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Sarepta shares plunge after panel says eteplirsen not proven effective

Sarepta's CEO: Patient input matters
Sarepta's CEO: Patient input matters
FDA votes on muscular dystrophy drug
FDA votes on muscular dystrophy drug
VRX vs. PRGO & SRPT vs the FDA
VRX vs. PRGO & SRPT vs the FDA

Sarepta Therapeutics shares initially plunged 40 percent Tuesday, a day after a Food and Drug Administration advisory committee voted against recommending the company's Duchenne muscular dystrophy drug.

Sarepta shares closed down 26 percent Tuesday.

On Monday, seven members of the FDA's Peripheral and Central Nervous System Drugs Advisory Committee voted that Sarepta had not provided enough evidence that the drug, eteplirsen, was effective for treating DMD. Three voted that it had, and three abstained.

According to Reuters, the panel found that the drug did not "show substantial evidence of efficacy."

The stock had risen more than 7 percent in premarket trading Monday before an all-day halt.

A file photo of BioMarin Pharmaceutical
CEO still bullish on drug for rare disease despite FDA concerns

Shares of the pharmaceutical company closed up more than 35 percent Friday after the FDA added a voting question to the agenda for the Monday meeting. Sarepta shares were crushed on Thursday, closing down 44 percent, after the FDA maintained a negative outlook on the drug.

Sarepta stock has been under pressure and is down more than 60 percent this year.

SRPT year to date

Source: FactSet