Despite strong Q1 sales led by Elevidys, Sarepta raised spending forecasts and lowered full-year guidance, triggering a sharp market reaction.

Shares of Sarepta Therapeutics plunged more than 26% on Tuesday, falling to their lowest level since 2017, after the company issued a sharp downward revision to its 2025 revenue outlook and raised its expense projections.

Sarepta now expects full-year product revenue between $2.3 billion and $2.6 billion, down from a previous estimate of $2.9 billion to $3.1 billion. 

At the same time, it raised its forecast for combined adjusted R&D and SG&A expenses to $1.784 billion–$2.184 billion, compared with an earlier range of $1.2 billion–$1.3 billion.

Despite the guidance reset, Q1 results beat expectations. 

Sarepta reported revenue of $744.9 million, topping the consensus estimate of $684.1 million. 

Net product revenue rose 70% year-over-year to $611.5 million, led by Elevidys at $375 million, and $236.5 million from the company’s PMO (phosphorodiamidate morpholino oligomer) franchise.

Elevidys is Sarepta’s gene therapy for Duchenne muscular dystrophy (DMD), designed to deliver a shortened but functional version of the dystrophin gene to slow disease progression. 

Meanwhile, PMO therapies are exon-skipping drugs that help DMD patients produce functional dystrophin protein by bypassing genetic mutations. 

Sarepta currently markets three PMO-based therapies — EXONDYS 51, VYONDYS 53, and AMONDYS 45 — which remain key revenue drivers.

CEO Doug Ingram acknowledged the quarter’s operational challenges but said the company remains committed to long-term growth. 

“We are well-positioned to navigate these chaotic times,” Ingram said, highlighting continued investment in Sarepta’s LGMD gene therapy pipeline and advancing siRNA programs targeting DM1 and FSHD1, with data expected later this year.

Despite the guidance cut, retail sentiment on Stocktwits was “extremely bullish” with “extremely high” message volume. 

Some retail investors viewed the selloff as typical volatility in early-stage biotech investing, while others expressed confidence that the stock has limited downside from current levels.

Sarepta maintains a ‘Strong Buy’ consensus among Wall Street analysts. According to Koyfin, 25 analysts cover the stock, with 14 rating it ‘Buy,’ 7 ‘Strong Buy,’ and 4 ‘Hold.’ 

There were no ‘Sell’ or ‘Strong Sell’ ratings. The average analyst rating score is 4.4 on 5.

Shares of Sarepta have fallen 62.3% so far this year.

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