Deep, Persistent UnprofitabilitySevere and persistent losses reflect an unmet path to operating profitability. Structurally, negative gross margins and very large negative net margins constrain reinvestment capacity, increase reliance on external funding, and heighten execution and dilution risk while clinical programs continue.
Sustained Negative Cash FlowOngoing free cash flow burn of tens of millions is a durable pressure on the business: it shortens runway, forces recurrent financing or partnership dependency, and limits the firm’s ability to independently advance costly clinical programs without dilutive capital events.
Eroding Equity / Dilution RiskMaterial erosion of equity over several years signals cumulative losses and capital raises, raising the probability of further dilution. Over months this weakens the capital base, reduces financial cushions for setbacks, and can impair the company’s bargaining position in partnerships or financings.