Sarepta Therapeutics Announces Second Quarter 2016 Financial Results and Recent Corporate Developments CAMBRIDGE, Mass. (BUSINESS WIRE)

Sarepta Therapeutics Announces Second Quarter 2016 Financial Results and Recent Corporate Developments

CAMBRIDGE, Mass. (BUSINESS WIRE) July 19, 2016 Sarepta Therapeutics, Inc. (NASDAQ:SRPT), a developer of innovative RNA-targeted therapeutics,

today reported financial results for the three and six months ended June 30, 2016, and provided an update of recent corporate developments.

For the second quarter of 2016,

Sarepta reported a net loss of $62.3 million, or $1.35 per share, compared to a net loss of $41.9 million for the second quarter of 2015, or $1.01 per share. The incremental loss of $20.5 million was primarily the result of increased research and

development expenses.

Excluding $7.5 million of stock-based compensation expense and restructuring expenses, non-GAAP net loss for the second quarter of

2016 was $54.8 million, or $1.19 per share, compared to a non-GAAP net loss excluding $5.9 million of stock-based compensation expense of $35.9 million for the second quarter of 2015, or $0.87 per share.

No revenue was recognized for the three months ended June 30, 2016 and 2015.

Research and development expenses were $44.3 million for the second quarter of 2016, compared to $29.2 million for the second quarter of 2015, an increase of

$15.2 million. Non-GAAP research and development expenses (excluding $2.9 million of stock-based compensation and restructuring expenses) were $41.4 million for the second quarter of 2016, compared to $26.6 million (excluding $2.6 million of

stock-based compensation) for the second quarter of 2015, an increase of $14.8 million.

General and administrative expenses were $17.8 million for the second quarter of 2016, compared to $12.9 million

for the second quarter of 2015, an increase of $4.8 million. Non-GAAP general and administrative expenses (excluding $4.5 million of stock-based compensation and restructuring expenses) were $13.2 million for the second quarter of 2016, compared to

$9.6 million (excluding $3.4 million of stock-based compensation) for the second quarter of 2015, an increase of $3.7 million.

The Company had $134.7

million in cash, cash equivalents, short-term investments and restricted cash as of June 30, 2016 compared to $204.0 million as of December 31, 2015, a decrease of $69.3 million. The decrease was due to the use of cash to fund the

Company s ongoing operations and commercial launch activities.

Use of Non-GAAP Measures

In addition to the GAAP financial measures set forth in this press release, the Company has included certain non-GAAP measurements: non-GAAP research and

development expenses, non-GAAP general and administrative expenses, non-GAAP operating expense adjustments, non-GAAP net loss, and non-GAAP basic and diluted net loss per share, which present operating results on a basis adjusted for stock-based

compensation and restructuring expenses.

Stock-based compensation expenses represent non-cash charges related to equity awards granted by Sarepta.

Although these are recurring charges to operations, management believes the measurement of these amounts can vary substantially from period to period and depend significantly on factors that are not a direct consequence of operating performance that

is within management s control. Therefore, management believes that excluding these charges from non-GAAP research and development expenses, non-GAAP general and administrative expenses, non-GAAP net loss and non-GAAP net loss per share

facilitates comparisons of the Company s operational performance in different periods.

Restructuring related expenses incurred related to the

consolidation of the Company s operations to Massachusetts have been excluded from non-GAAP research and development expenses, non-GAAP general and administrative expenses, non-GAAP

net loss and non-GAAP net loss per share as the Company believes that the adjustments for these items represent more closely the sustainability of the Company s operating performance and

understanding of its financial results.

The Company uses these non-GAAP measures as key performance measures for the purpose of evaluating operational

performance and cash requirements internally. The Company also believes these non-GAAP measures increase comparability of period-to-period results and are useful to investors as they provide a similar basis for evaluating the Company s

performance as is applied by management. These non-GAAP measures are not intended to be considered in isolation or to replace the presentation of the Company s financial results in accordance with GAAP. Use of the terms non-GAAP research and

development expenses, non-GAAP general and administrative expenses, non-GAAP operating expense adjustments, non-GAAP net loss, and non-GAAP basic and diluted net loss per share may differ from similar measures reported by other companies, which may

limit comparability, and are not based on any comprehensive set of accounting rules or principles. All relevant non-GAAP measures are reconciled from their respective GAAP measures in the attached table Reconciliation of GAAP to Non-GAAP Net

Recent Corporate Developments

Duchenne Muscular Dystrophy Program

About Sarepta Therapeutics

Sarepta Therapeutics is a biopharmaceutical company focused on the discovery and development of unique RNA-targeted therapeutics for the treatment of

rare, infectious and other diseases. The Company is primarily focused on rapidly advancing the

development of its potentially disease-modifying DMD drug candidates, including its lead DMD product candidate, eteplirsen, designed to skip exon 51. Sarepta is also developing therapeutics for

the treatment of rare, infectious and other diseases. For more information, please visit us at www.sarepta.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities

Litigation Reform Act of 1995. Any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Words such as believes, anticipates, plans,

expects, will, intends, potential, possible and similar expressions are intended to identify forward-looking statements. Forward-looking statements include those regarding the

Company s business plans.

These forward-looking statements involve risks and uncertainties, many of which are beyond Sarepta s control.

Known risk factors include, among others: data collected by the Company may not satisfy the FDA s requirements or support approval of our eteplirsen NDA, on an expedited timeframe or at all, and the FDA may further delay its approval decision,

make additional requests relating to the eteplirsen NDA, provide a complete response letter or otherwise decline to provide marketing approval for eteplirsen; we may not be able to comply with any other FDA requests relating to the eteplirsen NDA or

with respect to our ongoing or planned clinical trials, in a timely manner or at all; the FDA may further delay its decision on the eteplirsen NDA or may not provide marketing approval for eteplirsen for other reasons; we may not be able to complete

clinical trials required by the FDA for approval of our products or any submissions made in connection with our pipeline of product candidates; the results of our ongoing research and development efforts and clinical trials for our product

candidates including eteplirsen and our technologies may not be positive or consistent with prior results or demonstrate a safe treatment benefit or support an NDA filing, positive advisory committee recommendation or marketing approval by the FDA

or other regulatory authority; we may not be able to execute on our business plans including meeting our expected or planned regulatory milestones and timelines, clinical development plans and bringing our product candidates to market, including the

planned commercialization of eteplirsen, for various reasons, including factors outside of the Company s control, including possible limitations of Company financial and other resources,

manufacturing limitations that may not be anticipated or resolved for in a timely manner or at all, and regulatory, court or agency decisions, such as decisions by the United States Patent and Trademark Office with respect to patents that cover our

product candidates; and those risks identified under the heading Risk Factors in Sarepta s most recent Annual Report on Form 10-K for the year ended December 31, 2015 or most recent Quarterly Report on Form 10-Q filed with

the Securities and Exchange Commission (SEC) as well as other SEC filings made by Sarepta which you are encouraged to review.

Any of the foregoing

risks could materially and adversely affect Sarepta s business, results of operations and the trading price of Sarepta s common stock. For a detailed description of risks and uncertainties Sarepta faces, you are encouraged to review the

Company s filings with the SEC. We caution investors not to place considerable reliance on the forward-looking statements contained in this press release. Sarepta does not undertake any obligation to publicly update its forward-looking

statements based on events or circumstances after the date hereof.

Internet Posting of Information

We routinely post information that may be important to investors in the For Investors section of our web site at www.sarepta.com. We

encourage investors and potential investors to consult our website regularly for important information about us.

Sarepta Therapeutics, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)

Sarepta Therapeutics, Inc.

Reconciliation of GAAP to Non-GAAP Net Loss

(in thousands, except per share amounts)

Sarepta Therapeutics, Inc.

Balance Sheet Highlights

Source: Sarepta Therapeutics, Inc.

Media and Investors:

Sarepta Therapeutics, Inc.

Ian Estepan, 617-274-4052

Brian Reid, 212-257-6725