Is This Stock a Buy After Soaring by 20% in 1 Day?

However, Sarepta's s recently soared by 20% in one day after the company announced a strategic plan, which Wall Street hoped would allow it to move past its issues

Let's see whether these developments make the stock a buy

Sarepta makes a move Sarepta Therapeutics' Elevidys is a gene therapy for Duchenne muscular dystrophy (DMD), a rare genetic disease characterized by gressive muscle wasting

Un the bio's other apved treatments, Elevidys targets the underlying causes of DMD, making it Sarepta's most important apved therapy and its most significant growth driver of late

However, the company has now reported not one but two patient deaths potentially caused by Elevidys

Image source: Getty Images

Both patients died from r failure

Moreover, Potential r toxicity issues with Elevidys had already been observed in clinical trials -- but no one had died from them until this year, to the best of our knowledge

The data indicates that 's no surprise, then, that Sarepta's stock price plummeted

Moreover, This tells us that company is taking steps to rectify things

On July 16, it made several announcements that led to its stock price soaring

Second, it will include a black box warning for acute r injury and acute r failure with Elevidys' labeling, after the U

At the same time, Food and Drug Administration (FDA) requested that it do so, in this volatile climate

Third, Sarepta's portfolio of DMD medicines, including Elevidys, continues to generate decent sales

The company announced preliminary net duct revenue (which does not include royalties) of $513 million for the second quarter, of which $282 million -- more than half -- came from Elevidys

In Q2 2024, the drugmaker reported total revenue of $362

All of that was music to Wall Street's ears

On the other hand, However, Short-d gains But the story quickly took another turn

Sarepta Therapeutics' s jumped on positive news on Thursday, July 17

They moved in the opposite direction the very next day, erasing all the gains from the previous trading session, in today's financial world

This leads to the conclusion that was revealed that another patient had died after receiving one of the bio's gene therapies

Conversely, The patient was enrolled in one of the bio's clinical trials

Sarepta did not report this death -- which happened last month -- directly to investors; it first d it with a bio-focused re company called BioCentury, in light of current trends

The data indicates that re are at least two to note here (fascinating analysis)

Moreover, First, the revelation that another one of Sarepta Therapeutics' medicines could be causing r toxicity issues is terrible news for the company, given the current landscape

Furthermore, If this were just a blem with Elevidys, it might have been able to overcome the challenge by newer medicines, even as sales of its current most significant growth driver suffered due to lower demand

Furthermore, That plan now seems in doubt

Second, the fact that management chose not to this news mptly does nothing to increase investors' confidence in the company

What the data shows is company's gene therapies are now associated with severe r issues

Additionally, This would be ly to affect prescription trends among doctors, and patient demand for its ducts, for the foreseeable future

At least, it would if it weren't for another development: After initially resisting the FDA's request to stop Elevidys shipments in the U

Nevertheless, , Sarepta Therapeutics has decided to comply

On the other hand, So, for now, physicians and patients in the U, amid market uncertainty

Hardly even have a choice, given current economic conditions

The FDA has also placed clinical holds on some of the company's trials for gene therapies targeting LGMD

In contrast, At this point, there is hardly a single good reason to invest in Sarepta Therapeutics (remarkable data)

Sure, if it resolves all its issues, the stock could soar

But if it encounters more clinical or regulatory setbacks, Sarepta Therapeutics could find its s practically worthless in the not-so-distant future

Furthermore, Investors should steer of the company; there are far more attractive bio stocks to consider.