TORONTO, ONTARIO — November 12, 2025 — Leads & Copy — COSCIENS Biopharma Inc. (TSX: CSCI) reported its Q3 2025 financial results, highlighting a voluntary delisting from Nasdaq, while retaining its listing on the TSX. The company’s restructuring efforts have led to a significant reduction in cash outflow, with operating expenses down 59% compared to Q3 2024.
According to Chief Executive Officer Anna Biehn, the focus in Q3 was to successfully execute zero-based budgeting and restructuring plans to establish a sustainable cost structure. Management and the Board are encouraged by the early results and have made substantial progress in assessing existing projects, business development efforts, and future growth opportunities.
The core business remains a strong priority. Management implemented measures to drive discipline in base business management, forecasting, and an end-to-end procurement to manufacturing review. As a result, Q3 gross margins improved by 700 basis points over the previous quarter, driven by cost cuts and operational improvements.
COSCIENS launched a zero-based budgeting initiative in Q2 to improve organizational efficiency, including a reduction in headcount to align costs with strategic priorities. This initiative began yielding results in Q3, with overall operating expenses down 59% compared to Q3 2024, leading to significantly lower cash outflow for the quarter. The company will continue seeking lower operating costs.
As announced, the company voluntarily delisted from Nasdaq, effective September 5, 2025, while maintaining its TSX listing. FINRA’s Department of Market Operations assigned the trading symbol “CSCIF” to the company’s common shares for quoting and trading on the informal OTC market in the United States, beginning September 4, 2025.
On November 3, 2025, COSCIENS applied to the OTC Markets Group Inc. to have its common shares quoted for trading on the OTCQB® Venture Market. However, there is no guarantee that the application will be approved or that any broker will make, or continue to make, a market in the company’s common shares in the U.S., either on the informal OTC market or, if approved, on the OTCQB® Venture Market.
The company intends to file a Form 15-F with the SEC in the future to deregister from, and terminate its reporting obligations under, the Exchange Act, including its obligations to file and submit annual reports on Form 20-F and reports on Form 6-K in the U.S. with the SEC. Once the Form 15-F is filed, U.S. reporting obligations will be immediately suspended, and deregistration from the Exchange Act will be effective 90 days after filing, at which time the company’s U.S. reporting obligations will be fully terminated.
COSCIENS believes this strategic decision will enhance efficiency and reduce costs, elevating competitiveness and maintaining the company’s viability. As a life science company, it is important for the Company to continue to focus on both short term and future growth.
During Q3, the company undertook a strategic assessment of its key segments, with certain key results summarized below:
Active Ingredients: In addition to ongoing sales of beta glucan, avenanthramides, and oat oil across cosmeceutical, personal care, and veterinary health markets, the company is exploring new category expansion opportunities in food and beverage, dermatology, and pharmaceutical markets. Management evaluated the business plans for nutraceuticals products and strategically decided not to enter the consumer products market due to high costs, cost competitiveness, the need for strong brand marketing, and a lack of a direct-to-consumer distribution route to market. Instead, the concepts are being discussed with potential customers interested in buying active ingredients for the business to generate revenue within the company’s current portfolio.
Suspension of Juvente Cosmeceuticals Line of Business: As part of the strategic growth review, the company decided to suspend operations and is taking steps to wind down operations for the cosmeceutical line, JuventeDC, due to limited success in direct-to-consumer e-commerce channels.
Pharmaceuticals: Macrilen – The Company previously announced that the Phase 3 DETECT trial evaluating Macrilen for the diagnosis of Childhood Onset Growth Hormone Deficiency (CGHD) did not achieve its predefined primary endpoints, the results still provided valuable insights to guide future development efforts. The Company began a strategic assessment of options in consultation with key opinion leaders and requested a Type C meeting with the FDA. Considering the known limitations in the established procedures to diagnose CGHD, the Company proposed to modify the ground truth determination, as a basis to assess the diagnostic performance of the Macrilen test. The FDA acknowledged the limitations of the current diagnostic framework which generates a high rate of false positives, but stated that redefining diagnostic thresholds is not within the FDA’s remit. The agency declined to accept the proposed alternative analysis, citing deviation from established diagnostic guidelines and concern about excluding patients from treatment eligibility. Consequently, full pediatric approval by the FDA under the current analytical proposal is unlikely at this time in the US market. The Company is evaluating its options for advancing the possible expansion of Macrilen into the US market including the possibility of submitting data for a subgroup of the pediatric population to the FDA. Additionally, the Company is evaluating seeking EMA Scientific Advice. The result of these actions could determine a possible path forward for the pediatric indication in the US and European markets. Simultaneously the Company continues to evaluate all options, including additional licensing, sale and partnership opportunities in other key markets as it pertains to the adult indication.
The company’s inflammation-related program (“AvenActive”) completed its Phase 1 study without significant safety concerns. A total of 20 patients were enrolled in the Phase 2a portion which is designed to gather information on safety, pharmacokinetics and initial signs of activity. The Phase 2a study concluded in Q3 2025 and the complete study results will be available in the coming months.
Technology: The company has a license for Pressurized Gas eXpanded (PGX) Technology, a patented technology with several key advantages over conventional drying and purification technologies. Construction of the PGX unit in Edmonton was completed in Q4 of 2024 and the PGX unit in Austria was completed in 2025, with technical validation for both units ongoing through Q3 of 2025. The Company is to reach out to potential industry partners with the capability to commercialize specialty materials such as yeast beta glucan or to leverage the technology in their own operations.
Summary of Third Quarter 2025 Financial Results: The company had $8.5 million in cash and cash equivalents on September 30, 2025. For the three-month period ended September 30, 2025, COSCIENS reported a consolidated net loss of $1.8 million, or $0.57 in net loss per common share, compared to a consolidated net loss of $5.8 million, or $1.85 in net loss per common share, for the same period in 2024. Total revenue for the three-month period was $1.5 million, compared to $1.9 million in 2024. Total operating expenses decreased to $2.9 million from $7.3 million in the same period last year.
For the nine-month period ended September 30, 2025, the company reported a consolidated net loss of $8.2 million, or $2.59 loss per common share, compared to a consolidated net loss of $8.6 million, or $3.58 loss per common share, for the same period in 2024. Total revenue for the nine-month period was $5.7 million, compared to $6.2 million in 2024. Total operating expenses decreased to $10.3 million from $14.5 million in the same period last year.
The Management’s Discussion and Analysis of Financial Condition and Results of Operations for Q3 2025, and the company’s consolidated financial statements as of September 30, 2025, are available on the company’s website or at the SEDAR+ and EDGAR profiles.
COSCIENS Biopharma Inc. is a life science company focused on the development of natural, plant-based active ingredients and engaged in the commercialization of pharmaceutical and diagnostic products. The company’s common shares are listed on the TSX under the symbol “CSCI”.
Anna Biehn, Chief Executive Officer, can be contacted at ABiehn@cosciensbio.com.
Investor Relations can be contacted at IR@cosciensbio.com.
Source: COSCIENS Biopharma Inc.
