Sarepta Therapeutics Stock Tumbles on Report of Third Death in Clinical Trial

Shares of Sarepta Therapeutics (SRPT) plummeted Friday following a report that a third patient has died during a clinical trial for one of its medications.

Bloomberg reported late Thursday that a third person who was involved in a clinical trial for a gene therapy drug had died from acute liver failure, after the company announced that patients had died in March and June during a clinical trial for the drug Elevidys, which treats muscular dystrophy.

A company spokesperson told Bloomberg that regulators and investigators were informed “in an appropriate and timely manner.” Sarepta did not immediately respond to Investopedia’s request for comment. The company earlier this week said it had agreed to put a warning label about the risk of liver failure on the drug.

Sarepta also on Wednesday announced plans to lay off some of its staff and pause the development of some drugs as part of a restructuring effort to cut an estimated $400 million in costs. That news boosted shares by nearly 20% in Thursday trading. But they were down 17% around midday Friday as the latest report hit the shares.

UBS analysts on Thursday said the warning label addition and Sarepta’s restructuring effort were both positives for the company, but cut their price target to $45 from $85 to account for their lowered revenue projections.

This article has been updated since it was first published to reflect new share-price information.