Negative Shareholder EquitySustained negative equity signals capital deficits and weak solvency optics, limiting access to non‑dilutive financing and raising lender/partner caution. Combined with existing debt, this structural weakness constrains strategic flexibility and increases reliance on equity or milestone financing.
Persistent Cash BurnDespite improvement, recurring negative operating and free cash flow indicate the business structurally consumes capital to progress trials. Continued burn creates recurring financing needs, raises dilution risk, and makes the company sensitive to trial timing or milestone delays that would shorten runway.
High R&D‑driven LossesElevated R&D spend is essential for a clinical‑stage biotech but produces persistent operating losses, delaying any path to profitability. High development costs force prioritisation of programs, increase dependency on partners or financings, and amplify execution risk if key trials underperform.