programs. The company will continue to support its four on-market Duchenne therapies and all associated clinical trial commitments and evidence-generation activities, with revenues from this robust Duchenne portfolio expected to continue driving profitability and funding a focused pipeline of high-impact development programs.
The company also provided an update on activities related to the label updates underway for Elevidys, the first and only approved gene therapy for the treatment of Duchenne muscular dystrophy. The U.S. Food and Drug Administration (FDA) has requested the inclusion of a black box warning for acute liver injury and acute liver failure in the Elevidys label, with Sarepta agreeing to this change. Sarepta has also completed an expert committee on a protocol for the use of additional prophylactic immunosuppression for non-ambulant patients and will submit the protocol to the FDA imminently.
Sarepta also announced key executive appointments as part of the restructuring, with Ian Estepan named President and Chief Operating Officer, Louise Rodino-Klapac, Ph.D., named President of Research & Development and Technical Operations, Ryan Wong named Chief Financial Officer, Rachael Potter, Ph.D., named Chief Scientific Officer, and Patrick Moss, Pharm.D., named Chief Commercial Officer.
These changes come as Sarepta aims to ensure sustained profitability and preserve the company’s ability to deliver on its mission of advancing innovative medicines for those with rare genetic diseases. The company will be hosting a conference call and webcast to discuss these updates on Wednesday, July 16, 2025, at 4:30 p.m. Eastern Time. Today the company's shares have moved 0.93% to a price of $18.38. Check out the company's full 8-K submission here.
