What happened

After reporting first-quarter results, shares of Sarepta Therapeutics (SRPT -1.14%), a commercial-stage biotech focused on rare diseases, jumped 14% as of 3:40 p.m. EDT Friday.

So what

Here's a review of the key numbers from the first quarter:

  • Revenue jumped 296% to $64.6 million. The jump was led by increasing sales of the company's Duchenne muscular dystrophy drug Exondys 51. That was a hair behind the $64.8 million that Wall Street was projecting.
  • Non-GAAP Net loss was $17.9 million, or $0.28 per share. That was less than the $0.32 loss that analysts had expected.

Looking beyond the financial statements, Sarepta also recently signed an exclusive partnership deal with Myonexus Therapeutics. The move expands the company's pipeline from 16 programs to 21.

Ben Franklin on hundred dollar bill surrounded by pills.

Image source: Getty Images.

Management also announced that it is hosting a research and development day on June 19. Several opinion leaders in the medical field will be on site to present a more nuanced look at the company's pipeline of programs.

Finally, the company received a negative trend vote from the Committee for Medicinal Products for Human Use (CHMP) in Europe. Management believes that the update will cause eteplirsen (which is called Exondys 51 in the U.S.) to be delayed in Europe.

Given the mixed results, this Fool is left scratching his head as to why shares are skyrocketing today.

Now what

Sarepta's investors have enjoyed a fantastic run over the last 18 months in response to the strong demand for Exondys 51. Despite the gains, management still sees good times ahead. When adding in the rest of the company's Duchenne muscular dystrophy pipeline to the mix, management thinks that peak sales potential of $2 billion is possible.

While I think that Sarepta can continue to ramp sales of Exondys 51 from here, there's an argument to be made that the company's current market cap of nearly $6 billion is pricing in a lot of continued prosperity and not much risk. For that reason, I plan to continue to root for this company's success from the safety of the sidelines.