In MO228 transmitted at 8:22e today, an error occurred in the title
of the first table in the Financial summary. "In thousands of
Canadian dollars" should have read "In thousands of US dollars".
Corrected copy follows: QUEBEC CITY, Aug. 11 /PRNewswire-FirstCall/
-- AEterna Zentaris Inc. (TSX: AEZ; NASDAQ: AEZS) today reported
financial and operating results for the second quarter ended June
30, 2006. "During the second quarter, we made great strides in
advancing our products through the pipeline at all stages as
exemplified by Cetrotide(R)'s marketing approval in Japan, our
successful meeting with the FDA leading to the upcoming filing of
an IND to move forward into Phase 3 clinical development of
cetrorelix in benign prostatic hyperplasia (BPH), as well as the
disclosure of positive clinical results in cancer with perifosine
and AN-152. Most recently, we disclosed positive Phase 2 results
for ozarelix in prostate cancer which will enable us to pursue
further clinical trials in this indication. Additionally, we signed
a license and collaboration agreement in Japan with Nippon Kayaku
for ozarelix in oncology," said Gilles Gagnon, AEterna Zentaris'
President and Chief Executive Officer. "We are very pleased with
these achievements which are an integral part of the Company's
strategy designed to build a strong and innovative pipeline focused
on oncology and endocrinology. We now look forward to continued
success as we aggressively advance our lead compounds." Key
Developments for the Quarter Ended June 30, 2006 - Market approval
for Cetrotide(R) (cetrorelix) in Japan for in vitro fertilization -
Cetrotide(R) (cetrorelix) will be manufactured and marketed in
Japan by AEterna Zentaris' partners Nippon Kayaku Co., Ltd. and
Shionogi & Co., Ltd. with an expected launch in Japan by
year-end; - Green light from FDA to file IND to move forward into
Phase 3 program with cetrorelix in BPH - The FDA reviewed the
safety and efficacy data from an extensive Phase 2 program with
cetrorelix for the treatment of benign prostatic hyperplasia (BPH).
AEterna Zentaris plans to submit an Investigational New Drug (IND)
application to the FDA by year-end for the initiation of a Phase 3
program for cetrorelix in BPH; - Positive interim Phase 2 data of
perifosine in advanced renal cell carcinoma - Interim results of a
multi-center Phase 2 trial by the Company's partner, Keryx
Biopharmaceuticals, showed a 43% partial response rate; - Positive
data from ongoing Phase 1 trial with AN-152 for gynaecological and
breast cancers presented at ASCO - Phase 1 results for AEterna
Zentaris' cytotoxic conjugate AN-152 in patients with
gynaecological and breast cancers showed that the compound has a
good safety profile and no dose-limiting toxicities reached so far
in the selected dose levels; - Positive in vivo data on ZEN-019
(oral LHRH antagonist peptidomimetic) presented at ENDO 2006 -
ZEN-019 demonstrated in vivo activity by suppressing plasma
testosterone levels. In vivo data showed that using ZEN-019 with a
single, oral administration (20 mg/kg) in rats, led to efficient
and revocable suppression of plasma testosterone levels for up to
12 hours. Furthermore, a repeat of the dosing of ZEN-019 increased
the suppression time without accumulation in the plasma. Financial
Results for the Quarter Ended June 30, 2006 Consolidated revenues
for the quarter ended June 30, 2006 totalled $83.4 million compared
to $60.1 million for the same period in 2005. Consolidated Research
and Development expenses, net of tax credits and grants increased
to $7.4 million for the quarter ended June 30, 2006 compared to
$6.1 million for the same period in 2005. Consolidated selling,
general and administrative expenses totalled $15.5 million for the
quarter ended June 30, 2006 compared to $10 million for the same
period in 2005. Consolidated net loss for the quarter ended June
30, 2006 was $1.6 million or $0.03 per basic and diluted share
compared to consolidated net earnings of $13.3 million or $0.28 per
diluted share for the same period in 2005. Without taking into
account a non-cash and non-recurring gain on dilution of
investments of $16.4 million recorded last year following the
Company's subsidiary Atrium Biotechnologies' Initital Public
Offering (IPO), AEterna Zentaris would have recorded a consolidated
net loss of $3.1 million or $0.07 per basic and diluted share in
the second quarter of 2005, compared to the $1.6 million or $0.03
per basic and diluted share consolidated net loss registered for
the second quarter 2006. This $1.5 million decrease is mainly
attributable to increased net earnings of $1.1 million from Atrium
Biotechnologies and to the reduction of the operating loss from
AEterna Zentaris' Biopharmaceutical segment. Cash, cash equivalents
and short-term investments reached $47 million for the quarter
ended June 30, 2006 compared to $52.7 million as of December 31,
2005. More than $27 million was dedicated to the Company's
Biopharmaceutical segment as of June 30, 2006. Dennis Turpin, Vice
President and Chief Financial Officer of AEterna Zentaris,
commented, "As we continue to successfully implement our strategy,
we are pleased to maintain a sound financial position, including
the ability to leverage our assets as we continue to execute our
plan and aggressively advance our pipeline. We are financially
poised to continue our investment in R&D, as well as support
our growing business." Developments Subsequent to Quarter End -
Positive Phase 2 results for ozarelix in prostate cancer - The
study achieved its primary end-point of defining a tolerable dosage
regimen of ozarelix that would ensure continuous suppression of
testosterone at castration level (< 0.5 ng/ml) for a three-month
test period. An important secondary efficacy end-point of the study
aimed at assessing tumour response as determined by a 50% or
greater reduction of serum PSA levels, compared to baseline, was
also achieved. - Licence and collaboration agreement with Nippon
Kayaku for ozarelix in oncology - AEterna Zentaris granted Nippon
Kayaku an exclusive license to develop and market ozarelix for all
potential oncological indications in Japan. Conference Call
Information Management will be hosting a conference call for the
investment community beginning at 11:00 a.m. Eastern Time today,
Friday, August 11, to discuss 2006 second quarter financial and
operating results, followed by a question and answer session. To
participate in the live conference call by telephone, please dial
800-257-3401. 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 a growing global biopharmaceutical company focused
on oncology and endocrine therapy with proven expertise in drug
discovery, development and commercialization. AEterna Zentaris also
owns 48.26% of the equity of Atrium Biotechnologies Inc. (TSX: ATB)
and 64.69% of its voting rights. Atrium is a developer,
manufacturer and marketer of science-based products for the
cosmetics, pharmaceutical, chemical and nutritional industries.
News releases and additional information are available 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 (In thousands of US dollars, except share and per share
data) Quarters ended Six months ended CONSOLIDATED RESULTS June 30,
June 30, Unaudited 2006 2005 2006 2005
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$ $ $ $ Revenues 83,390 60,144 167,867 122,009
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Operating expenses Cost of sales 52,619 38,564 109,815 75,727
Selling, general and administrative 15,517 10,014 29,084 19,949
R&D costs, net of tax credits and grants 7,380 6,099 14,281
12,545 Depreciation and amortization 2,478 2,011 4,859 3,829
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77,994 56,689 158,039 112,050
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Earnings from operations 5,396 3,456 9,828 9,959 Interest income
455 426 875 732 Interest expense (2,004) (2,668) (5,227) (4,826)
Foreign exchange gain (loss) (295) (155) (83) 53
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Earnings before the following items 3,552 1,059 5,393 5,918 Current
income taxes (2,395) (2,131) (4,391) (4,252) Future income taxes
630 (65) 1,819 (1,162) Gain (loss) on dilution of investments (81)
16,393 (135) 16,393 Non-controlling interest (3,268) (1,980)
(6,828) (3,503)
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Net earnings (loss) for the period (1,562) 13,276 (4,142) 13,394
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Net earnings (loss) per share Basic (0.03) 0.29 (0.08) 0.29
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Diluted (0.03) 0.28 (0.08) 0.28
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Weighted average number of shares Basic 52,682,969 46,139,814
52,098,592 46,139,814 Diluted 53,261,928 46,448,125 52,651,808
46,506,728 Issued and outstanding shares 53,160,970
Biopharmaceutical Segment - Selected Financial Information (In
thousands of US dollars) Quarters ended Six months ended Unaudited
June 30, June 30, 2006 2005 2006 2005
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$ $ $ $ Revenues Sales and royalties 5,228 5,381 11,803 12,279
License fees 4,155 4,779 6,328 11,628
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9,383 10,160 18,131 23,907
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Cost of sales 1,404 1,835 4,045 4,169 Selling and administrative
4,515 3,907 8,360 7,285 R&D expense, net of tax credits and
grants 7,262 6,081 14,066 12,431 Depreciation and amortization
1,653 1,708 3,216 3,258
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14,834 13,531 29,687 27,143
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Loss from operations (5,451) (3,371) (11,556) (3,236)
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Cash flows generated (used) by operating activities (3,518) 1,076
(7,042) 247
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CONSOLIDATED BALANCE SHEET As at As at June December 30, 31,
Unaudited 2006 2005
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$ $ Cash and short-term investments 47,041 52,705 Other current
assets 111,178 110,971 ------------------------- 158,219 163,676
Long-term assets 277,404 263,835 ------------------------- Total
assets 435,623 427,511 -------------------------
------------------------- Current liabilities 62,378 64,174
Long-term debt 100,706 135,743 Other long-term liabilities 54,423
53,532 Non-controlling interest 74,760 64,531
------------------------- 292,267 317,980 Shareholders' equity
143,356 109,531 ------------------------- Total liabilities and
shareholders' equity 435,623 427,511 -------------------------
------------------------- DATASOURCE: AETERNA ZENTARIS INC.
(FORMERLY/ANCIENNEMENT - LES LABORATOIRES AETERNA LABORATORIES
INC.) CONTACT: Media Relations: Paul Burroughs, (418) 652-8525 ext.
406, ; Investor Relations: Jenene Thomas, (418) 655-6420, (908)
996-3154,
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