Weak Balance Sheet & LeverageA deteriorating balance sheet with rising leverage and a weakened equity ratio constrains strategic flexibility. Higher indebtedness increases financing costs, elevates covenant and refinancing risk, and can force dilutive funding or scaled-back R&D, impairing long-term execution capacity.
Persistent Cash BurnConsistent negative operating and free cash flow and sizeable H1 2025 outflows indicate structural cash burn. The company remains dependent on external funding cycles; this persistent deficit raises dilution risk, limits ability to self-fund late-stage trials, and pressures long-term sustainability.
Lack Of Secured PartnershipsThe absence of confirmed strategic partnerships is a durable execution risk for a small biotech. Without external pharma collaborators to fund or co-develop assets, Avacta faces greater financing burdens, slower scale-up of clinical programs, and reduced commercialization reach over the medium term.