Persistent UnprofitabilityOngoing negative EBIT and net losses reflect structural profitability challenges. Persistent unprofitability forces continued capital raises or partner dependence, reducing strategic flexibility and increasing dilution risk for shareholders over the medium term.
Negative Operating And Free Cash FlowNegative operating and free cash flow indicate the core business does not yet generate self-sustaining cash, creating reliance on financing activity. This elevates execution risk if capital markets tighten and can slow program advancement or force unfavorable funding terms.
High Leverage And Low Equity RatioElevated leverage raises fixed obligations and reduces financial flexibility, particularly risky for a clinical-stage biotech with binary R&D outcomes. High debt increases refinancing and covenant risk, constraining ability to invest in multiple programs simultaneously.