AEterna Zentaris Reports 2004 Fourth Quarter and Full-Year Financial and Operating Results
February 28 2005 - 7:31AM
PR Newswire (US)
AEterna Zentaris Reports 2004 Fourth Quarter and Full-Year
Financial and Operating Results All amounts are in Canadian dollars
QUEBEC CITY, Feb. 28 /PRNewswire-FirstCall/ -- AEterna Zentaris
Inc. (TSX: AEZ; NASDAQ: AEZS) today reported financial and
operating results for the fourth quarter and full year ended
December 31, 2004. Consolidated revenues for the fourth quarter
2004 were $53.5 million, an increase of 9.4% compared with total
revenues of $48.9 million for the same period in 2003. Consolidated
R&D expenses net of tax credits amounted to $7.1 million in the
fourth quarter of 2004 compared with $12.3 million in the fourth
quarter of 2003. Consolidated operating income for the fourth
quarter 2004 was $0.9 million, compared with an operating loss of
$6.4 million for the fourth quarter 2003. The Company's
consolidated net loss was $2.5 million for the fourth quarter of
2004, or $0.06 per share, compared with a net loss of $9.3 million,
or $0.20 per share, for the comparable period in 2003. AEterna
Zentaris Consolidated Annual 2004 Results Consolidated revenues for
the 12-month period ended December 31, 2004 increased by 40.4% to
$233 million, compared with $166.4 million for the same period in
2003. Consolidated R&D expenses net of tax credits amounted to
$30.4 million in 2004, compared with $44.1 million in 2003. The
Company reported a 2004 consolidated operating income of $17.2
million, compared with an operating loss of $14.3 million for the
comparable period in 2003. This increase in operating income is
mainly due to non-recurrent milestone payments related to
cetrorelix Phase II positive results, the realignment of the
clinical development program initiated in December 2003, as well as
to Atrium's acquisition of Pure Encapsulations in March 2004,
combined with the achieved internal growth. Consolidated net loss
for 2004 was $5.8 million, or $0.13 per share, compared with a net
loss of $28.1 million, or $0.65 per share, in 2003. AEterna
Zentaris' financial performance for the year 2004 reflects
continued revenue growth from its development and marketing
partners related to the advancement of its extensive pharmaceutical
product pipeline and from sales of marketed compounds. It also
reflects growth generated by its 61.1%- owned subsidiary, Atrium
Biotechnologies, through its proprietary product portfolio and
accretive acquisitions. Atrium Biotechnologies Fourth Quarter 2004
Results During the fourth quarter of 2004, consolidated sales for
Atrium were $43.5 million, an increase of 16% compared with $37.5
million in sales for the comparable period in 2003. EBIT was $6.1
million during the quarter compared with $3.8 million for the same
period in 2003, representing a 61% increase. Net earnings increased
50% to $2.7 million compared with net earnings of $1.8 million for
the same period in 2003. These increases are mainly due to the
acquisition of Pure Encapsulations by Atrium, in March 2004, and
growth in Atrium's proprietary product portfolio. Atrium
Consolidated Annual 2004 Results For the 12 months ended December
31, 2004, Atrium's sales reached $177.3 million compared with
$120.3 million for 2003, representing a 47% increase. EBIT
increased 81% to $26.1 million in 2004 from $14.4 million in 2003.
Atrium recorded net earnings of $13.2 million in 2004 compared with
net earnings of $7.1 million in 2003, representing an increase of
86%. These increases came mainly from the acquisitions of Chimiray,
Interchemical, Siricie and Pure Encapsulations and from growth in
Atrium's proprietary product portfolio. "The year 2004 was marked
by sustained growth and development," said Gilles Gagnon, AEterna
Zentaris' President and Chief Executive Officer. "We moved our
products through the pipeline as illustrated by the successful
completion of our seven Phase II trial program with cetrorelix. In
2005, we expect to expand by advancing clinical development of
cetrorelix in collaboration with our partners Solvay and
Shionogi/Nippon Kayaku, by furthering the development of other
compounds in oncology and endocrinology, and by continuing our
in-licensing and acquisition program. Finally, our subsidiary,
Atrium, has again demonstrated its ability to yield excellent year-
over-year growth in all of its activity sectors and we also look
forward to see its continued growth in 2005," concluded Mr. Gagnon.
Dennis Turpin, Vice President and Chief Financial Officer of
AEterna Zentaris, added: "With the contribution of all of our
operating segments, we achieved our financial goal of becoming cash
flow positive, on a consolidated basis, in 2004. Our consolidated
cash and short-term position remains strong at $58 million as of
December 31, 2004. In 2005, while maintaining a solid financial
position, we expect our R&D investment to increase, reflecting
our commitment to expand and advance our clinical-stage pipeline,
in particular, the oncology proprietary products. The Company is
now well positioned to carry on its business plan." Appointment to
AEterna Zentaris Board Eric Dupont, Chairman of AEterna Zentaris,
is pleased to announce the appointment of Mr. Jurgen Ernst to
AEterna Zentaris' Board. Mr. Ernst, a seasoned executive, has
recently retired from his position of worldwide General Manager,
Pharmaceutical Sector of Solvay S.A. "We are pleased to welcome Mr.
Ernst who will bring to AEterna Zentaris more than 20 years of
pharmaceutical industry expertise mainly in the field of corporate
development and pharmaceutical product marketing," said Dr. Dupont.
Conference Call Information Management will be hosting a conference
call for the investment community beginning at 10:00 a.m. Eastern
Time today, Monday, February 28, to discuss 2004 fourth quarter and
full-year financial and operating results and answer questions. To
participate in the live conference call by telephone, please dial
514- 807-8791, 416-640-4127 from Canada or 800-814-4941 from
outside Canada. Individuals interested in listening to the
conference call on the Internet may do so by visiting
http://www.aeternazentaris.com/ . A replay will be available on the
Company's Web site for 30 days. About AEterna Zentaris Inc. AEterna
Zentaris Inc. is an oncology and endocrine therapy focused
biopharmaceutical company with proven expertise in drug discovery,
development and commercialization. The Company's broad 20 product
pipeline leverages five different therapeutic approaches, including
LHRH antagonists and signal transduction inhibitors. The lead LHRH
antagonist compound, cetrorelix, is currently marketed for in vitro
fertilization under the brand name Cetrotide(R), and has
successfully completed a broad Phase II program in endometriosis
and benign prostatic hyperplasia (BPH). The lead signal
transduction inhibitor compound, perifosine, is an orally-active
AKT inhibitor that is in several Phase II trials for multiple
cancers. AEterna Zentaris also owns 61.1% of Atrium Biotechnologies
Inc., a leading developer, manufacturer and marketer of value-added
products for the cosmetics, pharmaceutical, chemical and
nutritional industries. News releases and additional information
about AEterna Zentaris are available on its Web site at
http://www.aeternazentaris.com/ . Forward-Looking Statements This
press release contains forward-looking statements made pursuant to
the safe harbor provisions of the U.S. Securities Litigation Reform
Act of 1995. Forward-looking statements involve known and unknown
risks and uncertainties, which could cause the Company's actual
results to differ materially from those in the forward-looking
statements. Such risks and uncertainties include, among others, the
availability of funds and resources to pursue R&D projects, the
successful and timely completion of clinical studies, the ability
of the Company to take advantage of business opportunities in the
pharmaceutical industry, uncertainties related to the regulatory
process and general changes in economic conditions. Investors
should consult the Company's quarterly and annual filings with the
Canadian and U.S. securities commissions for additional information
on risks and uncertainties relating to the forward-looking
statements. Investors are cautioned not to rely on these
forward-looking statements. The Company does not undertake to
update these forward- looking statements. Attachment: Financial
summary > DATASOURCE: AETERNA ZENTARIS INC.
(FORMERLY/ANCIENNEMENT - LES LABORATOIRES AETERNA CONTACT: Media
Relations, Paul Burroughs, (418) 652-8525 ext. 406, ; Investor
Relations, Ginette Vallieres, (418) 652-8525 ext. 265, ; Europe,
Matthias Seeber, +49-6942602-3425, ; To request a free copy of this
organization's annual report, please go to http://www.newswire.ca/
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