Aeterna Zentaris Provides Corporate Update
June 06 2019 - 2:06PM
Aeterna Zentaris Inc. (NASDAQ: AEZS) (TSX: AEZS)
today announced that it is reducing the size of its German
workforce and operations to more closely reflect the Company's
ongoing commercial activities in Frankfurt.
This restructuring will affect eight employees
in Frankfurt, Germany and is expected to result in approximately
US$800,000 of severance costs that is expected to be paid by
January 31, 2020.
The Company is also providing an update on the
previously disclosed securities class action lawsuit pending in the
U.S. District Court for the District of New Jersey, brought on
behalf of shareholders of the Company. The lawsuit alleges
violations of the Securities Exchange Act of 1934 in connection
with allegedly false and misleading statements made by the
defendants between August 30, 2011 and November 6, 2014
regarding the safety and efficacy of Macrilen™ (macimorelin) and
the prospects for the approval of the Company's New Drug
Application for the product by the FDA. In February 2018, the U.S.
court granted a motion for class certification in the case, and
this week the U.S. Third Circuit Court of Appeals dismissed an
appeal of that certification motion that had been brought by the
Company. The Company considers the claims that have been asserted
in the lawsuit to be without merit and is vigorously defending
against them. The Company cannot, however, predict at this
time the outcome or potential losses, if any, with respect to this
lawsuit. The Company continues to believe that substantially all of
the costs for its defense will be borne by the insurers who provide
directors' and officers' liability insurance to the Company,
subject to policy limits.
About Aeterna Zentaris Inc.
Aeterna Zentaris Inc. is a specialty
biopharmaceutical company engaged in commercializing novel
pharmaceutical therapies, principally through out-licensing
arrangements. Aeterna Zentaris is the licensor and party to a
license and assignment agreement with Novo Nordisk A/S to carry out
development, manufacturing, registration, regulatory, and supply
chain for the commercialization of Macrilen™ (macimorelin). In
addition, we are actively pursuing business development
opportunities for macimorelin in the rest of the world and to
monetize the value of our non-strategic assets.
Forward-Looking Statements
This press release contains forward-looking
statements (as defined by applicable securities legislation) made
pursuant to the safe-harbor provision of the U.S. Securities
Litigation Reform Act of 1995, which reflect our current
expectations regarding future events. Forward-looking statements
may include, but are not limited to statements preceded by,
followed by, or that include the words "will," "expects,"
"believes," "intends," "would," "could," "may," "anticipates," and
similar terms that relate to future events, performance, or our
results. Forward-looking statements involve known and unknown risks
and uncertainties, including those discussed in this press release
and in our Annual Report on Form 20-F, under the caption "Key
Information -Risk Factors" filed with the relevant Canadian
securities regulatory authorities in lieu of an annual information
form and with the U.S. Securities and Exchange Commission. Known
and unknown risks and uncertainties could cause our actual results
to differ materially from those in forward-looking statements. Such
risks and uncertainties include, among others, our now heavy
dependence on the success of Macrilen™ (macimorelin) and related
out-licensing arrangements and the continued availability of funds
and resources to successfully launch the product, our strategic
review process, the ability of the Special Committee to carry out
its mandate, the ability of Aeterna Zentaris to enter into
out-licensing, development, manufacturing and marketing and
distribution agreements with other pharmaceutical companies and
keep such agreements in effect, reliance on third parties for the
manufacturing and commercialization of Macrilen™ (macimorelin),
potential disputes with third parties, leading to delays in or
termination of the manufacturing, development, out-licensing or
commercialization of our product candidates, or resulting in
significant litigation or arbitration, and, more generally,
uncertainties related to the regulatory process, our ability to
efficiently commercialize or out-license Macrilen™ (macimorelin),
the degree of market acceptance of Macrilen™ (macimorelin), our
ability to obtain necessary approvals from the relevant regulatory
authorities to enable us to use the desired brand names for our
products, the impact of securities class action litigation or other
litigation on our cash flow, results of operations and financial
position, our ability to take advantage of business opportunities
in the pharmaceutical industry, our ability to protect our
intellectual property, the potential of liability arising from
shareholder lawsuits and general changes in economic conditions.
Investors should consult our quarterly and annual filings with the
Canadian and U.S. securities commissions for additional information
on risks and uncertainties. Given these uncertainties and risk
factors, readers are cautioned not to place undue reliance on these
forward-looking statements. We disclaim any obligation to update
any such factors or to publicly announce any revisions to any of
the forward-looking statements contained herein to reflect future
results, events or developments, unless required to do so by a
governmental authority or applicable law.
Contact:
Leslie Auld
Chief Financial Officer
Aeterna Zentaris Inc.
IR@aezsinc.com
(843) 900-3211
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