Negative Free Cash Flow From CapexSubstantial capex driving negative free cash flow reduces liquidity and limits internal funding for R&D or commercial expansion. If elevated capex persists, the company may need external financing or to curb investment, which could slow product launches and CDMO capacity scaling.
Worsening Operating MarginA sharp drop in EBIT margin signals rising operating costs or inefficiencies that undermine profitability despite strong gross margins. Persistent margin erosion would weaken cash generation, constrain reinvestment for regulated-market approvals, and impair long-term return profiles.
Low ROE And Modest Net MarginDespite stronger revenues, low ROE and single-digit net margins indicate limited returns on shareholders' equity. Over time, this can limit the company’s ability to self-finance growth and may signal that scale or cost structure improvements are required to deliver sustainable investor returns.