Mr. Peter Puccetti reports

COSCIENS PROVIDES STRATEGIC UPDATE

Cosciens Biopharma Inc. has made a strategic decision to cease financing its German subsidiaries, Aeterna Zentaris GmbH and Zentaris IVF GmbH. As a result, the company expects the German subsidiaries to commence a structured insolvency process in the near future.

The company has historically pursued the development of its pharmaceutical therapeutic assets, including its main pharmaceutical asset, Macrilen (macimorelin), through its German subsidiaries. Macrilen is a Food and Drug Administration- and European Medicines Agency-approved oral test indicated for the diagnosis of adults with growth hormone deficiency, and is commercially available in a number of countries, but the biopharmaceutical business has historically operated at a loss. The long-term viability of the business has always been largely dependent on the company's ability to expand the market for Macrilen, either by obtaining FDA approval for a pediatric indication in the United States or otherwise. In light of the disappointing results of Macrilen's phase 3 Detect trial and subsequent Type C meeting with the FDA (which represented a significant setback to the company's hopes for a full pediatric approval in the U.S.), the company has been undertaking a strategic review of its options, including by exploring the viability of: (i) alternative options for expansion into the U.S. market; (ii) a possible sale of the product and/or of the German subsidiaries; and (iii) additional licensing and partnership opportunities. Despite the recently announced distribution agreement with Wuzhou Drug International Trading Ltd., it was determined that the best path forward for the company and its shareholders was to cease providing any further financing to the German subsidiaries.

As a result of the expected insolvency process, the company anticipates surrendering its rights to Macrilen and significantly reducing its continuing operating expenses.

Peter Puccetti, interim chief executive officer and chairman of the board, commented: "The board did not make this decision lightly, but we firmly believe it marks a significant and positive step towards the company's goal of achieving profitability. Going forward, the company will continue to focus on maximizing the profitability of its active ingredients business and to evaluate other opportunities."

About Cosciens Biopharma Inc.

Cosciens is a life science company focused on the development of natural, plant-based active ingredients, leveraging the company's proprietary manufacturing and extraction technologies to develop Avenanthramides and Beta Glucan active ingredients currently used in leading skin care brands worldwide.

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