Persistent Cash BurnConsistent negative operating and free cash flow signals ongoing cash consumption from operations and trials, forcing reliance on external financing or partnerships. Over months this elevates dilution and execution risk, and constrains the ability to fund clinical milestones internally.
Widening Losses / Weak ProfitabilityDeep and worsening losses reflect operating expenses far outstripping revenue, limiting reinvestment flexibility and signaling that current commercial or R&D returns are insufficient. This structural profitability weakness raises questions on sustainable path to positive earnings.
Declining Equity BaseA shrinking equity base is a durable balance-sheet concern: it reflects accumulated losses and reduces financial cushions against shocks. Persisting declines increase the likelihood and potential size of future equity raises, diluting existing holders and impacting long-term capital structure.