COSCIENS Biopharma Inc. Reports Second Quarter 2024 Financial Results

Rhea-AI Summary

COSCIENS Biopharma Inc. (NASDAQ: CSCI) reported its Q2 2024 financial results, highlighting a net loss of $1.4 million ($0.64 per share) compared to $0.9 million ($0.47 per share) in Q2 2023. The company ended the quarter with $27.8 million in cash. Total revenue increased to $2.3 million from $1.4 million in the same period last year, driven by higher sales of Avenanthramides, Oat Beta Glucan, and Oat Oil.

Operating expenses rose to $4.5 million from $1.9 million, primarily due to increased R&D costs and administrative expenses related to the recent Aeterna-Ceapro acquisition. The company expects to announce top-line data from its DETECT-trial evaluating macimorelin for childhood-onset growth hormone deficiency diagnosis in Q3 2024.

Positive

• Revenue increased by 64% to $2.3 million in Q2 2024 compared to Q2 2023
• Strong cash position of $27.8 million at the end of Q2 2024
• Upcoming DETECT-trial results for macimorelin expected in Q3 2024

Negative

• Net loss increased to $1.4 million in Q2 2024 from $0.9 million in Q2 2023
• Operating expenses more than doubled to $4.5 million in Q2 2024 from $1.9 million in Q2 2023
• Loss per share increased to $0.64 in Q2 2024 from $0.47 in Q2 2023

Insights

Financial Analyst

COSCIENS Biopharma's Q2 2024 results reveal a mixed financial picture. While revenues increased by 64.3% year-over-year to $2.3 million, the company's net loss widened to $1.4 million from $0.9 million in Q2 2023. The increased loss is primarily attributed to higher R&D and SG&A expenses, which more than offset revenue growth. With $27.8 million in cash, COSCIENS has a runway to fund operations, but investors should monitor the burn rate closely. The company's focus on cost reduction and portfolio prioritization could be important for future profitability.

Medical Research Analyst

The upcoming DETECT-Trial results for macimorelin in Q3 2024 are a significant catalyst for COSCIENS. This pivotal study evaluating macimorelin for diagnosing childhood-onset growth hormone deficiency (CGHD) could potentially expand the drug's market. Currently approved for adult growth hormone deficiency diagnosis, a positive outcome in children could substantially increase macimorelin's utility and market potential. However, investors should note that clinical trial results are inherently uncertain and the outcome will be critical in determining the company's future in this therapeutic area.

Market Research Analyst

COSCIENS' diversified portfolio spanning cosmeceuticals, nutraceuticals and pharmaceuticals presents both opportunities and challenges. The increased sales of Avenanthramides, Oat Beta Glucan and Oat Oil indicate growing demand in the nutraceutical segment. However, the company's ability to balance resources across multiple product lines while prioritizing high-potential assets will be crucial. The ongoing post-merger integration and portfolio review could lead to strategic shifts, potentially impacting future revenue streams and R&D focus. Investors should watch for the upcoming "fulsome update" on synergies and cost reductions, as this will provide insights into COSCIENS' future direction and operational efficiency.

                Data from pivotal DETECT-Trial evaluating macimorelin for the diagnosis of childhood-onset growth hormone deficiency expected in Q3 2024

Company ended the quarter with US$27.8 million in cash        

TORONTO, ONTARIO, Aug. 13, 2024 (GLOBE NEWSWIRE) -- COSCIENS Biopharma Inc. (NASDAQ: CSCI) (TSX: CSCI) (“COSCIENS” or the “Company”), a specialty biopharmaceutical company which develops and commercializes a diversified portfolio of cosmeceutical, nutraceutical and pharmaceutical products, today reported its financial and operating results for the quarter ended June 30, 2024 and provided a corporate update.

“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.

Summary of Second Quarter 2024 Financial Results

All amounts are in U.S. dollars.

Cash and cash equivalents

The Company had $27.8 million in cash and cash equivalents at June 30, 2024.

Results of operations for the three-month period ended June 30, 2024

For the three-month period ended June 30, 2024, we reported a net loss of $1.4 million, or $0.64 loss per common share, as compared with a net loss of $0.9 million, or $0.47 loss per common share for the three-month period ended June 30, 2023. The $0.5 million increase in net loss is primarily due to increases in both research and development costs of $0.8 million and selling, general and administrative costs of $1.8 million offset by an increase in other income of $1.9 million and an increase in income tax recovery of $0.2 million.

Revenues

• Our total revenue for the three-month period ended June 30, 2024 was $2.3 million as compared with $1.4 million for the same period in 2023. This increase of $0.9 million was due to higher sales of Avenanthramides, Oat Beta Glucan and Oat Oil in the quarter.
  

Operating Expenses

• Our total operating expenses for the three-month period ended June 30, 2024, was $4.5 million as compared with $1.9 million for the same period in 2023. This increase of $2.6 million was due to higher research and development costs associated with the Avenanthramides and DETECT clinical trials of $0.8 million and selling, general and administrative costs of $1.8 million due primarily to the acquisition transaction recently completed between Aeterna and Ceapro.
  

Results of operations for the six-month period ended June 30, 2024

For the six-month period ended June 30, 2024, we reported a consolidated net loss of $2.8 million, or $1.39 loss per common share, as compared with a consolidated net loss of $1.1 million, or $0.62 loss per common share for the same period in 2023. The $1.7 million increase in net loss is primarily due to increases in research and development costs of $1.5 million and selling, general and administrative costs of $2.4 million offset by an increase in other income of $1.9 million and a decrease in gross margin of $0.3 million.

Revenues

• Our total revenue for the six-month period ended June 30, 2024 was $4.4 million as compared to $4.0 million for the same period in 2023. This increase of $0.4 million was due to higher sales of Avenanthramides, Oat Beta Glucan and Oat Oil in the quarter.
  

Operating Expenses

• Our total operating expenses for the six-month period ended June 30, 2024, was $7.4 million as compared with $3.5 million for the same period in 2023, representing an increase of $3.9 million. This increase was due to higher research and development costs associated with the Avenanthramides and DETECT clinical trials of $1.5 million and selling, general and administrative costs of $2.4 million due primarily to the acquisition transaction recently completed between Aeterna and Ceapro.
  

Consolidated Financial Statements and Management's Discussion and Analysis

For reference, the Management's Discussion and Analysis of Financial Condition and Results of Operations for the second quarter 2024, as well as the Company's consolidated financial statements as of June 30, 2024, will be available on the Company's website (www.cosciensbio.com) in the Investors section or at the Company's SEDAR+ and EDGAR profiles at www.sedarplus.ca and www.sec.gov, respectively.

About COSCIENS Biopharma Inc.

COSCIENS is a specialty biopharmaceutical company engaged in the development and commercialization of a diverse portfolio of pharmaceutical and diagnostic products, including those focused on areas of significant unmet medical need. One of COSCIENS’ lead products is macimorelin (Macrilen; Ghryvelin), the first and only U.S. FDA and European Commission approved oral test indicated for the diagnosis of adult growth hormone deficiency (AGHD). COSCIENS is also engaged in the development of therapeutic assets and proprietary extraction technology, which is applied to the production of active ingredients from renewable plant resources currently used in cosmeceutical products (i.e., oat beta glucan and Avenanthramides which are found in leading skincare product brands like Aveeno and Burt’s Bees formulations) and being developed as potential nutraceuticals and/or pharmaceuticals.

The Company is listed on the NASDAQ Capital Market and the Toronto Stock Exchange, and trades on both exchanges under the ticker symbol “CSCI”. For more information, please visit COSCIENS website at www.cosciensbio.com.

Forward-Looking Statements

Certain statements in this news release, referred to herein as "forward-looking statements", constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995, as amended, and "forward-looking information" under the provisions of Canadian securities laws. All statements, other than statements of historical fact, that address circumstances, events, activities, or developments that could or may or will occur are forward-looking statements. When used in this news release, words such as "anticipate", "assume", "believe", "could", "expect", "forecast", "future", "goal", "guidance", "intend", "likely", "may", "would" or the negative or comparable terminology as well as terms usually used in the future and the conditional are generally intended to identify forward-looking statements, although not all forward-looking statements include such words. Forward-looking statements in this news release include, but are not limited to, statements relating to: our statements and expectations regarding the ongoing integration efforts and plans to identify synergies and cost reductions, and the timing of top-line data from the DETECT-trial.

Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by the Company as of the date of such statements, are inherently subject to significant business, economic, operational and other risks, uncertainties, contingencies and other factors, including those described below, which could cause actual results, performance or achievements of the combined Company to be materially different from results, performance or achievements expressed or implied by such forward-looking statements and, as such, undue reliance must not be placed on them.

Forward-looking statements involve known and unknown risks and uncertainties which include, among others: the combined Company’s present and future business strategies; operations and performance within expected ranges; anticipated future cash flows; local and global economic conditions and the environment in which the combined Company operates; anticipated capital and operating costs; uncertainty in our revenue generation from our marketed products, product development and related clinical trials and validation studies, including our reliance on the success of the DETECT-trial for Macrilen^™ (macimorelin); results from our other products under development may not be successful or may not support advancing the product; our ability to raise capital and obtain financing to continue our currently planned operations; our now heavy dependence on sales by and revenue from our main distributor of our legacy Ceapro products (including AVA and OBG) and its customers, the continued availability of funds and resources to successfully commercialize the product; the ability to secure strategic partners for late stage development, marketing, and distribution of our products, including our ability to enter into a new license agreement or similar arrangement following the termination of the license agreement with Novo Nordisk AG for rights to Macrilen^™ in North America; our ability to enter into out-licensing, development, manufacturing, marketing and distribution agreements with other pharmaceutical companies and keep such agreements in effect; our ability to protect and enforce our patent portfolio and intellectual property; and our ability to continue to list our common shares on the NASDAQ Capital Market.

Investors should consult our quarterly and annual filings with the Canadian and U.S. securities commissions for additional information on risks and uncertainties, including those discussed in our Annual Report on Form 20-F and MD&A filed under the Company’s profile on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov. We disclaim any obligation to update any such risks or uncertainties or to publicly announce any revisions to any of the forward-looking statements contained herein to reflect future results, events or developments, unless required to do so by a governmental authority or applicable law.

No securities regulatory authority has either approved or disapproved of the contents of this news release. The Toronto Stock Exchange accepts no responsibility for the adequacy or accuracy of this news release.

Issuer:

Gilles R. Gagnon
President & CEO
ggagnon@cosciensbio.com
+1 (780) 421-4555

Investor Contact:
Jenene Thomas
JTC Team
T (US): +1 (833) 475-8247
E: jenene@jtcir.com

FAQ

What were COSCIENS Biopharma's (CSCI) Q2 2024 financial results?

COSCIENS Biopharma reported a net loss of $1.4 million ($0.64 per share) in Q2 2024, compared to $0.9 million ($0.47 per share) in Q2 2023. Revenue increased to $2.3 million from $1.4 million year-over-year.

When will COSCIENS Biopharma (CSCI) announce results from the DETECT-trial for macimorelin?

COSCIENS Biopharma expects to announce top-line data from the DETECT-trial evaluating macimorelin for childhood-onset growth hormone deficiency diagnosis in Q3 2024.

How much cash did COSCIENS Biopharma (CSCI) have at the end of Q2 2024?

COSCIENS Biopharma reported $27.8 million in cash and cash equivalents as of June 30, 2024.

What caused the increase in COSCIENS Biopharma's (CSCI) operating expenses in Q2 2024?

Operating expenses increased due to higher R&D costs associated with Avenanthramides and DETECT clinical trials, and increased selling, general and administrative costs related to the recent Aeterna-Ceapro acquisition.