Severe Cash BurnVery large negative operating and free cash flows create persistent financing dependence and dilution risk. Over a multi-quarter horizon this undermines run-rate stability, forces frequent capital raises or deal-dependence, and increases execution risk for clinical programs absent new funding.
Negative Shareholders' EquityA negative equity position is a structural solvency warning that constrains financing options, complicates leverage calculations, and raises refinancing risk. Lenders and partners may demand stricter terms, increasing cost of capital and limiting strategic flexibility over the medium term.
Sharp Revenue Decline And Persistent LossesA material revenue drop combined with deep, ongoing operating losses signals an unstable commercial progress and weak near-term cash conversion. This erodes bargaining power with partners, raises execution risk for pipeline advancement, and increases likelihood of future financing dependency.