C$40 million market capBefore the merger $40 million market cap was $.50 per share for CZO and CZO was thought to be trading for the value of its base business alone before the major client's reorganization.
After the merger $40 million market cap is $.25 per CZO share but now CZO should have ~$.25 per share in cash at the end of Q1 2024 wiith CZO's near term revenue generating opportunites fully financed. CZO's major client has returned in Q1 2024 and a dry powder beta glucan has also been developed with Symrise evaluating it for the Chinese market. The malted avenanthramide technology has been developed with a major potential client receiving samples for food applications. AEZS's diagnostic test has completed enrollment and could soon be licensed for the pediatric market for the first time. AEZS's previous North American diagnostic deal had an inflation-adjusted upfront payment alone of C$40 million plus a potential US$5 million milestone payment for pediatric approval and coverage of pediatric trial costs. Then there were the potential royalties. What's the value of CZO's base business 2.0 worth with the diagnostic tests?
PGX is now within about 6 months of potential small-scale commercial volume and the decision point for mass industrialization with Natex. This could support the anticipated PGX licensing deal. Last AGM CZO said they were in discussions with serious potential partners who understand bioavailability as a unique selling point for CoQ10 in a $4 billion market. The significant resources from the merger with AEZS could further support a strong deal.
With each dose level of the avenanthramide pill taking about one month in the human trial CZO may have cleared the 240mg single dose level this month. That would be 4 of the 6 proposed dose levels cleared. With clearence of the 120mg dose level potentially imminent and no serious adverse events reported CZO said in a news release: "These results are very promising given that the higher the dose without safety concerns, the larger the potential for extending to various inflammation-based diseases."
AEZS's two leading drugs target markets worth C$7 billion and may be nearing human clinical trial decision points and regulatory clarity concerning human trial advancement. Concerning one product: "Meet with regulatory authorities to determine the development path forward; Company expects such a meeting in Q4/2023, and as outcome, an abbreviated safety and toxicology program as the active principle ([1-34]-PTH fragment) is already approved and in use." For the other product in an October presentation data from a Harvard scientist was expected very soon using their specific models. They have worked on previous drugs for the disease. Getting analyst/market buy-in for these programs would be very positve given the C$7 billion potential market opportunity and the cash burn. H.C. Wainwright has had a US$15 price target for AEZS and Bloom Burton assisted CZO in the acquistion. There has been a $.23 bid for millions of shares recently.