Cosciens Biopharma (CSCI) Q3 2024 earnings summary

Executive summary

• Completed merger integration with Ceapro Inc. and prioritized pipeline, focusing on nutraceutical and cosmeceutical products while discontinuing investment in certain pharmaceutical programs.

• Advanced Phase 1/2a clinical trial for Avenanthramide anti-inflammatory product, with Phase 1 enrollment expected to complete by year-end 2024 and Phase 2a by Q3 2025.

• Phase 3 DETECT trial for macimorelin in childhood onset growth hormone deficiency failed to meet primary endpoints; further investment under review.

Financial highlights

• Ended Q3 2024 with $20.0 million in cash and cash equivalents.

• Q3 2024 net loss was $5.8 million ($1.85 per share), compared to $0.8 million ($0.42 per share) in Q3 2023, mainly due to higher R&D, SG&A, and a $1.5 million impairment expense.

• Q3 2024 revenue was $1.9 million, down $0.1 million year-over-year, with lower sales of Avenanthramides, Oat Beta Glucan, and Oat Oil, partially offset by macimorelin sales.

• Nine-month 2024 net loss was $8.6 million ($3.58 per share), up from $1.9 million ($1.04 per share) in the prior year period, driven by increased R&D, SG&A, and impairment expense.

• Nine-month 2024 revenue was $6.3 million, up $0.4 million year-over-year, reflecting higher sales of core products and macimorelin.

Outlook and guidance

• Phase 1 enrollment for Avenanthramide anti-inflammatory trial expected to complete by end of 2024; Phase 2a completion targeted for Q3 2025.

• Commercial launch of chewable Oat Beta Glucan for cholesterol reduction anticipated in Q1 2025.

• Yeast beta glucan capsule for immunity targeted for Health Canada submission and commercialization in Q2 2025.

• Commissioning and validation of PGX technology at Natex Facility in Austria expected in Q1 2025.