Sarepta Therapeutics, Inc.
For the period ended Jun 30, 2026. Filed Aug 5, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 5, 2026
SRPT$17.82+1.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-06.
0001193125-26-208893
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-05.
0001193125-26-335003
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 167 previous paragraphs and 204 current paragraphs.
87 unchanged; 71 reworded; 37 added; 9 removed; 0 previous and 9 current paragraphs rearranged.
Tables are not compared: 9 previous and 16 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (37)
Current report
SRP-1005 (HTT). HTT is a rare and ultimately fatal inherited neurodegenerative disorder which is passed down from generation to generation within affected families. HTT is caused by a mutation in the gene for a protein called huntingtin, which leads to progressive deterioration of nerve cells in the brain, affecting cognition, movement, and behavior. Study SRP-1005-101 (INSIGHTT) is a Phase 1, multi-center, dose escalation study that will evaluate the safety and tolerability of subcutaneous dosing of SRP-1005 in approximately 24 participants. SRP-1005 leverages an advanced TfR1 (transferrin receptor protein 1) approach that uses monovalent fragment antigen binding (fAb) designed for efficient delivery to the central nervous system. Subcutaneous administration is intended to avoid saturating the transferrin receptor and achieve constant and robust penetration across the blood brain barrier. During the second quarter of 2026, we enrolled the first patient in the study.
Current report
Collaboration and other revenues for the three months ended June 30, 2026 decreased by $25.4 million, or 26%, compared with the three months ended June 30, 2025. The decrease was primarily driven by the following:
Current report
$27.4 million increase in contract manufacturing revenue primarily driven by increased deliveries of ELEVIDYS to Roche and increases in our manufacturing costs driven by greater-than-expected write-offs of batches of our products not meeting our quality specifications;
Current report
$10.0 million increase in license revenue related to the grant of intellectual property rights under a certain license agreement executed during the three months ended June 30, 2026, with no similar activity during the same period in 2025; and
Current report
$63.5 million decrease in collaboration revenue due to the recognition of milestone payments during the three months ended June 30, 2025 under the Roche Collaboration Agreement for the regulatory approval of ELEVIDYS in Japan (the “Japan Approval Milestone”) with no similar activity during the three months ended June 30, 2026. Please refer to Note 3, License and Collaboration Agreementsfor further discussion of the Japan Approval Milestone.
Current report
Collaboration and other revenues for the six months ended June 30, 2026 increased by $241.5 million, or 104%, compared with the six months ended June 30, 2025. The increase was primarily driven by the following:
Current report
$41.1 million increase in contract manufacturing revenue primarily driven by increased deliveries of ELEVIDYS to Roche and increases in our manufacturing costs driven by greater-than-expected write-offs of batches of our products not meeting our quality specifications; and
Current report
$10.0 million increase in license revenue related to the grant of intellectual property rights under a certain license agreement executed during the six months ended June 30, 2026, with no similar activity during the same period in 2025.
Current report
The cost of sales (excluding amortization of in-licensed rights) for the three months ended June 30, 2026 decreased by $3.2 million, or 2%, compared with the same period in 2025. The decrease was primarily driven by the following:
Current report
$35.8 million decrease in product cost of sales (excluding Roche) primarily due to decreased ELEVIDYS sales volume, reflecting changes in demand following the safety events that occurred in 2025 and subsequent label update for ELEVIDYS which included only the ambulatory patient population for treatment as well as a lower allocation of costs to us associated with batches of ELEVIDYS not meeting our quality specifications, partially offset by an increase in batches of our PMO Products not meeting our quality specifications;
Current report
$36.4 million increase in Roche product cost of sales primarily due to the timing of allocation of costs to Roche associated with write-offs of certain batches of ELEVIDYS not meeting our quality specifications, scrapped and expired materials and the volume of ELEVIDYS shipments under the Roche Collaboration Agreement; and
Current report
$3.8 million decrease in royalty payments primarily corresponding to the decreased ELEVIDYS sales volume in the U.S.
Current report
The cost of sales (excluding amortization of in-licensed rights) for the six months ended June 30, 2026 decreased by $32.0 million, or 11%, compared with the same period in 2025. The decrease was primarily driven by the following:
Current report
$84.6 million decrease in product cost of sales (excluding Roche) primarily due to decreased ELEVIDYS sales volume, reflecting changes in demand following the safety events that occurred in 2025 and subsequent label update for ELEVIDYS which included only the ambulatory patient population for treatment as well as a lower allocation of costs to us associated with batches of ELEVIDYS not meeting our quality specifications, partially offset by an increase in batches of our PMO Products not meeting our quality specifications;
Current report
$63.9 million increase in Roche product cost of sales primarily due to the timing of allocation of costs to Roche associated with write-offs of certain batches of ELEVIDYS not meeting our quality specifications, scrapped and expired materials and the volume of ELEVIDYS shipments under the Roche Collaboration Agreement; and
Current report
$11.2 million decrease in royalty payments primarily corresponding to the decreased ELEVIDYS sales volume in the U.S.
Current report
Research and development expenses for the three months ended June 30, 2026 decreased by $113.1 million, or 55%, compared with the three months ended June 30, 2025. The decrease was primarily driven by the following:
Current report
$17.8 million decrease in compensation and other personnel expenses primarily due to reduced headcount pursuant to the Restructuring;
Current report
$78.8 million decrease in manufacturing expenses primarily due to fewer clinical batches released for our SRP-9001 and LGMD programs as a result of our Pipeline Reprioritization, as well as our settlement agreement with Brammer Bio MA, LLC (“Brammer”) to resolve outstanding claims related to the termination of the Thermo Agreement (the “Brammer Settlement”) during the three months ended June 30, 2025, with no similar activity in 2026;
Current report
Research and development expenses for the six months ended June 30, 2026 decreased by $732.6 million, or 75%, compared with the six months ended June 30, 2025. The decrease was primarily driven by the following:
Current report
$39.0 million decrease in compensation and other personnel expenses primarily due to reduced headcount pursuant to the Restructuring;
Current report
$13.8 million decrease in stock-based compensation primarily related to reduced headcount pursuant to the Restructuring and the vesting of certain PSUs in March 2025 and March 2026;
Current report
$1.6 million decrease in pre-clinical expenses primarily due to the Pipeline Reprioritization;
Current report
$11.3 million decrease in compensation and other personnel expenses primarily due to reduced headcount pursuant to the Restructuring;
Current report
Selling, general and administrative expenses for the six months ended June 30, 2026 decreased by $55.0 million, or 20%, compared with the six months ended June 30, 2025. This decrease was primarily driven by the following:
Current report
$21.3 million decrease in compensation and other personnel expenses primarily due to reduced headcount pursuant to the Restructuring;
Current report
$10.8 million decrease in stock-based compensation primarily related to reduced headcount pursuant to the Restructuring and the vesting of certain PSUs in March 2025 and March 2026, partially offset by expense recognized for RSUs granted to our CEO in December 2025;
Current report
$2.0 million increase in facility- and technology-related expenses primarily related to the utilization of our Bedford, Massachusetts facility, which was placed into service in June 2025; and
Current report
Litigation contingency charge
Current report
During the three and six months ended June 30, 2026, we recorded a litigation contingency charge of $39.0 million related to the potential resolution of certain patent litigations. Following the parties' agreement in principle and based on management's assessment of the available information, we determined that a loss was probable and estimable as of June 30, 2026 and recognized our best estimate of the liability. The potential settlement remains outstanding subject to further negotiation and execution of definitive documentation as of the issuance of these unaudited condensed consolidated financial statements.
Current report
Other (expense) income, net
Current report
Income tax expense (benefit)
Current report
$11.6 million in write-downs for obsolete inventory; and
Current report
$21.4 million decrease in accounts receivable primarily due to a decrease in demand for our products from year-end;
Current report
$236.5 million increase in inventory primarily due to a continuing build-up of ELEVIDYS inventory as a result of label expansion of the therapy in June 2024;
Current report
$37.3 million increase in other assets primarily due to an increase in receivables from Roche associated with contract manufacturing revenue;
Current report
$20.2 million increase in accrued expenses primarily due to increased revenue-related accruals related to increased product revenue, partially offset by payments on accrued employee compensation costs and timing of payments to our CMOs related to manufacturing commitments;
Removed paragraphs (9)
Previous report
The cost of sales (excluding amortization of in-licensed rights) for the three months ended March 31, 2026 decreased by $28.8 million, or 21%, compared with the same period in 2025. The decrease was primarily driven by lower ELEVIDYS sales volume, reflecting changes in demand following the safety events that occurred in 2025 and subsequent label update for ELEVIDYS which included only the ambulatory patient population for treatment. This decrease was partially offset by increases in (1) scrapped and expired materials, (2) the volume of ELEVIDYS shipments under the Roche Collaboration Agreement and (3) the write-offs of certain batches of our products not meeting our quality specifications, a portion of which was allocated to Roche product cost of sales.
Previous report
Research and development expenses for the three months ended March 31, 2026 decreased by $619.5 million, or 80%, compared with the three months ended March 31, 2025. The decrease was primarily driven by the following:
Previous report
$21.2 million decrease in compensation and other personnel expenses primarily due to reduced headcount pursuant to the Restructuring;
Previous report
$10.0 million decrease in compensation and other personnel expenses primarily due to reduced headcount pursuant to our Restructuring;
Previous report
Other expense, net
Previous report
Income tax expense
Previous report
$3.4 million decrease in accounts receivable primarily due to the timing of PMO sales and collections, partially offset by the timing of ELEVIDYS shipments.
Previous report
$177.4 million increase in inventory primarily due to a ramp-up of manufacturing corresponding to an increase in demand for ELEVIDYS;
Previous report
$31.7 million increase in accrued expense primarily due to the timing of payment for the annual fee on our Revolving Credit Facility; and
Reworded paragraphs (71)
Previous wording
our expectation that our partnerships with manufacturers will support our clinical and commercial manufacturing capacity for our products and product candidates, including our PMO, gene therapy, SRP-9003 Limb-girdle muscular dystrophy (“LGMD”), and small interfering RNA (“siRNA”) programs, while also acting as a manufacturing platform for potential future programs, and our belief that our current network of manufacturing partners is able to fulfill the requirements of our commercial plan;
Current wording
our expectation that our partnerships with manufacturers will support our clinical and commercial manufacturing capacity for our products and product candidates, including our phosphorodiamidate morpholino oligomer (“PMO”), gene therapy, SRP-9003 Limb-girdle muscular dystrophy (“LGMD”), and small interfering RNA (“siRNA”) programs, while also acting as a manufacturing platform for potential future programs, and our belief that our current network of manufacturing partners is able to fulfill the requirements of our commercial plan;
Previous wording
the possible impacts of the results of our ESSENCE confirmatory trial for VYONDYS and AMONDYS, including the timing and outcome of additional results, potential regulatory actions from the FDA, including directives to remove these products from the market or alter labels, patient demand for these products and changes to reimbursement and coverage by insurance companies;
Current wording
the possible impacts of the results of our ESSENCE confirmatory trial for VYONDYS 53 and AMONDYS 45, including the timing and outcome of additional results, potential regulatory actions from the FDA, including directives to remove these products from the market or alter labels, patient demand for these products and changes to reimbursement and coverage by insurance companies;
Previous wording
the estimated and potential impacts of the strategic restructuring plan announced in July 2025 ("the Restructuring");
Current wording
the estimated and potential impacts of the strategic restructuring plan announced in July 2025;
Previous wording
estimated timelines and milestones for the remainder of 2026 and beyond, including discussions with the FDA regarding ELEVIDYS, VYONDYS 53, AMONDYS 45 and SRP-9003, and sharing data for certain of the Company's siRNA product candidates, SRP-1001 and SRP-1003;
Current wording
estimated timelines and milestones for the remainder of 2026 and beyond, including discussions with the FDA regarding ELEVIDYS, VYONDYS 53, AMONDYS 45 and SRP-9003, and sharing data for certain of our siRNA product candidates, SRP-1001 and SRP-1003;
Previous wording
our plan to continue building out our network for commercial distribution in jurisdictions in which our products are approved or in which we are seeking approval for our products;
Current wording
our ability to maintain, and our plan to continue building out our distribution network for in jurisdictions in which our products are approved or in which we are seeking to make our products available, commercially or through our EAP (as defined herein);
Previous wording
our expectation regarding the outcomes or impacts of our ongoing litigation that we are currently, or may in the future become, party to;
Current wording
our expectation regarding the outcomes or impacts of our ongoing litigations that we are currently, or may in the future become, party to;
Previous wording
our expectation regarding our ability to satisfy the conditions to borrow under our Credit Agreement; and
Current wording
our expectation regarding our ability to satisfy the conditions to borrow under our Credit Agreement (defined below); and
Previous wording
We are a commercial-stage biopharmaceutical company focused on helping patients through the discovery and development of unique RNA-targeted therapeutics, siRNA knockdown therapies, gene therapy and other genetic therapeutic modalities for the treatment of rare diseases. Applying our proprietary, differentiated and innovative technologies, and through collaborations with our strategic partners, we have developed multiple approved products for the treatment of Duchenne and are developing potential therapeutic candidates for a broad range of diseases and disorders, including LGMD. We are also developing potential therapeutic candidates through our partnered program with Arrowhead Pharmaceuticals, Inc. ("Arrowhead"), including Facioscapulohumeral muscular dystrophy ("FSHD"), myotonic dystrophy type 1 ("DM1"), Spinocerebellar ataxia ("SCA"), Idiopathic Pulmonary Fibrosis ("IPF"), and Huntington's disease.
Current wording
We are a commercial-stage biopharmaceutical company focused on helping patients through the discovery and development of unique RNA-targeted therapeutics, siRNA knockdown therapies, gene therapy and other genetic therapeutic modalities for the treatment of rare diseases. Applying our proprietary, differentiated and innovative technologies, and through collaborations with our strategic partners, we have developed multiple approved products for the treatment of Duchenne and are developing potential therapeutic candidates for a broad range of diseases and disorders, including LGMD. We are also developing potential therapeutic candidates through our partnered program with Arrowhead Pharmaceuticals, Inc. ("Arrowhead"), including Facioscapulohumeral muscular dystrophy ("FSHD"), myotonic dystrophy type 1 ("DM1"), Spinocerebellar ataxia ("SCA"), and Huntington's disease ("HTT").
Previous wording
We are in the process of conducting various clinical trials for our approved products, including studies that are required to comply with our post-marketing FDA requirements/commitments to verify and describe the clinical benefit of these products. In November 2025, we announced topline results from our ESSENCE trial, a confirmatory trial intended to verify the clinical benefits of two of our PMO Products: AMONDYS 45 and VYONDYS 53. The topline results did not show statistical significance on the study's primary endpoint. We intend to discuss with FDA the potential pathway forward. We are also in the process of conducting various clinical trials for ELEVIDYS, including Cohort 8 of Study 9001-103, a study to evaluate the use of sirolimus as an enhanced immunosuppression regimen as part of treatment with ELEVIDYS for non-ambulant individuals living with Duchenne. We intend to discuss with the FDA the results of this study and a potential pathway forward to resume commercial dosing in the non-ambulatory population. Resumption of dosing in the non-ambulatory population will depend on the FDA's analysis of whether the sirolimus data positively changes ELEVIDYS' risk/benefit profile and on aligning with the FDA on the process for revising the label, both of which involve risks and uncertainties. Below, when referring to manufactured inventory for commercial sale in the U.S. and ex-U.S. territories, we use the designation of ELEVIDYS, which is recognized as inventory in our unaudited condensed consolidated balance sheets. Separately, when referring to manufactured product for clinical use, such as clinical trials, we use the designation of SRP-9001, which is recognized as research and development expense in our unaudited condensed consolidated statements of comprehensive income (loss).
Current wording
We are in the process of conducting various clinical trials for our approved products, including studies that are required to comply with our post-marketing FDA requirements/commitments to verify and describe the clinical benefit of these products. In November 2025, we announced topline results from our ESSENCE trial, a confirmatory trial intended to verify the clinical benefits of two of our PMO Products: AMONDYS 45 and VYONDYS 53. The topline results did not show statistical significance on the study's primary endpoint. We intend to discuss with FDA the potential pathway forward and submitted supplemental new drug applications ("sNDAs") related to these products in April 2026, which the FDA accepted for filing in June 2026. We are also in the process of conducting various clinical trials for ELEVIDYS, including Cohort 8 of Study 9001-103 (ENDEAVOR), a study to evaluate the use of sirolimus as an enhanced immunosuppression regimen as part of treatment with ELEVIDYS for non-ambulant individuals living with Duchenne. We intend to discuss with the FDA the results of this study and a potential pathway forward to resume commercial dosing in the non-ambulatory population. Resumption of dosing in the non-ambulatory population will depend on the FDA's analysis of whether the sirolimus data positively changes ELEVIDYS' risk/benefit profile and on aligning with the FDA on the process for revising the label, both of which involve risks and uncertainties. Below, when referring to manufactured inventory for commercial sale in the U.S. and ex-U.S. territories, we use the designation of ELEVIDYS, which is recognized as inventory in our unaudited condensed consolidated balance sheets. Separately, when referring to manufactured product for clinical use, such as clinical trials, we use the designation of SRP-9001, which is recognized as research and development expense in our unaudited condensed consolidated statements of comprehensive (loss) income.
Previous wording
On July 21, 2025, we announced that the FDA placed a clinical hold on our investigational use gene therapy trials for LGMD, including our trials for product candidates SRP-9003 (LGMD2E/R4/bidridistrogene xeboparvovec), SRP-9004 (LGMD2D/patidistrogene bexoparvovec), SRP-6004 (LGMD2B/R2) and SRP-9005 (LGMD2C/R5 g-sarcoglycan), following the death of a patient in our Phase 1 LGMD clinical trial for SRP-9004. We previously announced on July 16, 2025 that we had suspended each of the LGMD programs mentioned above as part of the Restructuring, with the exception of SRP-9003. In December 2025, the FDA confirmed that we remain on clinical hold and informed us that it requires data from the study of sirolimus as an immunosuppressant before accepting a biologic license application ("BLA") for SRP-9003.We anticipate re-engaging with the agency on next steps for the program after we receive data from Cohort 8 of Study 9001-103.
Current wording
On July 21, 2025, we announced that the FDA placed a clinical hold on our investigational use gene therapy trials for LGMD, including our trials for product candidates SRP-9003 (LGMD2E/R4/bidridistrogene xeboparvovec), SRP-9004 (LGMD2D/patidistrogene bexoparvovec), SRP-6004 (LGMD2B/R2) and SRP-9005 (LGMD2C/R5 g-sarcoglycan), following the death of a patient in our Phase 1 LGMD clinical trial for SRP-9004. We previously announced on July 16, 2025 that we had suspended each of the LGMD programs mentioned above as part of the Restructuring, with the exception of SRP-9003. In December 2025, the FDA confirmed that we remain on clinical hold and informed us that it requires data from the study of sirolimus as an immunosuppressant before accepting a biologic license application ("BLA") for SRP-9003.We anticipate re-engaging with the agency on next steps for the program after we receive data from Cohort 8 of Study 9001-103 (ENDEAVOR).
Previous wording
As of March 31, 2026, we had $748.3 million of cash, cash equivalents, restricted cash and investments, consisting of $464.5 million of cash and cash equivalents, $270.7 million of investments and $13.1 million of non-current restricted cash. We believe that our balance of cash, cash equivalents and investments, along with cash inflows from operations and availability under our Revolving Credit Facility (defined below), is sufficient to fund our current operational plan for at least the next twelve months.
Current wording
As of June 30, 2026, we had $945.0 million of cash, cash equivalents, restricted cash and investments, consisting of $571.1 million of cash and cash equivalents, $362.7 million of investments and $11.2 million of non-current restricted cash and investments. We believe that our balance of cash, cash equivalents and investments, along with cash inflows from operations and availability under our Revolving Credit Facility (defined below), is sufficient to fund our current operational plan for at least the next twelve months.
Previous wording
Results of Operations for the Three Months Ended March 31, 2026 and 2025
Current wording
Results of Operations for the Three and Six Months Ended June 30, 2026 and 2025
Previous wording
The following table sets forth selected unaudited condensed consolidated statements of income (loss) data for each of the periods indicated:
Current wording
The following tables set forth selected unaudited condensed consolidated statements of (loss) income data for each of the periods indicated:
Previous wording
The following table summarizes the components of our net product revenues, by product group, for each of the periods indicated:
Current wording
The following tables summarize the components of our net product revenues, by product group, for each of the periods indicated:
Previous wording
Net product revenues for the three months ended March 31, 2026 decreased by $281.0 million, or 46%, compared with the same period in 2025. The decrease was primarily driven by lower ELEVIDYS sales volume, reflecting changes in demand following the safety events that occurred in 2025 and subsequent label update for ELEVIDYS which included only the ambulatory patient population for treatment.
Current wording
Net product revenues for the three and six months ended June 30, 2026 decreased by $184.4 million and $465.4 million compared with the same periods in 2025. The decreases were primarily driven by lower ELEVIDYS sales volume, reflecting changes in demand following the safety events that occurred in 2025 and subsequent label update for ELEVIDYS which included only the ambulatory patient population for treatment.
Previous wording
In addition, in accordance with the Roche Collaboration Agreement, the parties agreed to enter into a supply agreement in order for us to supply Roche with clinical and commercial batches of ELEVIDYS (the “Roche Supply Agreement”). Roche utilizes the supply for sales of ELEVIDYS in territories outside of the U.S. where Roche has received certain approvals for ELEVIDYS. We are eligible to receive royalties on these sales. While the Roche Supply Agreement is in the process of being negotiated, we delivered commercial ELEVIDYS supply to Roche that was agreed upon on a purchase order-by-purchase order basis. For the three months ended March 31, 2026 and 2025, we recognized $31.1 million and $17.4 million of contract manufacturing revenue, respectively, which is related to these shipments to Roche. In addition, we recognized $4.2 million and approximately $4.0 million of royalty revenue from sales of ELEVIDYS by Roche for the three months ended March 31, 2026 and 2025, respectively.
Current wording
Collaboration and other revenues primarily relate to our collaboration agreement (the “Roche Collaboration Agreement”) with F. Hoffmann-La Roche Ltd. (“Roche”). In addition, in accordance with the Roche Collaboration Agreement, the parties agreed to enter into a supply agreement in order for us to supply Roche with clinical and commercial batches of ELEVIDYS (the “Roche Supply Agreement”). Roche utilizes the supply for sales of ELEVIDYS in territories outside of the U.S. where Roche has received certain approvals for ELEVIDYS. We are eligible to receive royalties on these sales. While the Roche Supply Agreement is in the process of being negotiated, we delivered commercial ELEVIDYS supply to Roche that was agreed upon on a purchase order-by-purchase order basis. The transaction price of the contract manufacturing revenue is estimated at contract inception and reassessed annually and on an as-needed basis when additional information becomes available.
Previous wording
The following table summarizes the components of our collaboration and other revenues for the periods indicated:
Current wording
The following tables summarize the components of our collaboration and other revenues for the periods indicated:
Previous wording
Collaboration and other revenues primarily relate to our collaboration arrangement (the “Roche Collaboration Agreement”) with F. Hoffman-La Roche Ltd. (“Roche”). For the three months ended March 31, 2026 and 2025, we recognized $400.3 million and $133.3 million of collaboration and other revenues, respectively. The increase is primarily due to the $365.0 million of collaboration revenue recognized in the three months ended March 31, 2026 related to (1) $325.0 million for Roche's declined option to acquire certain program rights previously recorded as deferred revenue and (2) $40.0 million from a milestone recognized under the Roche Collaboration Agreement for the first commercial dosing of ELEVIDYS in Japan, as compared to $112.0 million of collaboration revenue recognized in the same period of 2025 related to the expiration of an option for a certain program. Please refer to Note 3, License and Collaboration Agreementsfor further discussion of the Roche Collaboration Agreement.
Current wording
$189.5 million increase in collaboration revenue due to $365.0 million of revenue recognized in the six months ended June 30, 2026 related to (1) $325.0 million for Roche's declined option to acquire certain program rights previously recorded as deferred revenue, and (2) $40.0 million from a milestone recognized under the Roche Collaboration Agreement for the first commercial dosing of ELEVIDYS in Japan, as compared to $175.5 million of collaboration revenue recognized in the same period of 2025 related to the expiration of an option for a certain program and the Japan Approval Milestone payment of $63.5 million under the Roche Collaboration Agreement;
Previous wording
For the PMO Products, all previously expensed manufacturing costs had been fully consumed by December 2022. For ELEVIDYS sold in the three months ended March 31, 2026 and March 31, 2025, a portion of related manufacturing costs incurred had previously been expensed as research and development expenses. If certain product related costs had not previously been expensed as research and development expenses prior to receiving FDA approval, the incremental inventory costs related to ELEVIDYS sold, including products sold to Roche under the Roche Collaboration Agreement, would have been $2.6 million and $13.7 million higher for the three months ended March 31, 2026 and 2025, respectively.
Current wording
For the PMO Products, all previously expensed manufacturing costs had been fully consumed by December 2022. For ELEVIDYS sold in the three and six months ended June 30, 2026 and June 30, 2025, a portion of related manufacturing costs incurred had previously been expensed as research and development expenses. If certain product related costs had not previously been expensed as research and development expenses prior to receiving FDA approval, the incremental inventory costs related to ELEVIDYS sold, including products sold to Roche under the Roche Collaboration Agreement, would have been $2.8 million and $5.4 million higher for the three and six months ended June 30, 2026, respectively, as compared to $4.5 million and $18.2 million for the three and six months ended June 30, 2025, respectively.
Previous wording
The following table summarizes the components of our cost of sales (excluding amortization of in-licensed rights) for each of the periods indicated:
Current wording
The following tables summarize the components of our cost of sales (excluding amortization of in-licensed rights) for each of the periods indicated:
Previous wording
The following table summarizes our research and development expenses by project for each of the periods indicated:
Current wording
The following tables summarize our research and development expenses by project for each of the periods indicated:
Previous wording
The following table summarizes our research and development expenses by category for each of the periods indicated:
Current wording
The following tables summarize our research and development expenses by category for each of the periods indicated:
Previous wording
$5.5 million decrease in facility- and technology-related expenses primarily as a result of our Restructuring;
Current wording
$5.9 million decrease in facility- and technology-related expenses primarily as a result of the Restructuring;
Previous wording
$7.0 million decrease in stock-based compensation primarily related to the fulfillment of remaining service conditions associated with certain PSUs in March 2025 with no similar award activity in 2026 and reduced headcount pursuant to our Restructuring;
Current wording
$6.8 million decrease in stock-based compensation primarily due to reduced headcount pursuant to the Restructuring and the completion of vesting for certain restricted stock units with performance conditions ("PSUs") in March 2026 with no similar award activity during the three months ended June 30, 2026;
Previous wording
$4.1 million decrease in research and other expenses primarily due to the Pipeline Reprioritization and ongoing cost reduction efforts; and
Current wording
$8.0 million decrease in research and other expenses primarily due to ongoing cost reduction efforts and the Pipeline Reprioritization; and
Previous wording
$20.3 million decrease in the offset to expense associated with a collaboration reimbursement from Roche primarily due to reduced SRP-9001 clinical supply as well as reduced headcount pursuant to our Restructuring resulting in lower reimbursable costs.
Current wording
$18.6 million decrease in the offset to expense associated with a collaboration reimbursement from Roche primarily due to reduced SRP-9001 clinical supply as well as reduced headcount pursuant to the Restructuring resulting in lower reimbursable costs.
Previous wording
$533.8 million decrease in up-front and collaboration license fees primarily due to the $583.6 million in payments allocated to the up-front license fee associated with our exclusive global licensing and collaboration agreement and stock purchase agreement (collectively, the “Arrowhead Agreement”) with Arrowhead recognized in the three months ended March 31, 2025, partially offset by the $50.0 million annual collaboration license fee incurred and paid to Arrowhead pursuant to the Arrowhead Agreement recognized in the three months ended March 31, 2026;
Current wording
$533.8 million decrease in up-front and collaboration license fees primarily due to the $583.6 million in payments allocated to the up-front license fee associated with our exclusive global licensing and collaboration agreement and stock purchase agreement (collectively, the “Arrowhead Collaboration Agreement”) with Arrowhead recognized during the six months ended June 30, 2025, partially offset by the $50.0 million annual collaboration license fee incurred and paid to Arrowhead pursuant to the Arrowhead Collaboration Agreement recognized during the six months ended June 30, 2026;
Previous wording
$14.8 million decrease in clinical trial expenses primarily related to the pause of several studies for our LGMD programs as a result of our Pipeline Reprioritization and the completion of certain SRP-9001 and PMO studies in 2025, resulting in less clinical trial expense for the three months ended March 31, 2026;
Current wording
$25.3 million decrease in clinical trial expenses primarily related to the pause of several studies for our LGMD programs as a result of our Pipeline Reprioritization and the completion of certain SRP-9001 and PMO studies in 2025, partially offset by increased activity in our siRNA programs;
Previous wording
$47.7 million decrease in manufacturing expenses primarily due to fewer clinical batches released for our SRP-9001 and LGMD programs as a result of our decision to reprioritize our pipeline announced in July 2025 ("Pipeline Reprioritization") and development priorities;
Current wording
$126.6 million decrease in manufacturing expenses primarily due to fewer clinical batches released for our SRP-9001 and LGMD programs as a result of the Pipeline Reprioritization, as well as the Brammer Settlement during the six months ended June 30, 2025, with no similar activity in 2026;
Previous wording
$4.5 million decrease in professional services primarily related to fewer third-party contractors used during the three months ended March 31, 2026 due to the Pipeline Reprioritization and the completion of certain SRP-9001 and PMO studies in 2025;
Current wording
$8.2 million decrease in professional services primarily related to fewer third-party contractors used during the six months ended June 30, 2026 due to the completion of certain SRP-9001 and PMO studies in 2025 and the Pipeline Reprioritization;
Previous wording
The following table summarizes our selling, general and administrative expenses by category for each of the periods indicated:
Current wording
The following tables summarize our selling, general and administrative expenses by category for each of the periods indicated:
Previous wording
Selling, general and administrative expenses for the three months ended March 31, 2026 decreased by $24.7 million, or 18%, compared with the three months ended March 31, 2025. This decrease was primarily driven by the following:
Current wording
Selling, general and administrative expenses for the three months ended June 30, 2026 decreased by $30.3 million, or 22% compared with the three months ended June 30, 2025. This decrease was primarily driven by the following:
Previous wording
$5.0 million decrease in stock-based compensation primarily related to the fulfillment of remaining service conditions associated with certain PSUs in March 2025 with no similar award activity in 2026, and reduced headcount, partially offset by three months of expense recognition for RSUs granted to our CEO in December 2025; and
Current wording
$5.8 million decrease in stock-based compensation primarily related to reduced headcount pursuant to the Restructuring and the vesting of certain PSUs in March 2026 with no similar award activity during the three months ended June 30, 2026, partially offset by expense recognized for RSUs granted to our CEO in December 2025; and
Previous wording
$2.5 million decrease in other expenses primarily related to the timing of charitable donations.
Current wording
$1.6 million decrease in other expenses primarily related to the timing of charitable donations.
Previous wording
$8.4 million decrease in professional service expenses primarily related to reduced ELEVIDYS commercialization spending following the label update for ELEVIDYS which included only the ambulatory patient population for treatment and reduced medical affairs spending related to our Pipeline Reprioritization;
Current wording
$20.7 million decrease in professional service expenses primarily related to reduced ELEVIDYS commercialization spending following the label update for ELEVIDYS which included only the ambulatory patient population for treatment, reduced legal spending driven by the settlement of a certain matter in 2025 and reduced medical affairs spending related to our Pipeline Reprioritization;
Previous wording
Amortization of in-licensed rights relates to the agreements we entered into with UWA, Nationwide, BioMarin Pharmaceutical Inc. ("BioMarin") and Parent Project Muscular Dystrophy in April 2013, December 2016, July 2017 and May 2018, respectively. Each in-licensed right is being amortized on a straight-line basis over the remaining life of the relevant patent from the date the related fee was incurred, either the regulatory approval or the first commercial sale of the applicable product. For the three months ended March 31, 2026 and 2025, we recorded amortization of in-licensed rights of approximately $0.7 million and $0.6 million, respectively.
Current wording
Amortization of in-licensed rights relates to the agreements we entered into with UWA, Nationwide, BioMarin Pharmaceutical Inc. ("BioMarin") and Parent Project Muscular Dystrophy in April 2013, December 2016, July 2017 and May 2018, respectively. Each in-licensed right is being amortized on a straight-line basis over the remaining life of the relevant patent from the date the related fee was incurred, either the regulatory approval or the first commercial sale of the applicable product. For the three and six months ended June 30, 2026, we recorded amortization of in-licensed rights of approximately $0.7 million and $1.4 million, respectively. For the three and six months ended June 30, 2025, we recorded amortization of in-licensed rights of approximately $0.7 million and $1.3 million, respectively.
Previous wording
Other expense, net primarily consists of the unrealized gain or loss from our investments in our strategic equity investments, interest expense on our 1.25% convertible senior notes due September 15, 2027 (the “2027 Notes”) and our 4.875% convertible senior notes due September 1, 2030 (the “2030 Notes”), interest income on our cash, cash equivalents and investments and accretion of investment discount. Our cash equivalents and investments consist of money market funds, government and government agency bonds, corporate bonds, commercial paper and certificates of deposit.
Current wording
Other (expense) income, net primarily consists of the unrealized gain or loss from our investments in our strategic equity investments, interest expense on our 1.25% convertible senior notes due September 15, 2027 (the “2027 Notes”) and our 4.875% convertible senior notes due September 1, 2030 (the “2030 Notes”), interest income on our cash, cash equivalents and investments and accretion of investment discount. Our cash equivalents and investments consist of money market funds, government and government agency bonds, corporate bonds, commercial paper and certificates of deposit.
Previous wording
For the three months ended March 31, 2026, other expense, net decreased by $67.9 million compared with the three months ended March 31, 2025. The change was primarily due to an $89.0 million decrease in the loss on our strategic investments, primarily related to our investment in Arrowhead during the three months ended March 31, 2025, which we sold in August 2025. This was partially offset by a $17.2 million increase in interest expense due to the 2030 Notes carrying a higher interest rate than the 2027 Notes, as well as a $5.4 million decrease in interest income as a result of reduced investment balances during the three months ended March 31, 2026 compared to the three months ended March 31, 2025.
Current wording
For the six months ended June 30, 2026, other expense, net decreased by $14.8 million compared with the six months ended June 30, 2025. The change was primarily due to a $51.8 million decrease in the loss on our strategic investments, primarily related to our investment in Arrowhead during the six months ended June 30, 2025. This was partially offset by a $33.5 million increase in interest expense due to the 2030 Notes carrying a higher interest rate than the 2027 Notes as well as a decrease in interest income as a result of reduced investment balances during the six months ended June 30, 2026, as compared to the six months ended June 30, 2025.
Previous wording
Income tax expense for the three months ended March 31, 2026 and 2025 was $12.2 million and $64.0 million, respectively. Income tax expense for both periods presented primarily relates to state, federal and foreign income taxes for which available tax losses or credits were not available to offset. As of March 31, 2026, we continued to maintain a full valuation allowance against our deferred tax assets, with the exception of deferred tax assets in certain foreign jurisdictions. We continue to monitor the available evidence relative to recovery of our deferred tax assets and whether such evidence would be sufficient to conclude that it is more likely than not that such deferred tax assets may be partially or fully recoverable. If we were to remove our valuation allowance in part or full, any such adjustment could have a material impact on our effective tax rate in the applicable period and beyond.
Current wording
Income tax expense for the three and six months ended June 30, 2026 was $3.1 million and $15.4 million, respectively. Income tax (benefit) expense for the three and six months ended June 30, 2025 was $(43.3) million and $20.7 million, respectively. Income tax expense for all periods presented primarily relates to state income taxes as a result of taxable profits in certain states requiring the capitalization of research and development costs and states which have suspended or limited the utilization of net operating loss carryforwards. As of June 30, 2026, we continued to maintain a full valuation allowance against our deferred tax assets, with the exception of deferred tax assets in certain foreign jurisdictions. We continue to monitor the available evidence relative to recovery of our deferred tax assets and whether such evidence would be sufficient to conclude that it is more likely than not that such deferred tax assets may be partially or fully recoverable. If we were to remove our valuation allowance in part or full, any such adjustment could have a material impact on our effective tax rate in the applicable period.
Previous wording
There have been no material changes to our obligations under lease or debt arrangements as reported in our Annual Report on Form 10-K for the year ended December 31, 2025, except for the partial draw down and repayment of the five-year $600.0 million senior secured revolving credit facility entered into in February 2025 (the “Revolving Credit Facility”), as discussed in Note 13, Revolving Credit Facility.
Current wording
There have been no material changes to our obligations under lease or debt arrangements as reported in our Annual Report on Form 10-K for the year ended December 31, 2025, except for the partial draw downs and repayments of the five-year $600.0 million senior secured revolving credit facility entered into in February 2025 (the “Revolving Credit Facility”), as discussed in Note 13, Revolving Credit Facility.
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Rearranged current paragraphs (9)
Current report — wording carried from elsewhere
**See above for further details regarding product supply sold to Roche via contract manufacturing under the Roche Collaboration Agreement.
Current report — wording carried from elsewhere
$10.4 million decrease in clinical trial expenses primarily related to the pause of several studies for our LGMD programs as a result of our decision to reprioritize our pipeline announced in July 2025 (the "Pipeline Reprioritization") and the completion of certain SRP-9001 and PMO studies in 2025, partially offset by increased activity in our siRNA programs;
Current report — wording carried from elsewhere
$3.7 million decrease in professional services primarily related to fewer third-party contractors used during the three months ended June 30, 2026 due to the Pipeline Reprioritization and the completion of certain SRP-9001 studies in 2025;
Current report — wording carried from elsewhere
$11.4 million decrease in facility- and technology-related expenses primarily as a result of the Restructuring;
Current report — wording carried from elsewhere
$12.1 million decrease in research and other expenses primarily due to ongoing cost reduction efforts and the Pipeline Reprioritization; and
Current report — wording carried from elsewhere
$38.9 million decrease in the offset to expense associated with a collaboration reimbursement from Roche primarily due to reduced SRP-9001 clinical supply as well as reduced headcount pursuant to the Restructuring resulting in lower reimbursable costs.
Current report — wording carried from elsewhere
$12.3 million decrease in professional service expenses primarily related to reduced ELEVIDYS commercialization spending following the label update for ELEVIDYS which included only the ambulatory patient population for treatment and reduced legal spending driven by the settlement of a certain matter in 2025;
Current report — wording carried from elsewhere
$4.1 million decrease in other expenses primarily related to the timing of charitable donations.
Current report — wording carried from elsewhere
For the three months ended June 30, 2026, other expense, net increased by $53.1 million compared with the three months ended June 30, 2025. This was primarily due to a $37.2 million decrease in the gain on strategic investments primarily related to our investment in Arrowhead during the three months ended June 30, 2025, which we sold in August 2025, and a $16.3 million increase in interest expense due to the 2030 Notes carrying a higher interest rate than the 2027 Notes.