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Sarepta Plunges On Big Gene-Therapy Trial Miss

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In the drug- and therapy-trial world, there are misses and then there are misses.

Sarepta Therapeutics (SRPT) - Get Report suffered from the latter this week, by investors' and analysts' estimates, resulting in its shares plunging on Friday.

Shares of Sarepta plunged more than 50% on Friday after the company said its gene therapy as a one-time treatment for the rare disorder Duchenne muscular dystrophy failed to show benefits compared to a placebo.

The unexpected miss stirred doubt on the potential for the therapy and also spooked investors in rival companies such as Solid Biosciences (SLDB) - Get Report and Rocket Pharmaceuticals (RCKT) - Get Report, which also posted double-digit percentage declines.

While analysts expressed disappointment in the trial results, they were also quick to note that the gene therapy approach could still work as a potential treatment.

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