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Ticker: Sarepta reports death in drug trial; Google makes $32B cybersecurity deal

Ticker: Sarepta reports death in drug trial; Google makes $32B cybersecurity deal

  • 18.03.2025 15:56
  • bostonherald.com
  • Keywords: Patient Death, Acute Liver Injury

Sarepta Therapeutics shares dropped over 26% after a patient died during its gene therapy trial for muscular dystrophy. Google agreed to buy cybersecurity firm Wiz for $32 billion, marking its largest acquisition yet as it expands cloud computing amid an AI boom.

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Estimated market influence

Sarepta Therapeutics

Sarepta Therapeutics

Negativesentiment_dissatisfied
Analyst rating: Strong buy

A patient died during a trial of its gene therapy drug Elevidys, leading to a significant drop in company shares.

Google

Positivesentiment_satisfied
Analyst rating: N/A

Announced a $32B deal to acquire cybersecurity firm Wiz, which is part of Google's expansion into cloud computing and AI.

Context

Business Insights and Market Implications

Sarepta Therapeutics - Patient Death in Drug Trial

  • Key Event: A patient died while receiving Elevidys, Sarepta’s gene therapy for Duchenne muscular dystrophy.
    • Cause of death: Acute liver injury (known side effect).
    • Severity: The case was more severe than previously observed with the therapy.
    • Patient count: Over 800 patients have used Elevidys without prior fatalities.
  • Regulatory Context:
    • Elevidys received U.S. approval in 2023 under an expedited program, despite FDA concerns about its effectiveness.
  • Market Impact:
    • Sarepta shares fell by >26%, dropping to ~$74 in trading.
    • Cost of treatment: $3.2 million for a one-time administration.

Google Acquires Cybersecurity Firm Wiz for $32B

  • Deal Details:
    • Acquisition price: $32 billion (Google’s largest-ever acquisition).
    • Strategic focus: Expansion into cloud computing amid AI growth.
    • Competitive landscape: Intensifies rivalry with Microsoft and Amazon in the data center market.
  • Business Context:
    • Wiz will join Google Cloud, a key division for Alphabet, separate from its core search and advertising revenue (~$350 billion annually).
  • Implications:
    • Reflects growing demand for cybersecurity solutions in the AI-driven economy.
    • Positions Google to strengthen its cloud capabilities against competitors.

Analysis

  • Sarepta: The patient death may raise safety concerns, impacting investor confidence and regulatory scrutiny. However, the therapy’s prior widespread use without fatalities suggests potential long-term resilience if issues are managed.
  • Google: The acquisition underscores the tech giant’s commitment to dominating the cloud and cybersecurity markets. This move could solidify its position in a high-growth sector but also faces challenges from antitrust concerns due to its size.

Competitive Dynamics

  • Sarepta faces increased pressure to demonstrate Elevidys’ safety and efficacy, particularly with regulatory bodies.
  • Google’s acquisition highlights the competitive intensity in cloud computing, where Microsoft and Amazon (AWS) are already dominant players.