CAMBRIDGE, Mass.–Sarepta Therapeutics reported a narrower net loss for the third quarter of 2026 and raised the lower end of its full-year revenue guidance, citing strong sales of its Duchenne muscular dystrophy treatments as the company prepares to advance two experimental therapies for rare neuromuscular diseases into potential late-stage clinical development.
The biotechnology company reported third-quarter revenue of $381.4 million, down 5% from $399.4 million in the same period last year. Its net loss narrowed to $28.5 million, or 27 cents per diluted share, compared with a loss of $50.6 million, or 50 cents per share, a year earlier.
Sarepta’s operating loss declined to $9 million from $103.4 million in the third quarter of 2025. On a non-GAAP basis, the company reported operating income of $22.9 million, compared with an operating loss of $35.7 million a year earlier.
Non-GAAP net income reached $15.6 million, or 13 cents per diluted share, compared with a net loss of $12.9 million, or 13 cents per share, in the prior-year period.
Net product revenue totaled approximately $323.8 million, including $240.3 million from the company’s phosphorodiamidate morpholino oligomer (PMO) treatments and $83.5 million from ELEVIDYS, its gene therapy for Duchenne muscular dystrophy.
Sarepta ended the quarter with approximately $998.7 million in cash, cash equivalents, restricted cash and investments, providing financial resources to support its clinical development programs.
Michael Severino, M.D., Chief Executive Officer of Sarepta Therapeutics, said the company’s commercial performance and financial position would support continued investment in its pipeline.
“After my first 90 days at Sarepta, I believe the fundamental strengths that attracted me to the company remain firmly intact: a durable Duchenne franchise, a promising pipeline with the potential to deliver differentiated medicines, and the financial strength to invest in our highest-value opportunities,” Severino said.
“This quarter, we saw continued strength in our commercial execution. Our upcoming DM1 and FSHD datasets are important opportunities to demonstrate the depth of knockdown and downstream biological effects we believe our platform can achieve. We are already preparing both programs for potential late-stage development with the intent of moving efficiently if the results support advancement. We have work to do, and I want us to be measured by execution, but I believe Sarepta has the commercial foundation, pipeline opportunities and financial strength to deliver meaningful long-term value.”
The company expects to report multiple ascending dose data from two investigational treatments, SRP-1003 and SRP-1001, during the fourth quarter of 2026.
SRP-1003 is being developed for myotonic dystrophy type 1 (DM1), a genetic disorder that causes progressive muscle weakness and affects multiple organ systems. SRP-1001 targets facioscapulohumeral muscular dystrophy (FSHD), a genetic condition characterized by progressive muscle weakness, particularly in the face, shoulders and upper arms.
The upcoming clinical results are expected to provide information about the therapies’ ability to suppress disease-associated genetic activity and produce measurable biological effects.
For SRP-1003, researchers will evaluate reductions in DMPK RNA and the correction of abnormal RNA splicing associated with DM1. The SRP-1001 program will assess suppression of DUX4, a protein implicated in the development of FSHD.
Sarepta said it has begun preparing both programs for potential Phase 3 clinical trials, including the manufacturing of clinical supplies.
The company is evaluating both accelerated and traditional regulatory approval pathways, with future development strategies dependent on clinical findings and discussions with the U.S. Food and Drug Administration.
Sarepta also highlighted new preclinical findings for SRP-1003 presented at the 2026 Oligonucleotide Therapeutics Society Annual Meeting.
The research demonstrated dose-dependent reductions in disease-associated DMPK messenger RNA in both the nucleus and cytoplasm of cells.
Researchers used three independent methods to confirm the treatment’s activity within the nucleus. Improvements in abnormal RNA splicing provided additional evidence that the therapy could target disease-causing RNA.
The company also presented new clinical and biomarker findings involving ELEVIDYS at the 2026 World Muscle Society Annual Congress.
Data from ambulatory patients who received the gene therapy between ages 8 and 12 showed sustained improvements in measures of motor function over two years compared with a matched external control group, according to Sarepta.
The assessments included the North Star Ambulatory Assessment and timed functional tests used to evaluate disease progression in patients with Duchenne muscular dystrophy.
Additional findings from children treated at ages 2 and 3 demonstrated expression of ELEVIDYS-associated dystrophin protein and its localization within muscle cell membranes 12 weeks after treatment.
At the Annual Neuromuscular Study Group Scientific Meeting, Sarepta presented preliminary findings from its Phase 4 ENDURE study, which is examining approaches to reducing liver-related safety risks associated with ELEVIDYS.
The company said the growing body of clinical, biomarker and real-world evidence supports continued evaluation of the treatment’s benefits and risks.
Sarepta also updated its financial outlook for the remainder of 2026.
The company raised the lower end of its full-year net product revenue guidance by $50 million and now expects revenue between $1.25 billion and $1.3 billion, reflecting stronger performance from its PMO treatment portfolio.
It also reduced the upper end of its projected combined non-GAAP research and development and selling, general and administrative expenses by $25 million. Those expenses are now expected to total between $800 million and $825 million for the year.
Fourth-quarter ELEVIDYS revenue is expected to remain approximately in line with the third quarter, although the company noted that sales of a one-time gene therapy can fluctuate.
Sarepta said its existing commercial operations and financial resources should support the advancement of its DM1 and FSHD programs through late-stage development while maintaining spending discipline.
The company’s near-term research priorities will focus on evaluating the upcoming clinical data from SRP-1003 and SRP-1001 and determining whether the findings support progression into Phase 3 trials.
