Company: SRPT
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0000950170-25-103971
Chunk: 8

Company: Sarepta Therapeutics, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 3
Chunk 8
---
Interest-Rate-Sensitive Financial Instruments 

Our current investment policy is to maintain a diversified investment portfolio consisting of money market investments, commercial paper, certificates of deposit, government and government agency bonds and high-grade corporate bonds with maturities of 24 months or less. Our cash is primarily deposited in and invested through highly rated financial institutions in the U.S. As of June 30, 2025, we had $850.3 million of cash, cash equivalents, restricted cash and investments, comprised of $510.6 million of cash and cash equivalents, $324.1 million of investments and $15.6 million non-current restricted cash. The Company only holds debt securities classified as available-for-sale. The fair value of cash equivalents and investments is subject to change as a result of potential changes in market interest rates. Our future investment income may fluctuate due to changes in interest rates or we may suffer losses in principal if we sell securities that decline in market value due to changes in interest rates. The potential change in fair value for interest rate sensitive instruments has been assessed on a hypothetical 10 basis point adverse movement across all maturities. As of June 30, 2025, we estimate that such hypothetical adverse 10 basis point movement would result in a hypothetical loss in fair value of approximately $0.1 million to our interest rate sensitive instruments.

Our $1,150.0 million aggregate principal amount of our 2027 Notes has a fixed interest rate of 1.25% per annum, payable semi-annually in cash on each March 15 and September 15, and therefore are not subject to fluctuations in market interest rates.

Market-Price-Sensitive Financial Instruments

Our strategic investment portfolio includes investments in equity securities of certain publicly traded biotechnology companies as a result of certain business development transactions. While we are holding such securities, we are subject to equity price risk and this may increase the volatility of our income in future periods due to changes in the fair value of strategic equity investments. As of June 30, 2025, strategic equity investments with a fair value of $188.4 million were subject to a contractual sale restriction that expires in August 2025. Changes in the fair value of these equity securities are impacted by the volatility of the stock market and changes in general economic conditions, among other factors. The potential change in fair value for market-price-sensitive instruments has been assessed on a hypothetical 10.0% adverse movement. As of June 30, 2025, we estimate that such hypothetical