Investing in biotech stocks is risky. And one of the more volatile ones of late is Sarepta Therapeutics (NASDAQ: SRPT). Shares of the company crashed last week after it released results from phase 3 trials, which failed to impress investors and analysts. Is the company in big trouble, or is this latest setback simply a good opportunity for long-term investors to buy the stock at a reduced price?

For biotech investors, the results of a clinical trial can often be more important for a stock than its actual earnings numbers. Trials help determine a drug's safety profile and how effective it is in doing what it is designed to do. A primary endpoint is the main goal for a trial, and if that isn't met, that can be a sign it is not effective.

That's what happened last week to Sarepta. On Oct. 30, the company reported results from a phase 3 study of its gene therapy, Elevidys, a treatment for Duchenne muscular dystrophy (DMD). In June, the Food and Drug Administration (FDA) granted accelerated approval for the treatment, but it was for a narrower group -- children between the ages of 4 and 5 -- than what the company intended. Sarepta was hoping the approval would cover children up to the age of 7.

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Source Fool.com