Company: CSCIF
Filing Date: 2025-04-09
Form Type: 20-F
Source: 0001641172-25-003456
Chunk: 45

Company: COSCIENS Biopharma Inc.
Filing Date: 2025-04-09
Form: 20-F
Item: Item 5
Chunk 45
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Item
5. Operating and Financial Review and Prospects”.

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The active ingredient product technology industry
involves the development of proprietary extraction technologies and the application of these technologies to the production and development
and commercialization of active ingredients derived from oats and other renewable plant resources for the healthcare and cosmetic industries.
Active ingredients produced include oat beta glucan and avenanthramides. These and similar manufactured products are sold primarily through
distribution networks.

The Company continues to grow its customer base and
presence in the personal care market and to explore and validate new product applications for its established value drivers, avenanthramides
and oat beta glucan, as well as for new products such as alginate and beta glucan from yeast to penetrate into the nutraceutical and
pharmaceutical markets. The Company’s primary marketing strategy is to sell principally through a distribution network instead
of selling directly to end-users and as a result sales and marketing expenses are negligible.

Over the last decade, the Company’s development
projects have focused on its expertise in oats and developing new innovative natural health care products to address global needs. Oats
have a host of well-documented health care benefits. However, in order to exploit these opportunities, numerous challenges must be overcome,
including securing adequate and quality feedstock, developing proper formulations, achieving manufacturing scale-up, and completing scientific
testing. The Company’s dedicated team is constantly focused on overcoming these challenges to stay profitable and ahead of competitors
by successfully fine-tuning and implementing proprietary enabling technologies.

Chemical complexes/Delivery systems:

  Pre-clinical                                                                             
  Research: Yeast beta glucan/CoQ10: planned to be developed as an immune/energy booster.  
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Technology:

  PGX                                                                                             
  Technology: Demo scale: 10 liters vessel: completed. Pilot scale: 50 liters vessel: completed.  
  100 liters: expected to be completed by end of Q2, 2025 along with Austrian based Natex GmbH.   
  Both the 10L and 50L vessels are located at the Company’s Edmonton Alberta facility,            
  whilst the 100L vessel is being constructed at Natex GMBH’s Austrian facility.                  
  Yeast                                                                                           
  beta glucan to be used during the PGX pilot testing phases. Output from such capacity to        
  be considered as small-scale commercialization batches with a potential for commercialization   
  of yeast