Rising LeverageAn increase in total debt, even with a manageable debt-to-equity ratio today, raises longer-term financing and interest-rate exposure. Continued debt growth could constrain strategic flexibility, increase fixed financing costs, and limit capacity to invest in R&D or M&A during downturns.
Cash Flow VolatilityHistoric swings in operating and free cash flow, including a prior year of negative operating cash flow, indicate episodic liquidity risk. Persistent volatility may necessitate external financing or draw on credit lines, raising financing costs, dilution risk, and complicating long-term planning.
Emerging Cost PressureA slight decline in gross profit implies emerging cost or pricing pressure that could, if sustained, erode margins. For a biotech company reliant on healthy gross margins to fund R&D and commercialization, ongoing cost pressure would weaken reinvestment capacity and competitive positioning.