Sarepta Therapeutics (NASDAQ:SRPT) stock is taking a beating on Thursday following reports that the Food and Drug Administration (FDA) was considering rejecting one of its drugs.
According to these reports, regulators at the FDA were originally planning to reject the company’s request for approval of SRP-9001. This is a treatment developed by the company for Duchenne muscular dystrophy.
The reports claim that the only reason this didn’t happen was Dr. Peter Marks stepping in. He’s the head of the FDA’s biologics group. Marks suggested that an AdCom meeting be held for the drug before rejection.
While that has allegedly held off the rejection of SRP-9001, investors in SRPT stock are still worried. That meeting is set to take place on May 12, which means investors will want to keep an ear out for news about the drug after that.
How This Affects SRPT Stock
The idea that one of the company’s drugs could be rejected is a major blow to SRPT stock. That makes sense as companies put a lot of resources, including time and money, into medical developments. Keeping that in mind, it’s no surprise that investors in Sarepta Therapeutics are rattled today.
However, that hasn’t led to heavy trading yet. Only about 566,000 shares of the stock have changed hands so far today. For comparison, the company’s daily average trading volume is about 1.4 million shares.
SRPT stock is down 11.8% as of Thursday morning.
Investors can learn more about the latest stock market news today below!
We’ve got all of the hottest stock market stories worth reading about on Thursday! A few examples include why shares of Warner Bros Discovery (NASDAQ:WBD), Sportsman’s Warehouse (NASDAQ:SPWH), and GlucoTrack (NASDAQ:GCTK) stock are moving today. We’ve got all of that news ready to go at the following links!
More Thursday Stock Market News
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
