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  5. CSCI: Cosciens seems to be in a death spiral since the merger. [COSCIENS Biopharma Inc.]
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Q: Cosciens seems to be in a death spiral since the merger. Is there any hope here?
Asked by Rick on January 28, 2025
5i Research Answer:

The issue here is largely size. At $14M market cap, it is so small it is very hard for investors to take an interest. Down 63% in a year, many are likely just throwing in the towel here. It has lots of cash, in fact a bit more than its market cap (as of Sept 30) but cash flow is negative and the cash may only last a year. More capital is going to be needed, which is another reason why investors may not be interested. It has a bit of revenue, but has never made money. We would simply consider it far too risky for investment consideration.