Profitability VolatilityRecurrent swings to net losses reduce ability to consistently fund operations internally and undermine predictability of returns. Structural cost pressures, one‑off charges or margin erosion can persist and constrain reinvestment, capital allocation choices, and long‑term return generation.
Rising LeverageMaterial increase in debt elevates interest and refinancing risk, especially alongside earnings volatility. Higher leverage reduces financial flexibility to fund CDMO capacity or absorb regulatory delays, and raises the bar for sustained operational improvement to preserve solvency and investment capacity.
Historical FCF InstabilityAlthough FCF is now positive, prior multi‑year negative free cash flow reflects working‑capital swings and execution risk. If adverse contract timing or margin pressure recurs, cash generation could reverse, limiting sustainable capex, deleveraging, or strategic investments over the medium term.