Sarepta Therapeutics is set to cut 500 jobs as part of its restructuring and pipeline prioritisation plan, which is expected to result in annual cash cost savings of $120m in 2026.
With its pipeline reprioritisation, the company anticipates delivering $300m in annual non-personnel cost savings from 2026.
After its strategic review, the company aims to focus on high-impact programmes to meet its 2027 financial obligations and support long-term viability.
It also announced an update regarding its Elevidys label changes for Duchenne muscular dystrophy (DMD) treatment.
The company is engaging with the US Food and Drug Administration (FDA) regarding the label update for the gene therapy, which includes adding a black box warning for acute liver injury (ALI) and acute liver failure (ALF).
It agrees with this change, which aims to resolve issues related to the ambulant portion of the product label. Shipments for non-ambulant patients will be paused as the company is exploring additional prophylactic immunosuppression protocols.
Sarepta has initiated the restructuring to enhance financial flexibility with immediate operational expense reductions aligned with strategic priorities.
These measures are expected to yield $400m in cost savings annually.
The company anticipates $100m in cost savings by the end of 2025 after accounting for severance costs between $32 and $37m.
This approach should maintain access to a $600m revolving credit facility while managing liabilities proactively, including repayment of convertible notes due in 2027.
Despite these cuts, Sarepta will continue supporting its four marketed Duchenne therapies along with clinical trial commitments.
As part of this reprioritisation effort, several gene therapy programmes for limb-girdle muscular dystrophy (LGMD) will be paused.
For other discontinued projects, Sarepta intends to seek strategic alternatives, potentially through partnerships.
Sarepta Therapeutics CEO Doug Ingram stated: “Faced with environmental changes, we have decided to act decisively, implementing a focused strategy to ensure Sarepta remains a vibrant, financially enduring, patient-centric organisation dedicated to improving the lives of those with rare genetic diseases.
“These changes will ensure we remain a financially strong and profitable organisation built on a sharpened and focused strategy. We will continue to drive performance of ELEVIDYS and our three PMOs [exon-skipping phosphorodiamidate morpholino oligomer drugs] in service of the Duchenne community [...and] we will advance our high-value, focused pipeline of programmes for rare genetic diseases, primarily relying on the siRNA platform, while ensuring we meet our financial obligations.”
