When a company obtains positive news from the Food and Drug Administration (FDA), such as the approval of a treatment or a label expansion, it can mark a milestone for the business and lead to significant revenue growth. The risk with many biotech stocks is not knowing if they will obtain approval for a key treatment, or if that approval might come with an asterisk and only cover certain aspects of an illness or condition.

Sarepta Therapeutics (NASDAQ: SRPT) stock has been flying of late, as the company got some great news from the FDA that has the potential to be a game changer for its business. Investors are bullish on the developments. Here's a look at the details and what they mean for the company.

Last year, the FDA granted accelerated approval for Sarepta's gene therapy treatment, Elevidys, as a treatment for Duchenne muscular dystrophy (DMD) in children between the ages of 4 and 5. That was bittersweet for investors because while it was an approval, its scope was narrow, and the company was hoping for a broader indication.

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Source Fool.com