Severe Net LossesExtremely negative net margins signal that operating costs far outstrip revenues, creating structural cash burn. Without material margin improvement or sustained milestone inflows, the company will likely need external funding, diluting shareholders and constraining long-term R&D and commercialization plans.
Weak Cash GenerationRecurrent negative operating and free cash flows indicate inability to convert revenue into usable cash. This undermines self-funding for trials and launches, increasing dependence on partner payments or capital markets and raising execution risk for mid-term development milestones.
Erosion Of Equity BaseOngoing losses that reduce shareholder equity weaken the balance sheet buffer, limiting capacity to absorb adverse trial or regulatory outcomes. Over a 2–6 month horizon this constrains access to non-dilutive financing, may trigger tighter lending terms, and reduces strategic flexibility.