Sarepta stock rose sharply Tuesday after the Food and Drug Administration allowed the biopharma company to resume shipments of a controversial drug.
According to Sarepta, the FDA told the company it "may lift its voluntary pause" on shipments of its gene therapy drug, Elevidys. Elevidys is a gene therapy for Duchenne muscular dystrophy.
Sarepta stock plunged last week after the company paused shipments of the drug.
"Last week, at the suggestion of FDA, Sarepta made the difficult decision to pause shipments of Elevidys to provide the FDA with an opportunity to complete a review of available safety information," the company said in a statement.
"We are very pleased that FDA chose to rapidly and comprehensively complete that review and to recommend that we remove our voluntary pause and resume shipment of Elevidys for ambulatory patients."
Additionally, Sarepta shares soared 14.2% to close at 15.83. The stock has shed roughly 87% year to date. Sarepta has a Relative Strength rating of 1, down from 83 a year ago, according to IBD MarketSurge.
