Gross Margin ImprovementA material uplift in 2025 gross margin suggests the company achieved better product mix or pricing. If sustained, higher gross margins provide more durable operating leverage, improve the pathway to profitability and allow reinvestment in R&D or commercialization as revenue stabilizes.
Improving Free Cash Flow TrendLess-negative free cash flow in 2025 indicates progress reducing cash burn, which can extend the firm's financing runway. A durable trend toward break-even FCF would lower reliance on external capital, reduce dilution risk and strengthen the ability to fund operations or strategic initiatives.
Industry PositioningOperating in specialty and generic pharmaceuticals exposes the company to structural demand for medicines and repeatable revenue streams. Specialty drugs can offer pricing power while generics benefit from steady volume, creating durable market opportunities if the company executes product strategy and compliance.