01:13 PM EDT, 07/28/2025 (MT Newswires) -- Sarepta Therapeutics ( SRPT ) could face financial trouble by 2027 if Elevidys is not back on the market by early 2026, RBC Capital Markets said in a note Monday.

The company may need to cut costs by 20% beyond current plans to stay afloat without Elevidys, the investment firm said.

Sarepta owes Arrowhead (ARWR) $300 million in 2025 milestone payments, and the DM1 program would return to Arrowhead, if unpaid, according to the note. If Sarepta miss the upcoming installment and milestones from 2026 onward, even after paying the near-time payments, Arrowhead would have the right to terminate the partnership.

Manufacturing contracts with Catalent and Aldevron are sizable but include clauses that could let Sarepta renegotiate or push out costs after Elevidys' setbacks, RBC analysts noted.

The company has a $600 million revolving credit line, but covenants limit draws to 3.5 times and require 2.5 times interest coverage, making use difficult if earnings fall, according to RBC.

Exondys, Vyondys and Amondys now have a 65% to 80% chance of remaining on the market after confirmatory trials, RBC analysts said in the note.

Sarepta has $1.15 billion in convertible debt due in 2027. Repayment is likely required unless stock rebounds. The company might explore refinancing, but higher interest or shareholder dilution could be downsides.

RBC maintained a sector perform rating for Sarepta with a $10 price target.

Shares of the company were up about 11% in recent trading.

Price: 13.33, Change: +1.40, Percent Change: +11.74