SRPT

What You Should Know

Sarepta Therapeutics, Inc. is a commercial-stage biotechnology company developing and marketing RNA-based and gene therapies, with a leading franchise in treatments for Duchenne muscular dystrophy and a broader rare-disease pipeline. Developing and selling medicines is a permissible activity that benefits human health, so the business-activity screen passes. As with any biotech, the verdict depends on the balance sheet: confirm the total-debt-to-market-cap ratio against the 33% threshold and the receivables ratio against the board's threshold using the latest filings, since biotech companies can carry convertible debt and large receivables. Incidental interest income on the company's cash and investment balances should be checked against the 5% threshold and the corresponding portion of returns purified. Assuming the ratios hold, SRPT is generally screened as halal, with routine purification of minor interest income.