RE:RE:RE:RE:RE:Let's be more balanced and positivelscfa wrote: AEZS has 2 years of cash to fund its operations. The only way the merger makes sense is AEZS is willing to divert 1 years cash ($16 million) to CZO operations with the hopes that CZO can start generating cash on the advance by the end of 1 year.
There are certain streamlining savings like cancelling the TSX.V listing. Thet also only need one CFO, President and CEO and IR function. The Collective number of Board membes is also expected to be reduced. They can also share clinical trial resources. The merger also talks about evaluating the pipeline post merger and establishing priorities. Some of AEZS's programs could be cancelled. AEZS has also talked about potentially bringing in a partner for its AIM Biologicals program given the nature of the program. Resources from AEZS can help drive neat-term revenue generating opportunities at CZO as indicated by the news release. There's a lot that can happen. The end goal the news release said was to create a long-term sustainable company.
You are forgetting a new licensing deal for the diagnostic test. The pediatric trial results could come at any time given the trial was to be fully enrolled at the end of 2023. What is a new licensing deal worth(upfront, milestone, royalties); especially given the test could soon be sold in the most important market(children). This is expected to further support building awareness in the adult market where growth hormone deficiency testing suffers from a lack of awarenesss. Lack of growth hormone in adults can affect body composition, muscle tone, cardiovascular parameters, quality of life and lifespan. It is a needed product and a better test like AEZS's could drive demand there too..
"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. The analyst expects the product to gain traction in Europe, too, given, he wrote, it is safe, is as accurate as standard insulin tolerance testing (ITT), and unlike ITT, it can prevent adult growth hormone deficiency overdiagnosis." 9/8/22 US Co. To Regain All Rights to Its AGHD Diagnostic Test (streetwisereports.com)
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AEZS's diagnostic test deal with Strongbridge was signed 6 years ago last month. Using US CPI to adjust for inflation the US$24 million upfront AEZS received would now be equal to US$29.39 million or C$39.7 million adjusted for inflation. That's just the upfront payment. AEZS was also to receive US$5 million upon approval for the pediatric market and to pay to support the pediatric clinical trial. The peiatric trial was to be fully enrolled in December 2023. There were also significant potential milestone payments linked to sales. What AEZS will receive for a new North American diagnostic deal remains to be seen as pediatric approval potentially looms this year; but Gilles is in a position to know the terms of the deals being talked about as a mamber of AEZS's Board of Directors. prophetoffactz wrote:Tencents says: It was easy for Stonebridge to agree C71m knowing the US24 m upfront would never be paid...
"Under the terms of the license and assignment agreement, Strongbridge will make an upfront payment of $24 million to Aeterna Zentaris within five days of the effective date of the agreement." Strongbridge news release
That's C$32 million alone upfront.
When its licensed this time it could also be with FDA approval for the key childhood market and with the pediatric trial costs, risks, and time to approval for the key childhood market in the past. Strongbridge licensed the test 3-4 years before expected pediatric approval. There was to be a US$5 million payment upon pediatric approval. That would be C$38.65 million.
There was to be another US$15 million in payments tied to achieving annual sales of US$25 to US$50 million. Then there are the royalties that could be monitized. - US$4,000,000 on achieving US$25,000,000 annual net sales,
- US$10,000,000 on achieving US$50,000,000 annual net sales,
- US$20,000,000 on achieving US$100,000,000 annual net sales,
- US$40,000,000 on achieving US$200,000,000 annual net sales, and
- US$100,000,000 on achieving US$500,000,000 annual net sales.