Shares of Sarepta Therapeutics (SRPT) - Get Report surged 10.2% on Wednesday to $154.32 after the company announced an early stage study of a gene-therapy treatment that could benefit patients with a rare form of muscular dystrophy showed promising results.
Sarepta's early stage study and trial of its MYO-101 treatment showed a benefit for patients with a lesser-known, severe form of muscular dystrophy that primarily affects shoulders and hips.
The announcement follows on the heels of Sarepta exercising its option to acquire closely held Myonexus Therapeutics, the company that developed the gene therapy, for $165 million.
Sarepta and Myonexus last May entered into an exclusive partnership to develop Myonexus's five-gene therapy candidates for treating different forms of so-called limb-girdle muscular dystrophy (LGMD), a group of muscle-wasting disorders.
As part of the deal, Sarepta had an exclusive option to acquire Myonexus.
"We are excited to acquire Myonexus, which will allow us to move rapidly to find solutions for LGMD patients and continue to build out and validate our gene therapy engine," Sarepta CEO Doug Ingram said in a statement.
"Our confidence in these programs has come from the fact that our micro-dystrophin gene therapy and the Myonexus programs have much in common, including inventors from Nationwide Children's Hospital, a shared vector in AAVrh74 and, to date, similar pre-clinical safety data," Ingram said in a separate statement.
Sarepta is also slated to report its fourth-quarter results after the market close Wednesday.