Ceapro (CZO.V), in the process of merging with Aeterna Zentaris Inc. (NASDAQ and TSX: AEZS), said Wednesday that its net loss in the first quarter swelled year over year. But it expects the return of a re-ordering pattern from one major customer and the expected shared benefits that should result from the upcoming merger of equals with Aeterna Zentaris to "significantly propel the company into its next phase of growth and unlock value as a diversified biopharmaceutical company."
The healthcare- and cosmetics-focused biotechnology company booked a first quarter net loss of near $1.9 million, or a loss of $0.02 per share, widening from a net loss of $385,050, or a loss of $0.00 per share. Ceapro attributed the higher net loss to lower sales, increased investments in research and development, and higher general and administrative expenses mostly due to professional fees incurred for its planned merger.
Revenue fell to $2.8 million from $3.5 million, driven by a lower oat oil sales. It said one major customer is gradually resuming ordering pattern with flagship product, avenanthramides.
Among highlights it cited advancement of several key milestones related to new product and technology development. The company said it is "making progress on multiple fronts" including the team at Montreal Heart Institute completing the first arm of the Phase 1 clinical study with avenanthramides and the team at Ceapro working to complete the scale-up of the PGX Technology at the Edmonton facility using fully defined yeast beta glucan.
"As we expect renewed growth with our active ingredients revenue generating base business and subject to the closing and successful integration of the merger with Aeterna Zentaris, the company expects to complete prioritized projects using cash on hand while continuing to assess different market initiatives to bring new business and unlock value," President and CEO Gilles Gagnon said in a statement.
The planned merger between Ceapro and Astern Zentaris is expected to close in the second quarter.