Sarepta Soars as Gene Therapy Stays on Market With Warning

Sarepta Therapeutics Inc. shares soared after the company said it was cutting more than a third of its workforce and that its gene therapy for a fatal muscle disorder would stay on the market with warnings about the potential for liver failure.

The Cambridge, Massachusetts-based biotech company said Wednesday it would eliminate about 500 employees as part of a sweeping restructuring. It’s also pausing several drugs in its pipeline. Sarepta said the moves would contribute to an estimated $400 million in annual cost savings.