Clinical Trial Failure Risk: The success of their lead candidate, obefazimod, in ongoing and future clinical trials is critical, and failure to meet primary or secondary endpoints or demonstrate sufficient safety and efficacy would severely impact the company's prospects.

Regulatory Approval Uncertainty Risk: Even if clinical trials are successful, there is no guarantee that regulatory bodies such as the FDA or EMA will grant approval for obefazimod, and delays or outright rejections are potential outcomes.

Intense Competition Risk: The market for inflammatory bowel diseases, particularly ulcerative colitis, is highly competitive with numerous established therapies and other drugs in development, which could limit obefazimod's potential market share and commercial success.