Sarepta slumps 40% after disappointing drug trials

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Sarepta Therapeutics (SRPT.US) is trading under massive pressure today. Stock is down around 40% on the day, following disappointing results of drug trial. Early evidence suggested that Elevidys drug developed by Sarepta is effective in treatment of patients with Duchenne muscular dystrophy, leading the US Food and Drug Administration to approve its use for a limited number of patients.

However, final trial results that were just published turned out to be disappointing and were not statistically significant to rule the drug effective. As such, Sarepta failed to reach its primary goal, which was broader approval for Elevidys, and missed a chance to boost its sales.

Shares of Sarepta launched today's trading with a big bearish price gap. While part of the drop has been recovered during the cash session, stock is still around 40% lower on the day. A key, multi-year support zone in the $65 per share area is being tested at press time.

Source: xStation5

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