Why Sarepta Therapeutics Inc. Shares Plunged Today
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of biopharmaceutical drugmaker Sarepta Therapeutics plummeted 55% today after the Food and Drug Administration raised concerns about the trial results for its experimental Duchenne muscular dystrophy drug, eteplirsen.
So what: The FDA called Sarepta's application to sell eteplirsen "premature," suggesting that the company will need to spend more considerable time and money on the drug to address those concerns. In fact, the FDA's request for more data will delay the initiation of dosing in the confirmatory study until at least the second quarter of 2014 -- a particularly big deal for Sarepta, which has no other products in the market to help offset the cash burn.
Now what: Sarepta will follow up with the FDA this month to discuss the study's design.
"We strongly believe in the potential of eteplirsen to address a serious unmet medical need in DMD and we are committed to its development," Sarepta CEO Chris Garabedian said in a statement. "Our team at Sarepta recognizes the urgency of families who are seeking new treatments, and we will continue to work with the FDA on an acceptable confirmatory study design and, in parallel, seek to address their concerns regarding a potential NDA filing based on our current dataset."
Given the extremely speculative nature of the stock, however, average investors would do well to remain on the sidelines.
A big growth stock to check out instead
This incredible tech stock is growing twice as fast as Google and Facebook, and more than three times as fast as Amazon.com and Apple. Watch our jaw-dropping investor alert video today to find out why The Motley Fool's chief technology officer is putting $117,238 of his own money on the table, and why he's so confident this will be a huge winner in 2013 and beyond. Just click here to watch!
The article Why Sarepta Therapeutics Inc. Shares Plunged Today originally appeared on Fool.com.Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.