Sharp Revenue ContractionA roughly 43% revenue decline is a structurally negative signal: it erodes scale advantages, reduces the ability to fund R&D and commercialization, and pressures pricing power. Sustained revenue contraction impairs long-term competitiveness and recovery runway.
Weak Cash GenerationZero/negative operating and free cash flow indicate the company cannot reliably self-fund operations or growth. Over months to years this raises liquidity risk, forces external financing, and can constrain drug development, product launches, and commercial expansion.
Elevated Leverage And Falling EquityA debt-to-equity around 1.0 coupled with declining shareholders' equity raises refinancing and solvency concerns. Higher leverage limits strategic flexibility, increases interest burden, and magnifies downside in an industry where long R&D cycles require stable funding.