Sarepta Therapeutics (SRPT:US) shares sank over 42% on Tuesday after the company announced that a late-stage study of its drug Elevidys in 4- to 7-year-olds with Duchenne muscular dystrophy failed to meet its primary goal.
The disappointing results from the Embark Phase 3 study have led to at least two analyst downgrades on Tuesday, further fueling a stock selloff.
In response to the study outcome, Sarepta Therapeutics plans to request an update to expand the labeled indication for the drug to treat all patients, despite the setback in the specific age group studied.
“The results of EMBARK, our double-blind, placebo-controlled trial, support the conclusion that ELEVIDYS modifies the trajectory of Duchenne and benefits patients across age groups living with this ferociously degenerative disease,” said Doug Ingram, president and chief executive officer, Sarepta.
“The results favored ELEVIDYS across all endpoints in the study, including achieving statistical significance on all pre-specified key secondary endpoints and in each age subgroup of the key secondary endpoints.”
Most recently, Rep. Gottheimer bought some shares in July, when they were trading below $110. Following Tuesday’s selloff, the stock was seen trading just above $60 apiece.