RE:H.C. Wainwright on AEZS's diagnostic test:On H.C. Wainwright:
"Selvaraju opined that AEterna should easily and quickly find a new partner to replace Novo and may even negotiate a better share of Macrilen Dx sales revenue." 9/8/22:
AEZS news release 7/23:
"Further, based upon our active outreach and discussions, we expect to secure an alternate development and commercialization partner for Macrilen® for the U.S. and Canada.”
As a member of the Board of Directors of AEZS Gilles should know very well about the nature of the deals. With clinical trial costs, and risk behind it as well as potential approval for the tests most important market(children) in 2024 AEZS's diagnostic could be relicensed and become a cashcow. It could even be sold as non-core to finance a $40 million PGX immune booster plant as PGX is scaled-up to 100L with Natex thereby reaching commercial scale for the first time. It could also support a PGX partnership. At the AGM Gilles said they were in talks with serious potential partners who understand bioavailability as a unique selling point in the $4 billion CoQ10 market.
AEZS's cash, potential money from the sale of the diagnostic test or revenue as a cashcow, and tax loss carryforwards could fuel PGX development and partnering. Doing a financing to raise this type of money with warrants attached could be very dilutitive with none of the additional benefits(eg. tax loss carryforwards, infrastructure, other assets). The AEZS deal could be a creative way to finance CZO ahead of significant growth as noted by Ronnie Miller and AEZS's Chair.
“We are thrilled with this exciting transaction to merge with Aeterna and combine two complementary companies and teams, in support of our plan to drive significant growth,” said Ronnie Miller, Chairman of Ceapro. “After careful consideration, we believe this transaction is the best way forward for Ceapro and our valued shareholders.”
Carolyn Egbert, Chair of Aeterna: “Ceapro has well-established and growing commercial operations, with potential value-creating pipeline opportunities in large and growing cosmetic and consumer health markets. We believe that the new company will have the capital resources to support this ongoing growth, in addition to continuing to maximize the value of Aeterna’s existing assets, including Macimorelin.”