Cambridge, MA, and Austin, TX – A recent tweet by Pearl Freier has ignited discussion regarding corporate governance within the biotech sector, specifically highlighting the dual board membership of Richard J. Barry at Sarepta Therapeutics and Cassava Sciences. The call for resignations, including members of Sarepta's corporate governance committee, comes amidst ongoing controversies surrounding Sarepta's gene therapy Elevidys and Cassava Sciences' now-discontinued Alzheimer's drug simufilam.
Sarepta Therapeutics has faced significant challenges with its Duchenne muscular dystrophy gene therapy, Elevidys. The U.S. Food and Drug Administration (FDA) has recently requested Sarepta to suspend distribution of Elevidys and placed clinical trials for other gene therapies on hold following reports of three patient deaths potentially linked to the treatments. These actions have intensified scrutiny on the drug, which had previously received accelerated approval despite internal FDA concerns and prior trial failures to meet primary endpoints. Sarepta, however, has stated it will not comply with the FDA's request to halt shipments of Elevidys.
Meanwhile, Cassava Sciences has been embroiled in a protracted controversy regarding its Alzheimer's drug candidate, simufilam. Allegations of data manipulation and scientific misconduct have plagued the company, leading to FDA citizen petitions, investigations by the Securities and Exchange Commission (SEC), and a Department of Justice (DOJ) indictment against a key scientific collaborator, Hoau-Yan Wang, for falsifying data. The development of simufilam was ultimately discontinued in November 2024 after failing to show clinical benefit in Phase III trials.
The tweet specifically points to Richard J. Barry, who has served on Sarepta Therapeutics' Board of Directors since June 2015, where he chairs the Nominating and Corporate Governance Committee. Mr. Barry also joined Cassava Sciences' Board of Directors in June 2021, and was appointed CEO of Cassava Sciences in September 2024. This shared directorship raises questions about potential conflicts of interest and the effectiveness of corporate oversight, particularly given the severe data integrity issues at Cassava Sciences and the safety concerns surrounding Sarepta's Elevidys.
Corporate governance principles emphasize the importance of independent boards to ensure robust oversight and protect shareholder interests. Dual directorships, especially in highly regulated and scrutinized industries like biotechnology, can pose challenges to perceived independence and effective governance. The call for resignations reflects a growing demand for heightened accountability and transparency from company leadership in light of significant product and scientific integrity controversies.