Sarepta Therapeutics Faces Wall Street Skepticism Amid Gene Therapy Safety Concerns

Sarepta Therapeutics (SRPT) shares plummeted 46% Monday after confirming a second patient death linked to its DMD gene therapy Elevidys. The biotech firm and partner Roche have suspended commercial and clinical use in non-ambulatory patients pending safety review.

Despite Wall Street's growing caution and recent downgrades, analyst sentiment remains fundamentally bullish. The stock retains 200% upside potential if Sarepta can resolve safety issues and demonstrate the long-term viability of its genetic medicine pipeline for rare neuromuscular diseases.

The market's violent reaction highlights the high-risk, high-reward nature of gene therapy investments. Sarepta's fortunes now hinge on its ability to conduct a transparent safety review while maintaining confidence in its broader Duchenne muscular dystrophy treatment platform.