Declining Revenue With Negative MarginsSustained revenue decline and deeply negative gross, EBIT and net margins indicate structural inability to monetize operations and control costs. This reduces internal funding capacity for trials, increases reliance on external capital, and undermines long-term financial sustainability.
Balance Sheet Weakness And Negative EquityNegative equity and a distorted debt-to-equity ratio reflect capital deficits and credit strain. Over months this limits strategic flexibility, raises refinancing and covenant risks, and makes new financing more dilutive or costly, constraining growth and program funding options.
Persistent Negative Cash Flow And Worsening FCFOngoing negative operating and free cash flows, and a steeply worsening FCF growth rate, signal structural cash burn. Over a multi-month horizon this pressures liquidity, forces frequent external financing or dilution, and restricts the ability to invest in trials or commercial preparation.