TSXV:CZO - Post Discussion
Post by
prophetoffactz on Jan 12, 2024 5:52am
Capital
tigerpro, "
There is no way they can do capital increase in the future."
The merger is a capital increase without warrants and with significant other benefits. 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..." news release
Arguably the most important biotech executive in Canada the last 20 years is "thrilled": “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.” news release
AEZS is negotiating a new North American diagnostic deal right now with approval expected this year for the tests most important market(children). Gilles is in the catbird seat and should know the terms being negotiated. He is excited. H.C. Wainwright has a C$100 million market cap target for AEZS likely driven by the diagnostic. Novo Nordisk paid ~$250 million(cash, equity) plus tiered royalties for the rights previously. Novo Nordisk bought the rights from Strongbridge.
AEZS received US$24 million upfront from Strongbridge, and was to receive US$5 million for pediatric approval. Pediatric approval could happen this year. Adding an assumed ~US$10 million for the pediatric clinical trial costs that have now been incurred and US$14 million in potentially achievable near term milestones linked to annual net sales achieving US$50 million as below that is a total of potentially US$53 million in upfront and near-term payments. That's about C$71 million.
In addition AEZS was to receive 15%-18% royalties and 5% upon patent expiration. This could be monitized for a significant upfront payment for CZO's growth plan.
With approval for the pediatric market the clinical trial and regulatory risk as well as time to market have also been absorbed. AEZS can charge money for this. The deal with Strongbridge was six years ago. Significant growth in the growth hormone deficiency market also appears to have occurred and is forecast into the future. Lumos Pharma is developing "LUM-201 has the potential to increase treatment rates and treatment adherence among PEM-positive pediatric patients due to the more favorable oral administration route." https://www.globaldata.com/store/report/growth-hormone-secretagogue-receptor-type-1-drugs-in-development-analysis/
AEZS also has C$113 million in tax loss carryforwards and other pipeline assets that could be licensed as they reach human testing.
- 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.
- A wholly-owned subsidiary of Strongbridge Biopharma plc has snapped up the North American rights to Aeterna Zentaris Inc.‘s lead product, Macrilen.
- Aeterna Zentaris will get a much needed $24 million upfront, and royalties for the patent life of the drug, at a rate of 15% for sales up to $75 million and 18% above $75 million. After patent expiry, royalties will drop to 5%.
- Strongbridge will also pay milestone payments of up to $179 million on sales targets and on a pediatric U.S. approval, and will fund 70% of pediatric development costs.
- Post-review, Aeterna Zentaris strikes commercialization deal | BioPharma Dive
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