Shares of Sarepta Plunge on FDA Categorization of Duchenne Drug

Shares of Sarepta (SRPT) - Get Report plunged 27 percent on Thursday after the Food and Drug Administration finalized procedures for expanding access to unapproved drugs. TheStreet's Adam Feuerstein reports that under the new process, the FDA may be pressuring Sarepta to provide  a drug used to treat Duchenne muscular dystrophy on a 'compassionate use' basis instead of granting accelerated approval. Feuerstein says Sarepta could be a 'financial loser' in this situation as the company could charge for expanded access to the drug but only to recoup manufacturing costs. In the meantime, Sarepta will still need to find investors to fund ongoing clinical trials of the drug.

This article was written by a staff member of TheStreet.