Negative Operating And Free Cash FlowPersistently negative operating and free cash flow indicate the business cannot self-fund growth or clinical programs, increasing reliance on external capital. Over months this undermines financial flexibility and raises execution risk for long-duration drug development projects.
Persistent Net LossesOngoing net losses despite revenue gains point to structural cost or scale issues. Continued losses reduce retained earnings and can constrain reinvestment, requiring profitable inflection or material cost restructuring to achieve sustainable long-term financial health.
Reliance On External Financing And Past LeverageDependence on external funding and historical negative equity/high leverage heighten refinancing and dilution risks. Over a multi-month horizon this can constrain strategic choices, increase financing costs, and pressure management to prioritize cash generation over longer-term R&D investments.