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Cosciens Biopharma Inc(CSCI) - 2024 Q4 - Annual Report
CSCICosciens Biopharma Inc(CSCI)2025-04-09 21:29

Company Formation and Structure - COSCIENS Biopharma Inc. was formed following the all-stock merger of Aeterna Zentaris Inc. and Ceapro Inc. on June 3, 2024, with the name change effective August 6, 2024[232][249]. - The Company’s common shares are traded on Nasdaq and TSX under the symbol "CSCI" following the merger[233][250]. - Following the merger, former shareholders of Ceapro and Aeterna each own approximately 50% of the common shares on a fully diluted basis[246]. Financial Performance - Total revenue for Q4 2024 was 3.3million,a1743.3 million, a 174% increase from 1.2 million in Q4 2023, primarily driven by a 1.2millionincreaseinsalesofAvenanthramides,BetaGlucan,andOatOil[268].−Forthetwelve−monthperiodendedDecember31,2024,totalrevenuereached1.2 million increase in sales of Avenanthramides, Beta Glucan, and Oat Oil[268]. - For the twelve-month period ended December 31, 2024, total revenue reached 9.6 million, up 34% from 7.1millionin2023,withasignificantcontributionfromMacrilenrevenueduetotheacquisitionofAeterna[270].−Totalrevenueforthetwelve−monthperiodendedDecember31,2023,was7.1 million in 2023, with a significant contribution from Macrilen revenue due to the acquisition of Aeterna[270]. - Total revenue for the twelve-month period ended December 31, 2023, was 7.1 million, a decrease of 7.4millionor517.4 million or 51% compared to 14.5 million in 2022[272]. - Consolidated net loss for the three-month period ended December 31, 2024, was 6.7million,comparedtoanetlossof6.7 million, compared to a net loss of 1.6 million in the same period in 2023, representing an increase of 5.1million[290].−Thecompanyreportedaconsolidatednetlossof5.1 million[290]. - The company reported a consolidated net loss of 15.3 million for the twelve-month period ended December 31, 2024, compared to a net loss of 3.5millionin2023,anincreaseof3.5 million in 2023, an increase of 11.8 million[290]. Research and Development - The Phase 3 DETECT-trial for macimorelin failed to meet its primary endpoints, leading to a strategic review and discontinuation of investment in related pre-clinical programs[244]. - The Company has initiated a strategic review of its pipeline and is exploring alternatives for macimorelin, including potential divestment[244]. - Research and development expenses for Q4 2024 were 2.9million,significantlyhigherthan2.9 million, significantly higher than 0.5 million in Q4 2023, reflecting increased investment in product development[268]. - Total research and development expenses for the twelve-month period ended December 31, 2024, were 8.3million,anincreaseof8.3 million, an increase of 6.3 million or 307% compared to 2.0millionin2023[274].−Avenanthramidesarebeingdevelopedfornutraceuticalapplicationstotreatinflammation−basedconditions,withaPhase1−2astudycurrentlyunderway[266].StrategicInitiatives−ThecompanyiscurrentlyengagedinasearchforanewPresidentandCEOtoleadfuturegrowthandintegrationefforts[251].−Thecompanyistargetingthelaunchofachewableoatbetaglucanproductforcholesterolreductioninthefirsthalfof2025,leveragingapprovedclaimsinmultipleregions[256].−ThecompanyhasestablishedacollaborationwithNATEXtoscaleupPGXTechnology,withcompletionexpectedinQ22025inAustria[254].−ThecompanydiscontinueditsAIMBiologicalandALSprogramsinQ32024duetochallengingtimelinesandcosts[263].FinancialPositionandCashFlow−Cashandcashequivalentsattheendoftheperiodwere2.0 million in 2023[274]. - Avenanthramides are being developed for nutraceutical applications to treat inflammation-based conditions, with a Phase 1-2a study currently underway[266]. Strategic Initiatives - The company is currently engaged in a search for a new President and CEO to lead future growth and integration efforts[251]. - The company is targeting the launch of a chewable oat beta glucan product for cholesterol reduction in the first half of 2025, leveraging approved claims in multiple regions[256]. - The company has established a collaboration with NATEX to scale up PGX Technology, with completion expected in Q2 2025 in Austria[254]. - The company discontinued its AIM Biological and ALS programs in Q3 2024 due to challenging timelines and costs[263]. Financial Position and Cash Flow - Cash and cash equivalents at the end of the period were 16,393,000, up from 6,678,000attheendofDecember2023[295].−Totalassetsincreasedto6,678,000 at the end of December 2023[295]. - Total assets increased to 35,070,000 as of December 31, 2024, compared to 23,745,000asofDecember31,2023[295].−Thecompanyreportedanetcashusedinoperatingactivitiesof23,745,000 as of December 31, 2023[295]. - The company reported a net cash used in operating activities of (14,568,000) for the twelve months ended December 31, 2024, compared to (2,582,000)forthesameperiodin2023[298].−Cashprovidedbyinvestingactivitiestotaled(2,582,000) for the same period in 2023[298]. - Cash provided by investing activities totaled 25,083,000 for the twelve months ended December 31, 2024, compared to cash used of (730,000)inthesameperiodin2023[301].−Thecompanyplanstofinancefutureoperationsprimarilythroughproductsalesandexistingcashonhand,whichisexpectedtobesufficientforatleastthenext12months[306].RisksandUncertainties−TheCompanyhashighlightedvariousrisksthatmaymateriallyaffectitsbusiness,includingcreditrisk,liquidityrisk,andmarketrisk[318].−TheCompanyisexposedtoforeignexchangeriskduetoinvestmentsinforeignoperationswithafunctionalcurrencyoftheCanadianDollar[588].−AsofDecember31,2024,theCompanyreported(730,000) in the same period in 2023[301]. - The company plans to finance future operations primarily through product sales and existing cash on hand, which is expected to be sufficient for at least the next 12 months[306]. Risks and Uncertainties - The Company has highlighted various risks that may materially affect its business, including credit risk, liquidity risk, and market risk[318]. - The Company is exposed to foreign exchange risk due to investments in foreign operations with a functional currency of the Canadian Dollar[588]. - As of December 31, 2024, the Company reported 16,393 in cash and cash equivalents, indicating a material uncertainty regarding its ability to continue as a going concern[587]. - One counterparty comprised 75% of total receivables as of December 31, 2024, up from 40% in 2023, with no amounts past due[582].