Outlook Therapeutics (OTLK) has disclosed a new risk, in the Supply Chain category.
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Outlook Therapeutics faces significant business risk due to its reliance on third-party manufacturers, specifically FUJIFILM Diosynth Biotechnologies, for the production and supply of its drug candidates, including ONS-5010/LYTENAVA. This reliance exposes the company to potential supply interruptions, quality issues, and regulatory non-compliance, which could delay clinical trials and commercialization efforts, adversely impacting business operations. The inability to secure alternative manufacturing partners or manage increased demand during production capacity shortages could further exacerbate these risks. Additionally, breaches or terminations of manufacturing agreements by third parties could lead to costly delays and negatively affect revenue and gross margins.
Overall, Wall Street has a Moderate Buy consensus rating on OTLK stock based on 2 Buys and 1 Hold.
To learn more about Outlook Therapeutics’ risk factors, click here.