SRPT Stock: Sarepta's Elevidys Gets Green Light for Duchenne Patients

By Richard Mason


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Sarepta Therapeutics Inc (NASDAQ: SRPT) achieves FDA approval for its gene therapy for Duchenne muscular dystrophy in patients aged four and older.

Doctor checking disabled person pateint leg at hospital, Muscle weakness.
Sarepta's SRPT Stock Soars After FDA Approval for Gene Therapy

What You Need To Know

The U.S. FDA approved Sarepta Therapeutics Inc (NASDAQ: SRPT) gene therapy for Duchenne muscular dystrophy in patients aged four and older. The therapy, Elevidys, received traditional approval for walking patients and accelerated approval for non-walkers. Despite initial trial setbacks, the therapy showed positive secondary outcomes and safety profiles. The approval encompasses patients who can walk aged four and above, with another approval for those unable to walk aged four to five.

Sarepta's stock surged post-approval. Regulatory approval for non-walking patients might be subject to confirmatory trials. Sarepta is positioned well for manufacturing scale-up. Collaboration with Roche for global commercialization is in place.

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Why This Is Important for Retail Investors

1. Stock Surge Potential

FDA approval often leads to a significant increase in a company's stock price. Sarepta Therapeutics experienced a surge after the announcement, offering immediate gains for investors holding shares or considering an investment.

2. Market Expansion

With Elevidys approved for both walking and non-walking patients with Duchenne muscular dystrophy, Sarepta has broadened its market reach. This expansion can drive revenue growth, making the company's stock more attractive.

3. Future Revenue Stability

The approval paves the way for stable future revenues. With the potential for additional regulatory approvals, Sarepta is positioned to generate consistent income, enhancing its financial stability and long-term investment appeal.

4. Strategic Partnerships

Sarepta's collaboration with Roche for global commercialization underscores the company's strategic approach to market penetration. Such partnerships can enhance global sales and distribution efficiency, positively impacting stock performance.

5. Manufacturing and Scale-Up Readiness

Sarepta's readiness for manufacturing scale-up following the approval indicates its capability to meet market demand efficiently. This operational strength can lead to sustained growth, providing confidence to retail investors about the company's long-term viability and profitability.

How Can You Use This Information?

Here are some of the investing ideas that can be explored using this information:

Growth Investing

The FDA approval and market expansion potential of Sarepta's gene therapy could make it an attractive option for growth-focused investors seeking companies with strong growth prospects.

Growth investing focuses on stocks of companies expected to grow at an above-average rate compared to other stocks in the market; learn more in our article titled 'What is Growth Investing?'.

Event-Driven Strategy

Retail investors could consider an event-driven approach by capitalizing on market reactions following significant events like regulatory approvals impacting Sarepta's stock performance.

An event-driven strategy capitalizes on stock mispricing that may occur before or after a corporate event, such as a merger or acquisition.

Speculative Investing

Given the transformative nature of the FDA approval for Elevidys, speculative investors may find opportunities in betting on Sarepta's future growth potential in the gene therapy market.

Speculative investing engages in high-risk investments with the potential for substantial rewards, often over a short time frame.

Read What Others Are Saying

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Popular ETFs

Many investors prefer to invest in stocks via an exchange-traded fund for ease and reduced risk. In fact, as of the end of 2023, passive investment products surpassed actively managed ones in total assets held, marking a significant milestone in investment trends. Some of the most popular ETFs include the following:

  • iShares Nasdaq Biotechnology ETF (IBB)

    The iShares Nasdaq Biotechnology ETF provides exposure to a broad range of biotechnology companies, including Sarepta Therapeutics. This ETF focuses on innovative biotech firms and can benefit from industry advancements and regulatory approvals.

  • SPDR S&P Biotech ETF (XBI)

    The SPDR S&P Biotech ETF offers diversified exposure to the biotechnology sector. It includes small- to mid-cap biotech firms like Sarepta, making it a suitable option for investors looking to capitalize on the growth potential within this space.

  • ARK Genomic Revolution ETF (ARKG)

    The ARK Genomic Revolution ETF targets companies involved in the genomic revolution, including those in gene therapy, like Sarepta Therapeutics. This ETF is ideal for investors interested in cutting-edge biotechnology and genetic research.

  • VanEck Biotech ETF (BBH)

    The VanEck Biotech ETF focuses on leading biotechnology companies. With a diversified portfolio that includes Sarepta Therapeutics, this ETF offers exposure to firms at the forefront of medical innovations.

  • Invesco Dynamic Biotechnology & Genome ETF (PBE)

    The Invesco Dynamic Biotechnology & Genome ETF includes companies engaged in biotechnology and genomics research. This ETF provides a balanced exposure to both established and emerging biotech firms, making it a solid choice for investors.

Explore more on these topics:



This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Richard Mason does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above article.

Richard Mason has not been paid to produce this piece by the company or companies mentioned above.

Digitonic Ltd, the owner of, does not hold a position or positions in the stock(s) and/or financial instrument(s) mentioned in the above article.

Digitonic Ltd, the owner of, has not been paid for the production of this piece by the company or companies mentioned above.

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