Sarepta Swings to Loss as ELEVIDYS Sales Weaken
Second-quarter revenue fell to $401.3 million as a narrower ELEVIDYS label weighed on volume.
Sarepta Therapeutics (SRPT), a biotechnology company, swung to a second-quarter loss as lower ELEVIDYS revenue and a litigation charge pressured results. The company lost $4.9 million, or $0.05 a share, compared with net income of $196.9 million, or $1.89 a share, a year earlier.
The quarter marked a sharp reversal from the start of the year. Total revenue fell 34% from $611.1 million a year earlier and declined about 45% sequentially from $730.8 million, while GAAP operating income dropped to $13.3 million from $358.4 million in the first quarter.
The revenue decline primarily reflected lower ELEVIDYS volume following restriction of the therapy's label to ambulatory patients. The comparison also included a $63.5 million Roche milestone recorded a year earlier, partly offset by higher contract-manufacturing revenue and a new $10.0 million license contribution.
Net product revenue was nearly flat from the first quarter at $328.7 million. PMO revenue increased to $230.6 million from $228.6 million, while ELEVIDYS revenue decreased to $98.1 million from $102.0 million.
Lower spending cushioned some of the decline. R&D expense fell $113.1 million from a year earlier to $91.3 million, reflecting Sarepta's July 2025 pipeline reprioritization and restructuring-related reductions. SG&A expense declined $30.3 million to $107.6 million, though the company recorded a new $39.0 million litigation-contingency charge tied to a potential patent settlement.
Sarepta now expects 2026 net product revenue of $1.2 billion to $1.3 billion, narrowing its previous range of $1.2 billion to $1.4 billion. It also expects combined non-GAAP R&D and SG&A expense of $800 million to $850 million, compared with its prior ceiling of $900 million.
Cash, restricted cash and investments increased about $197 million during the quarter to roughly $945 million. Sarepta expects to complete enrollment in ENDEAVOR Cohort 8 by year-end and report 12-week data from the full cohort in the first quarter of 2027, while the FDA has accepted supplemental applications seeking traditional approval for AMONDYS 45 and VYONDYS 53.