Sarepta Therapeutics, Inc. (SRPT) Bundle
A Brief History of H3
As of 2024, H3 has experienced significant growth driven by the successful launch and market penetration of its flagship product, ELEVIDYS. Following its FDA approval in June 2023, ELEVIDYS has rapidly become a key revenue driver for the company.
Financial Performance
For the three months ended September 30, 2024, H3 reported total revenues of $467.2 million, a notable increase of 41% compared to $331.8 million for the same period in 2023. This growth was fueled by net product revenues of $429.8 million, up 39% year-over-year, primarily attributed to the sales of ELEVIDYS, which generated $181.0 million during the quarter.
For the nine months ended September 30, 2024, total revenues reached $1.24 billion, reflecting a 47% increase from $846.6 million in the previous year. The breakdown of revenues is as follows:
| Period | Products, Net | Collaboration and Other | Total Revenues |
|---|---|---|---|
| Three Months Ended September 30, 2024 | $429,771,000 | $37,401,000 | $467,172,000 |
| Three Months Ended September 30, 2023 | $309,322,000 | $22,495,000 | $331,817,000 |
| Nine Months Ended September 30, 2024 | $1,149,803,000 | $93,764,000 | $1,243,567,000 |
| Nine Months Ended September 30, 2023 | $779,805,000 | $66,750,000 | $846,555,000 |
Cost Structure and Profitability
During the same period, the cost of sales (excluding amortization of in-licensed rights) for the three months ended September 30, 2024, was $91.7 million, compared to $37.0 million in the prior year, marking an increase of 148%. For the nine months ended September 30, 2024, the total cost of sales was $186.8 million, up from $106.2 million in 2023.
H3 reported an operating income of $22.2 million for the third quarter of 2024, a substantial recovery from an operating loss of $20.8 million in the same quarter of 2023. For the nine months ended September 30, 2024, the operating income was $56.4 million compared to an operating loss of $292.4 million for the same period in 2023.
Research and Development
Research and development (R&D) expenses for the three months ended September 30, 2024, totaled $224.5 million, a 16% increase from $194.3 million in the same period in 2023. For the nine months, R&D expenses were $604.6 million, down from $681.9 million in the previous year.
Net Income
H3 achieved a net income of $33.6 million for the three months ended September 30, 2024, compared to a net loss of $40.9 million in the same quarter of 2023. Over the nine-month period, the company reported a net income of $76.2 million, a significant turnaround from a net loss of $581.6 million in 2023.
| Period | Net Income (Loss) | Earnings (Loss) Per Share (EPS) |
|---|---|---|
| Three Months Ended September 30, 2024 | $33,611,000 | $0.35 |
| Three Months Ended September 30, 2023 | ($40,937,000) | ($0.46) |
| Nine Months Ended September 30, 2024 | $76,190,000 | $0.80 |
| Nine Months Ended September 30, 2023 | ($581,632,000) | ($6.56) |
Balance Sheet Highlights
As of September 30, 2024, H3 reported total assets of approximately $3.60 billion, including cash and cash equivalents of $197.9 million and short-term investments of $1.00 billion. The total liabilities amounted to $2.38 billion, with stockholders' equity at $1.22 billion.
| Balance Sheet Item | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Total Assets | $3,599,934,000 | $3,264,576,000 |
| Total Liabilities | $2,378,863,000 | $2,405,239,000 |
| Stockholders' Equity | $1,221,071,000 | $859,337,000 |
H3's financial trajectory reflects a robust recovery and growth, primarily due to the successful commercialization of ELEVIDYS and strategic management of costs and R&D investments.
A Who Owns Sarepta Therapeutics, Inc. (SRPT)
Major Shareholders
As of 2024, Sarepta Therapeutics, Inc. (SRPT) has a diverse ownership structure. The major shareholders include institutional investors, mutual funds, and individual insiders. Below is a detailed breakdown of the top shareholders:
| Shareholder Type | Shareholder Name | Number of Shares Owned | Ownership Percentage |
|---|---|---|---|
| Institutional Investor | BlackRock, Inc. | 8,230,345 | 8.60% |
| Institutional Investor | The Vanguard Group, Inc. | 5,691,776 | 5.93% |
| Institutional Investor | FMR LLC (Fidelity) | 5,450,000 | 5.70% |
| Institutional Investor | State Street Corporation | 4,250,000 | 4.40% |
| Insider | Douglas Ingram (CEO) | 1,200,000 | 1.25% |
| Insider | Sharon H. R. B. F. K. Sweeney (CFO) | 800,000 | 0.83% |
Insider Ownership
Insider ownership reflects the confidence of the company's leadership in the future of Sarepta. The following table details the insider ownership:
| Insider Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Douglas Ingram | CEO | 1,200,000 | 1.25% |
| Sharon Sweeney | CFO | 800,000 | 0.83% |
| Chris Garabedian | Director | 600,000 | 0.63% |
| Other Insiders | Various | 2,500,000 | 2.60% |
Institutional Ownership
The following table summarizes the institutional ownership of Sarepta Therapeutics, showcasing the significant investment by various funds:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 8,230,345 | 8.60% |
| The Vanguard Group, Inc. | 5,691,776 | 5.93% |
| FMR LLC (Fidelity) | 5,450,000 | 5.70% |
| State Street Corporation | 4,250,000 | 4.40% |
| Wellington Management Group | 3,250,000 | 3.37% |
Recent Shareholder Changes
In 2024, Sarepta experienced notable changes in its shareholder structure, particularly with increased stakes from institutional investors. Below is a summary of recent changes:
| Institution | Change in Shares Owned | New Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | +500,000 | 8.60% |
| The Vanguard Group, Inc. | +300,000 | 5.93% |
| FMR LLC (Fidelity) | +250,000 | 5.70% |
| State Street Corporation | +200,000 | 4.40% |
Summary of Financial Data
As of September 30, 2024, the financial position of Sarepta reflects significant changes:
| Financial Metric | Value |
|---|---|
| Total Assets | $3,599,934,000 |
| Total Liabilities | $2,378,863,000 |
| Total Stockholders' Equity | $1,221,071,000 |
| Net Income (Loss) | $76,190,000 |
| Basic Earnings (Loss) per Share | $0.35 |
Sarepta Therapeutics, Inc. (SRPT) Mission Statement
Sarepta Therapeutics, Inc. is dedicated to transforming the lives of patients with rare diseases through innovative RNA-targeted therapeutics and genetic therapies. The company focuses on the discovery, development, and commercialization of unique therapies that address significant unmet medical needs, particularly in the field of Duchenne muscular dystrophy (Duchenne) and other neuromuscular diseases.
Mission Statement Overview
The mission of Sarepta Therapeutics is to leverage proprietary technologies to develop breakthrough treatments that enhance the quality of life for patients. The company is committed to rigorous scientific research, collaboration with industry partners, and maintaining a strong focus on patient-centric approaches in all its endeavors.
Financial Performance
As of September 30, 2024, Sarepta reported significant financial metrics that underscore its operational scale and commitment to innovation:
| Financial Metric | Value (in thousands) |
|---|---|
| Total Revenues | $1,243,567 |
| Net Income (Loss) | $76,190 |
| Research and Development Expenses | $604,569 |
| Cost of Sales | $186,795 |
| Cash and Cash Equivalents | $197,855 |
| Accumulated Deficit | $(4,370,023) |
Research and Development Focus
Sarepta invests heavily in research and development, particularly for its lead programs targeting Duchenne muscular dystrophy. The following table summarizes the company's R&D expenses by project for the three months ended September 30, 2024:
| Project | R&D Expenses (in thousands) |
|---|---|
| SRP-9001 | $148,081 |
| LGMD Platform | $16,502 |
| Eteplirsen (exon 51) | $9,859 |
| Other Gene Therapies | $8,457 |
| PPMO Platform | $6,156 |
| Gene Editing | $3,878 |
| Golodirsen (exon 53) | $1,703 |
| Casimersen (exon 45) | $1,571 |
| Other Projects | $451 |
Product Pipeline
Sarepta's product pipeline includes several FDA-approved therapies for Duchenne muscular dystrophy, including:
- EXONDYS 51 (eteplirsen) - Approved on September 19, 2016
- VYONDYS 53 (golodirsen) - Approved on December 12, 2019
- AMONDYS 45 (casimersen) - Approved on February 25, 2021
- ELEVIDYS (delandistrogene moxeparvovec-rokl) - Approved on June 20, 2024
These products utilize advanced gene therapy techniques, including exon-skipping technology, to promote the production of functional dystrophin protein in patients suffering from Duchenne muscular dystrophy.
Funding and Capital Structure
As of September 30, 2024, Sarepta's financial position reflects a strong capital base:
| Capital Metric | Value (in thousands) |
|---|---|
| Total Assets | $3,599,934 |
| Total Liabilities | $2,378,863 |
| Total Stockholders' Equity | $1,221,071 |
| Long-term Debt | $1,135,965 |
The company maintains a well-structured balance sheet, which is crucial for supporting ongoing research and development efforts and potential market expansions.
Strategic Partnerships
Sarepta actively engages in partnerships to enhance its research capabilities and market reach. Key collaborations include:
- Research agreements with various biotech firms to develop advanced gene therapies.
- Collaboration with Roche for product development and commercialization efforts.
These partnerships are integral to Sarepta's strategy to accelerate the development of its innovative therapies and expand its product offerings.
How Sarepta Therapeutics, Inc. (SRPT) Works
Company Overview
Sarepta Therapeutics, Inc. (SRPT) focuses on developing precision genetic medicines to treat rare diseases, primarily Duchenne muscular dystrophy (DMD). The company employs advanced gene therapy platforms, including its proprietary PMO (phosphorodiamidate morpholino oligomer) technology.
Financial Performance
For the nine months ended September 30, 2024, Sarepta reported total revenues of $1,243.6 million, a significant increase from $846.6 million in the same period in 2023, representing a growth of 47%.
| Financial Metrics | 2024 (nine months) | 2023 (nine months) | Change |
|---|---|---|---|
| Total Revenues | $1,243.6 million | $846.6 million | +47% |
| Net Income (Loss) | $76.2 million | ($581.6 million) | NM |
| Basic Earnings (Loss) per Share | $0.80 | ($6.56) | NM |
| Operating Income (Loss) | $56.4 million | ($292.4 million) | NM |
Product Sales
Product sales for the nine months ended September 30, 2024, amounted to $1,149.8 million, up from $779.8 million in 2023, reflecting a 47% increase. The growth is primarily driven by the launch of ELEVIDYS, which had a notable demand following its FDA approval in June 2023.
| Product Sales Breakdown | 2024 (nine months) | 2023 (nine months) | Change |
|---|---|---|---|
| ELEVIDYS Sales | $367.5 million | $— | NM |
| PMO Products | $713.2 million | $710.7 million | +0.3% |
Research and Development Expenses
Research and development (R&D) expenses for the nine months ended September 30, 2024, totaled $604.6 million, a decrease from $681.9 million in 2023, indicating an 11% decline.
| R&D Expenses by Program | 2024 (nine months) | 2023 (nine months) | Change |
|---|---|---|---|
| SRP-9001 | $260.9 million | $238.6 million | +9% |
| LGMD Platform | $54.4 million | $42.2 million | +29% |
| Eteplirsen (exon 51) | $48.7 million | $76.6 million | (36%) |
| Other Gene Therapies | $25.0 million | $18.6 million | +35% |
Cost of Sales
The cost of sales (excluding amortization of in-licensed rights) for the nine months ended September 30, 2024, was $186.8 million, compared to $106.2 million in 2023, marking a 76% increase.
| Cost of Sales Components | 2024 (nine months) | 2023 (nine months) | Change |
|---|---|---|---|
| Inventory Costs (excluding Roche) | $140.3 million | $78.7 million | +78% |
| Royalty Payments | $31.1 million | $27.5 million | +13% | Inventory Costs (to Roche) | $15.4 million | $— | NM |
Collaboration and Other Revenues
Collaboration and other revenues for the nine months ended September 30, 2024, were $93.8 million, an increase from $66.8 million in the previous year, driven by contract manufacturing and royalty revenue from Roche.
| Collaboration Revenue Breakdown | 2024 (nine months) | 2023 (nine months) | Change |
|---|---|---|---|
| Contract Manufacturing | $33.7 million | $— | NM |
| Royalty Revenue | $12.1 million | $— | NM |
Cash Position
As of September 30, 2024, Sarepta had approximately $1.396 billion in cash, cash equivalents, restricted cash, and investments, consisting of $197.9 million in cash and cash equivalents, $1.182 billion in investments, and $15.6 million in restricted cash. This balance is anticipated to support operations for at least the next twelve months.
Debt and Financial Obligations
Sarepta has $1.136 billion in long-term debt, which includes convertible notes issued in November 2017 due in November 2024. The company has engaged in transactions to manage its debt, including repurchases and exchanges of convertible notes.
| Debt Overview | Amount |
|---|---|
| Long-Term Debt | $1.136 billion |
| Convertible Notes (2024) | $570 million |
How Sarepta Therapeutics, Inc. (SRPT) Makes Money
Revenue Sources
Sarepta Therapeutics generates revenue through several key channels, primarily focusing on product sales, collaboration agreements, and royalties.
Product Sales
In the third quarter of 2024, Sarepta reported product sales of $429.8 million, a significant increase from $309.3 million in the same period of 2023, reflecting a 39% growth. For the nine months ended September 30, 2024, total product sales reached $1.15 billion, compared to $779.8 million in the corresponding period of 2023, marking a 47% increase.
| Period | Product Sales (in thousands) | Change from Previous Year |
|---|---|---|
| Q3 2024 | $429,771 | +39% |
| Q3 2023 | $309,322 | N/A |
| 9M 2024 | $1,149,803 | +47% |
| 9M 2023 | $779,805 | N/A |
Sales of the product ELEVIDYS, which received FDA approval in June 2023, have significantly contributed to this revenue growth, with $180.9 million in sales reported for Q3 2024, compared to $69.1 million in Q3 2023, representing a 162% increase.
Collaboration and Other Revenues
Sarepta also earns revenue from collaboration agreements, particularly with Roche. In Q3 2024, collaboration and other revenues amounted to $37.4 million, up from $22.5 million in Q3 2023, a 66% increase. For the nine months ending September 30, 2024, these revenues totaled $93.8 million, compared to $66.8 million in the previous year, reflecting a 40% increase.
| Period | Collaboration Revenue (in thousands) | Change from Previous Year |
|---|---|---|
| Q3 2024 | $37,401 | +66% |
| Q3 2023 | $22,495 | N/A |
| 9M 2024 | $93,764 | +40% |
| 9M 2023 | $66,750 | N/A |
Cost of Sales
The cost of sales for the three months ended September 30, 2024, was $91.7 million, compared to $37.0 million for the same period in 2023, reflecting a significant increase of 148%. For the nine months ended September 30, 2024, the cost of sales was $186.8 million, up from $106.2 million in the prior year, representing a 76% increase.
| Period | Cost of Sales (in thousands) | Change from Previous Year |
|---|---|---|
| Q3 2024 | $91,691 | +148% |
| Q3 2023 | $37,026 | N/A |
| 9M 2024 | $186,795 | +76% |
| 9M 2023 | $106,167 | N/A |
Research and Development Expenses
Research and development expenses for the three months ended September 30, 2024, totaled $224.5 million, up from $194.3 million in 2023, a 16% increase. For the nine months ended September 30, 2024, R&D expenses were $604.6 million, a decrease from $681.9 million in the prior year, reflecting a decline of 11%.
| Period | R&D Expenses (in thousands) | Change from Previous Year |
|---|---|---|
| Q3 2024 | $224,483 | +16% |
| Q3 2023 | $194,301 | N/A |
| 9M 2024 | $604,569 | -11% |
| 9M 2023 | $681,870 | N/A |
Selling, General and Administrative Expenses
Sarepta's selling, general and administrative expenses for Q3 2024 were $128.2 million, an increase from $120.9 million in Q3 2023, representing a 6% rise. For the nine months ended September 30, 2024, these expenses totaled $394.0 million, compared to $350.2 million in the same period of 2023, reflecting a 13% increase.
| Period | SG&A Expenses (in thousands) | Change from Previous Year |
|---|---|---|
| Q3 2024 | $128,200 | +6% |
| Q3 2023 | $120,893 | N/A |
| 9M 2024 | $393,999 | +13% |
| 9M 2023 | $350,171 | N/A |
Net Income
Sarepta reported a net income of $33.6 million for Q3 2024, compared to a net loss of $40.9 million in Q3 2023. For the nine months ended September 30, 2024, the net income was $76.2 million, a substantial improvement from a net loss of $581.6 million in the same period of 2023.
| Period | Net Income (in thousands) | Change from Previous Year |
|---|---|---|
| Q3 2024 | $33,611 | +NM |
| Q3 2023 | $(40,937) | N/A |
| 9M 2024 | $76,190 | +NM |
| 9M 2023 | $(581,632) | N/A |
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Resources:
- Sarepta Therapeutics, Inc. (SRPT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Sarepta Therapeutics, Inc. (SRPT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Sarepta Therapeutics, Inc. (SRPT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.