Pre-revenue, Widening LossesThe company remains pre-revenue with materially negative net income, meaning profitability is contingent on clinical success and eventual commercialization. This structural unprofitability elevates dilution risk and makes long-term shareholder value highly dependent on trial outcomes rather than operating leverage.
Persistent High Cash BurnSustained negative operating and free cash flows indicate the business is not self-funding and will likely need external capital before commercialization. Continued burn erodes equity, constrains optionality for expanding programs, and raises the probability of financing-driven dilution or deal-making on unfavorable terms.
Governance And Leadership TurnoverRecent CEO change, a director resignation, and a board-led internal review that reset agreements signify governance disruption. Such structural leadership shifts can slow strategic execution, introduce direction changes, and create uncertainty for partners and investors during a period when consistent clinical development execution is critical.