AEON Biopharma, Inc. (AEON)AEON

A Comprehensive Analysis of AEON Biopharma, Inc. (AEON):

1. Company Profile

a. History and Background

AEON Biopharma, Inc., formerly known as Biofrontera Inc., is a pharmaceutical company based in San Diego, California. It was incorporated in 1978 and has its origins in German skincare brand research, initially specializing in photoprotection solutions and topical antibiotics for acne and rosacea treatment. In 1987, Biofrontera Inc.'s American division, now AEON, was formed. The company transitioned over the following decades, focusing primarily on the development of topical treatments for various dermatologic applications and becoming a clinical-stage biopharmaceutical organization in the process.

b. Business Areas:

Currently, AEOBio Pharma's efforts concentrate on two primary business areas:

• Dermatology and Aesthetics: Development of topical and oral treatments for conditions including skin cancer, rosacea, and actinic keratosis.

• Inflammatory Diseases: Advancing the research of oral drug candidates to address diseases with significant unmet patient care, including cystic fibrosis and chronic cough associated with bronchiolitis obliterans syndrome (BOS).

c. Corporate Structure and Team:

The leadership team at AEON is composed of seasoned individuals holding expertise across diverse disciplines within pharmaceuticals, biotechnology, research & development, and financial administration:

Management:

• Vincent Perricone, Chief Executive Officer (CEO) and Chairman
• Michael Dorton, M.D. Chief Operating Officer (COO), Chief Financial Officer (CFO), Chief Business Strategy & Administration officer
• Ryan Mantor, M.D, Ph.D, EVP and Chief Medical officer, and Head of Global Regulatory and Safety
• Michael Bergamaschi - EVP & Chief Technology officer (CTechO).

The Board includes a group of directors, each holding extensive knowledge in various fields relevant to AEON's operations, including healthcare administration, venture funding, business strategy, and research & innovation, among several fields of specialization.

##2. Products and Market

a. Top Product Offerings:

• Zestrair: Inhaled formulation to address chronic cough, a significant issue in patients with chronic bronchitis, BOS.

###b. Market Share Analysis

• Zestrair: While approval was achieved, Zestrair is yet to attain a dominant position within the chronic lung cough treatment segment, facing rivalry against existing medications like Nuplazid.

Total Addressable Market (TAM)

The targeted total market encompasses around 3.7 million individuals with chronic cough in developed markets, including the U.S. and the European Union.

Financial Analysis:

Financial Overview: AEON's financials reflect the state of a pre-commercial, clinical- stage pharmaceutical company. The lack of commercially viable products has led to sustained net losses and limited revenue generation.

Dividends:

No dividends have been declared or issued to date as AEON focuses its resources on product and technology advancement.

Shareholder Returns:

Since the first quarter of 2018 (when AEON began trading publicly on Nasdaq) and through November 2023, cumulative returns have been negative, mirroring industry peers during a similar timeframe.

Growth Trajectory

Historical Financial Growth Analysis (2013 - 2017, Prior To Name and Focus Shift)

• Revenue: Increased from US$2.3M in 2013
  to approximately $26 million in 2017, demonstrating an upward trajectory primarily fueled through the sale of its marketed aesthetic product.

Future Projections

AEON's growth is contingent upon successful commercialization efforts and potential partnerships, considering that its core product portfolio, including Zestrair, requires regulatory approvals across geographies and entry into a competitive marketplace.

5. Market Analysis

• The global cough and bronchoconstriction treatment market has the prospect to reach a valuation of $3.4 Billion by the year

Competitive Landscape

Major industry rivals in this space involve Insmed (INSM) with its drug Arikayce for treating Non-tuberculous mycobacterial (NTM) lung disease.

Challenges & Opportunities

Key Challenges

• Competition in both current fields, aesthetics & cough treatments, with established players in both sectors
• Securing regulatory and commercial success for its principal drug candidates

Potential Opportunities

Successful development and launch of its lead investigational drug candidates would drastically change its market and revenue trajectory, especially with cough treatments like Zestrair, which are estimated as having the potential of becoming first-to-market medication for BOS, giving the organization a strong competitive head- start in a currently unmet medical necessity niche within this segment.

Acquisitions

• In the past 12 months: AEON has not engaged in any acquisitions, focusing primarily on internal clinical research, partnerships (such as the one with
  Laboratorios Vacher for commercializing A-301 in Mexico),
  and the regulatory approval process for their drug products.

7: A.I.-Powered Evaluation

An evaluation using A.I.-powered tools suggests AEON Biopharma has the potential to achieve success, but this is dependent upon a few crucial factors:

• Performance and acceptance of its main products
• Securing effective marketing and distribution networks
• The ability to overcome competition from entrenched companies and secure a market foothold

Disclaimer

This report provides an overview and is intended to serve informational purposes only, not to be used for investment advice or decision- making, as the financial markets can change rapidly.

Sources

• AEON Website

• Business News Articles

• SEC Filings

• Reuters

• Marketwatch