Sarepta Therapeutics Inc. has experienced a dramatic decline in its stock price, with shares dropping more than 30% on Friday alone. This latest plunge adds to a startling pattern, with the company’s stock down more than 87% on the year. The abrupt downturn has many wondering what this means for the future of gene therapy cures. Recent events have placed these powerful therapies in the spotlight and under scrutiny.
Douglas Ingram, president and CEO of Sarepta Therapeutics, told CNBC this morning that the company is waiting to hear from the U.S. Food and Drug Administration (FDA). He said that this goes for their gene therapy products as well. The lack of clarity from the FDA has left nervous investors on edge. They fear for the viability of Sarepta’s approved gene therapies, which are critical to the company’s expansion and market confidence.
Things escalated this week when Sarepta Therapeutics confirmed a third death in connection with a different experimental gene therapy. This occurrence has opened Pandora’s box on ethical concerns and has increased stakeholder cynicism towards the safety and efficacy of their treatments. The challenge for the young company is an acute one, as stock prices tumble. Safety concerns obviously compound the turbulence it needs to fly through.
Photo by Michael Nagle/Bloomberg via Getty Images NEW YORK, NY – DECEMBER 5: Douglas Ingram speaks at the 2017 Forbes Healthcare Summit. Sadie Williams This image is an effective, powerful way to communicate the severity and consequence of that scenario. Ingram’s leadership is now being questioned as investors wonder where to find comfort in the face of fading confidence in the company’s strategy.
As Sarepta Therapeutics continues to work through these concerns, industry watchers are paying close attention. The potential risks of their gene therapy treatments could be substantially serious or even fatal to patients relying on these therapies. These ESG risks can directly impact a company’s bottom line.