Sarepta Therapeutics laid off more than one-third of its workforce, or approximately 500 employees, the company announced Wednesday — a drastic cost-cutting move following the deaths of two teenagers that forced the company to restrict usage of its gene therapy for Duchenne muscular dystrophy.
Alongside the cuts, the company also announced it was shifting much of its research, including pausing work on several gene therapies it had in development for limb-girdle muscular dystrophies, a collection of rarer and generally slower-moving diseases. The company said the move will save the company around $400 million per year, lower operating expenses, and boost cash flow sufficient to maintain access to an existing loan agreement.
Three of Sarepta’s top executives, including its No. 2 executive Ian Estepan, received promotions and salary increases, according to a filing with the Securities and Exchange Commission that accompanied the company’s announcement of employee layoffs.
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