Daniel Ward, CFA

(2/3) Key factors: ✅Strong balance sheet ✅Solid cash runway ✅Clean capital structure ✅Pipeline potential / newsflow ✅Low MC / float Why focus on stocks with low MCs? Larger investors with more resources ignore them, leaving opportunity for significant outperformance.

"Small-cap and midcap biotech stocks recently traded at an enterprise-value to cash ratio of 1.2x. Historically, this group trades at three times cash. “Biotech looks inexpensive at these levels”. - Jefferies

@Clem69464530 Not surprised to hear that - have to tread carefully for sure!

@KaczynskiTrades I do not! Just a reader of posts and not posting at this point.

@danwardbio Do you post anywhere else since you left X?

$AEZS $CRPOF Merger News Commentary -I’m still digesting. -The stock trading <2% of shares and closing flat shows the market’s low enthusiasm. -The board overlap between AEZS and CRPOF creates questions. -If I vote no, I am fairly confident shareholders can reject merger.

@BiotechXGuru I've told them I plan to vote no based on the available information. I've also told them that I expect my vote and vote of those I know will be sufficient to decide the outcome of the vote.

@BiotechXGuru I like NURO. If had to be PULM or AEZS, then I’d do AEZS.

Bought more $REVB ~1.08-1.09. Current holdings: ~2.0%-2.5% $AEZS ~0.5%-1.0% $REVB <0.5% $ARTL <0.5% $NVIV <0.5% $PULM

@BiotechXGuru Definitely would think they could manage that, yes

@BiotechXGuru Don’t have answers to all of those question at the moment. If the merger doesn’t go through, they’ll need to continue to operate the business.

@BiotechXGuru The money is not gone. AEZS itself has plenty there. Pending more information, I’ll vote no and will recommend that other shareholders I know vote no. Based on that, this merger isn’t going to go through.

@ValueTrader101 Yes I plan to vote No as of now

@danwardbio i assume you'll vote NO ? Iam going to vote No as well. Maybe need to communicate with other retail holders to Vote No as well.

@ShipSeven Probably too diversified at this point. Hard to break down what's actually there.

@danwardbio I don't understand why there is no insider buying at $mdgs. Seems so obviously undervalued, well diversified across Industries and a relatively such a safe bet compared to the peer group. Makes you wonder if there is anything wrong.

(1/3) Portfolio update. Decided to exit $CYTO today. Looks like additional shares coming for loan payback. I sat through decline of >50% in CYTO, all to exit for a loss of ~7%-8%. That’s an okay result for taking a big gamble. Entry average of $4.93 and exit average $4.56.

Next Steps on $AEZS -I will to continue to evaluate the news. -I think AEZS is ripe for an activist. -Is return of capital to shareholders a better option for shareholders? -I am keeping my options open as I learn more about this merger opportunity and other options that exist.

@dcsf08 I've had some wins and losses. AEZS obviously had been poor. Had a good win on ARTL, though.

@danwardbio It's been an incredibly rough year for biotech and especially small and microcaps. You are still holding on to those positions? They must all be down > 50%

@ValueTrader101 @BioStocks Doesn’t seem like an optimal use of shareholder capital, but stock is flat as already so cheap as it is. I’d rather they close up shop and distribute cash to shareholders. We need an activist.

@BioStocks @danwardbio any thoughts on this ?

$AEZS and $CRPOF announce all-stock merger agreement.

Some ADC stocks riding on $ABBV $IMGN $MRSN +22% $STRO +22% (LOL) $ADCT +16% $CRBP +9% $MRUS +7% $CTMX +7% $ZYME +6%

@ValueTrader101 @DiekstraCapital Haven’t run the exact numbers, but believe its been market perform for the past month or so; given that, I don’t really mind low volume. Now, of course, crappy performance prior to the past month is the problem.

@danwardbio @DiekstraCapital AEZS no volume or move despite big XBI move. Volume is 0

After exiting $ARTL $3.30-$3.40 after hours yesterday, reinvested back into $ARTL $1.85-$1.90 after hours today. Thank you sellers for the opportunity. Glad to be back invested in the business.

Freeline, after cuts, agrees to take-private deal with Syncona biopharmadive.com/news/freeline-… $FRLN by @NedPagliarulo

@DiekstraCapital ART27.13 in Phase 2 and other assets in preclinical. Not bad for something trading at 0.3x book. It's trading at that level as people are skeptical at this point. We'll have to see and that may take some time.

@danwardbio And what about the pipeline of ARTL, do you see some potential there?

@DiekstraCapital Well, they have an approved drug and are in Phase 3 for indication expansion with that asset. Pipeline is early stage otherwise. Like you said, business currently trades 0.3x book value or so.

@danwardbio I see. Apart from the loads of cash left (net cash per share $5,50 I think), does AEZS also have some promising drugs in the pipeline?

@DiekstraCapital I do not have any insight. Offer is at 1.60 now so seems to be acting decently today.

@danwardbio Daniel, do you know who the seller in AEZS is, and how much shares he still has to offer?