Investigation into potential securities fraud related to Elevidys drug leading to stock decline

From Financial Modeling Prep: 2025-06-23 18:00:00

Pomerantz LLP is investigating Sarepta Therapeutics for potential securities fraud related to its Duchenne muscular dystrophy drug Elevidys, following two patient fatalities due to acute liver failure. The disclosure of these incidents led to a stock price decline of $27.81 per share, prompting varied analyst ratings and market responses.

On June 16, 2025, Sarepta reported a second fatality linked to Elevidys, resulting in the suspension of its clinical trial and distribution for non-ambulatory patients. This announcement caused another significant stock drop of $15.24 per share, further impacting investor confidence and market sentiment.

In response to the unfolding situation, Cowen & Co. downgraded Sarepta from a “Buy” to a “Hold” rating, while Wells Fargo adjusted the price target from $100 to $75. These changes reflect the prevailing uncertainty surrounding the company’s future prospects and the ongoing investigation into potential securities fraud.

As of the latest data, Sarepta’s stock is priced at $19.25, representing a 4.13% decrease with a $0.83 change. The stock has fluctuated between $18.70 and $19.76, with a 52-week high of $168.31 and a low of $18.30. With a market capitalization of approximately $1.89 billion, Sarepta continues to face challenges amid evolving market conditions and regulatory scrutiny.



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