Sarepta to Sell Up to $225 Million of Stock

Sarepta Therapeutics Inc. intends to sell up to $225 million of stock and use the proceeds for clinical trials, drug commercialization, manufacturing and other purposes.

The company's shares surged 74% to $48.94 on Monday as the U.S. Food and Drug Administration gave accelerated approval to eteplirsen, its drug for Duchenne muscular dystrophy, following sharp disagreements within the agency. Sarepta stock rose 14% on Tuesday, when it received favorable patent decisions in a dispute with BioMarin Pharmaceutical Inc.

Wednesday, it rose 0.9% and another 0.7% after hours to $56.59.

Sarepta filed a shelf registration in February for the potential sale of securities.

Underwriters for the stock offering include J.P. Morgan, Goldman Sachs and Credit Suisse. Sarepta held a smaller stock sale in June, when it sold at least 2.1 million shares for $17.84 each.

An advisory committee to the FDA in April voted 7-3, with 3 abstentions, that the data for the Duchenne drug weren't enough for agency approval. By late May, Sarepta had announced that the FDA wouldn't make a decision by the deadline and that it would work with the agency in its examination of the data.

Write to Josh Beckerman at [e-mail]

(END) Dow Jones Newswires

September 21, 2016 18:15 ET (22:15 GMT)

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