Sarepta cuts 36% of workforce, expects $400M in annual savings
Sarepta Therapeutics Inc. (NASDAQ: SRPT) announced a strategic restructuring plan that includes reducing its workforce by 36%, affecting approximately 500 employees, as part of efforts to cut operating expenses and meet 2027 financial obligations.
The company expects the restructuring to deliver approximately $400 million in annual cost reductions, lowering average annual non-GAAP research and development and selling, general and administrative expenses to between $800 million and $900 million starting in 2026. The workforce reduction is projected to generate approximately $120 million in annual cash cost savings in 2026.
Sarepta reported preliminary second quarter 2025 financial results showing total net product revenue of $513 million, with ELEVIDYS generating $282 million and RNA-based PMOs contributing $231 million. The company held approximately $850 million in cash, cash equivalents, restricted cash and investments as of June 30, 2025.
The U.S. Food and Drug Administration has requested that Sarepta include a black box warning for acute liver injury and acute liver failure in the ELEVIDYS label, consistent with other AAV-delivered gene therapies. The company agreed to this change, which appears to resolve material issues with the ambulant population indication.
Sarepta paused shipments of ELEVIDYS for non-ambulant patients while exploring additional prophylactic immunosuppression. An expert committee of specialists aligned on an enhanced immunosuppressive regimen with sirolimus for non-ambulant patients. The company plans to submit findings to the FDA and discuss gathering data through a new cohort in the ENDEAVOR study.
The restructuring includes pipeline reprioritization focused on the company's siRNA platform, with programs targeting facioscapulohumeral muscular dystrophy, myotonic dystrophy type 1, spinocerebellar ataxia type 2, idiopathic pulmonary fibrosis, and Huntington's disease. Several programs, including most gene therapies for limb-girdle muscular dystrophy, will be paused.
Sarepta announced key executive appointments, including Ian Estepan as President and Chief Operating Officer, Louise Rodino-Klapac as President of Research & Development and Technical Operations, and Ryan Wong as Chief Financial Officer.