High Cash BurnSustained negative operating and free cash flow indicates ongoing reliance on external financing to fund R&D and operations. Over months this erodes runway, increases probability of dilutive equity raises or partnership payments, and constrains strategic choices until cash generation reverses.
Large Losses And Shrinking EquityMaterial net losses and a substantially reduced equity base reflect capital erosion over multiple years. This weakens the balance sheet cushion, raises dilution and financing risk, and limits the company’s ability to absorb clinical setbacks or finance scaling without onerous terms.
Cost Base Ahead Of ScaleOperating costs and R&D expenditures materially exceed current revenue, producing deeply negative margins. Structurally, the company needs meaningful revenue scale or sustained external funding to achieve profitability, making long-term viability sensitive to clinical and commercial execution.