Biotech Stock Surges After Experimental Drug Gets Key Vote

May 15, 2023 thejournalbiz

A final decision by the Food and Drug Administration is expected later this month.

The FDA seems likely to approve an experimental gene therapy to treat a rare disease. That is translating to big gains for Sarepta Therapeutics shareholders.

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The biotech company’s shares were up 25% Monday after a panel of outside experts voted 8-to-6 to recommend approval of @Sarepta gene therapy on Friday afternoon.#biotech #pharmacy pic.twitter.com/4lfAt3ETy6

— The_Journalbiz (@the_journalbiz) May 15, 2023

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The biotech company’s shares were up 25%, after a panel of outside experts voted 8-to-6 to recommend approval of Sarepta’s gene therapy on Friday afternoon.

The drug, known as SRP-9001, treats patients with Duchenne muscular dystrophy. Analysts are projecting nearly $4 billion in annual sales of SRP-9001 by 2026.

A final decision from the FDA is expected by the end of the month. The agency is not bound by the recommendations of outside experts, but usually follows them.

Sarepta shares are up about 16% so far this year, including today’s gains.