RE:Mergers and Boozeboazklinghorn, "If you have a broken company merging with another broken company wont fix it".
AEZS is a bunch of cash with a diagnostic about to become an expected cashcow. Gilles is inside of AEZS and should thereby know the terms of the licensing deals being discussed. AEZS is essentially a financing and cashflow to support CZO's plans for significant growth. Clinical trials are complete for the diagnostic and other parties will manage the commercial roll-out.
“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.”
CZO recently highlights numerous opportunities for near-term growth in a news release. The merger is expected to fully finance CZO's near-term revenue generating opporutnities.
What you are arguing essentially suggests that a company should never do a financing to finance its growth. AEZS's cash and cashflow from its diagnostic do just that. Additionally, AZES has a few pipeline opportuntiies that diversify CZO's pipeline and human infrastructure as CZO become more involved in clinical development given the advance of its pipeline. AEZS has also considered partnerships for its pipeline(eg. AIM Biologicals) to further manage risk. Once the merger is completed some pipeline programs can also be cut a news release suggests.