COSCIENS Biopharma Inc T.CSCI

RE:wainwright does not follow cosciens

[prophetoffactz]

Perplexity Ai "HC Wainwright's last target price for Aeterna Zentaris was set at $15.00 on November 13, 2023."

November 13, 2023 was about 1 month before the announcement of the proposed merger; essentially at the bottom of the biotech market. H.C. Wainwright reduced its target from US$28. While it may have been due to company specific factors since then the S&P Biotech ETF is up ~45%. Adjusting H.C. Wainwright's US$15 target price for AEZS by 45% and given it was a merger of equals that could suggest a target price of ~C$72.5 assuming 4 million CSCI shares.

It will be interesting to see if H.C. Wainwright reinitiates coverage when the new company plan is presented along with the potential pediatric diagnostic data. H.C. Wainwright also has a conference September 9-11 which is less than one month away. H.C. Wainwright didn't participate in the merger, however. Bloom Burton and Raymond James did.

The pediatric diagnostic results are also expected this quarter. AEZS expected a new deal based on outreach July 2023 according to a news release. Gilles should have known about the discussions concerning a potential deal as a Director of AEZS. The proposed merger was announced 5 months later.

Since the announcement of the proposed merger CSCI has been working to complete the merger and has been under a portfolio review with a "fulsome update shortly". It has been hard for an analyst to cover the stock until new plans are official and the merger completed. The quality of the pediatric trial data and a potential licensing deal could have a very meaningful impact on the forward plan too. A number of key valuation milesones are now before the new company of interest to analysts and institutional investors.   

Yesterday:

 “We are very pleased with the ongoing post-merger integration process and expect to be providing a fulsome update shortly. The newly combined management team is currently completing our detailed work to identify synergies and cost reduction opportunities as we review and prioritize our now combined portfolio of programs and products. In that review, our goal remains to focus our resources and cash on those programs and products that we believe will allow us to propel the Company into its next phase of growth as a diversified biopharmaceutical company. We are also excited that we remain on track to obtain and announce in Q’3 2024 top-line data from our recently completed Phase 3 safety and efficacy study AEZS-130-P02 (the "DETECT-trial") evaluating macimorelin for the diagnosis of Childhood Onset Growth Hormone Deficiency (“CGHD”),” stated Gilles Gagnon, M.Sc., MBA, President and CEO of COSCIENS.