Negative Free Cash FlowA turn to negative free cash flow signals that capital expenditures or working capital needs outpace operating cash, reducing financial flexibility. Over several quarters this can constrain funding for trials, manufacturing scale‑up, or strategic investments and may force external financing at unfavorable terms.
Earnings DeclineA large negative EPS growth rate reflects meaningful earnings pressure year‑over‑year, reducing the margin for error on future investments. Persisting EPS declines can limit retained earnings, weaken confidence in profitability trends, and complicate long‑term planning for R&D and commercialization.
Moderate Return On EquityAn ROE in the mid‑teens is respectable but modest for a growth‑oriented biotech; it suggests room to improve capital efficiency. If ROE does not rise with revenue scaling, shareholder value creation may lag industry peers, limiting long‑term upside from operational leverage.