Sarepta Restructures After Deaths, Pauses Elevidys Shipments

Sarepta Therapeutics is undergoing a major restructuring that includes cutting about 36% of its workforce, or approximately 500 jobs, and shifting its research priorities after two patient deaths linked to its Elevidys gene therapy for Duchenne muscular dystrophy. The company paused shipments of Elevidys for non-ambulant patients and is exploring additional safety protocols, while the FDA is adding a black box warning for acute liver injury and failure. Sarepta expects the changes to save $400 million annually, and its stock surged up to 50% in after-hours trading despite a sharp year-to-date decline. Analysts are cautiously optimistic, viewing the restructuring as necessary for the company's financial stability and its continued support of four marketed Duchenne therapies. Sarepta faces a class action lawsuit alleging it misled investors about Elevidys' safety risks and trial protocols. Executive changes include naming Ryan Wong as CFO and a reprioritization of the research pipeline to focus on high-impact programs.