AEterna Zentaris Reports Third Quarter 2004 Financial and Operating Results
November 04 2004 - 7:32AM
PR Newswire (US)
AEterna Zentaris Reports Third Quarter 2004 Financial and Operating
Results All amounts are in Canadian dollars QUEBEC CITY, Nov. 4
/PRNewswire-FirstCall/ -- AEterna Zentaris Inc. (TSX: AEZ; NASDAQ:
AEZS) today reported financial and operating results for the third
quarter ended September 30, 2004. Consolidated revenues for the
third quarter 2004 were $55.4 million, an increase of 46.6%
compared with total revenues of $37.8 million for the same period
in 2003. Consolidated R&D expenses net of tax credits and
grants amounted to $6.6 million in the third quarter of 2004
compared with $9.8 million in the third quarter of 2003.
Consolidated operating income for the third quarter 2004 was $5.5
million, compared with an operating loss of $5.4 million for the
third quarter 2003. The Company's consolidated net loss was $2
million for the third quarter of 2004, or $0.04 per share, compared
with a net loss of $9.3 million, or $0.20 per share, for the
comparable period in 2003. AEterna Zentaris' financial performance
for the third quarter of 2004 reflects continuing growth from its
subsidiary Atrium, as well as milestone and upfront payments
received from its development and commercialization partners
related to the advancement of its extensive pharmaceutical product
pipeline. Furthermore, the Company benefits from a revenue flow
from Cetrotide(R) (cetrorelix), a LHRH antagonist, which is
marketed by Serono (NYSE:SRA) for in vitro fertilization. "Our
solid results for this quarter have enabled us to reach both our
financial and strategic goals," said Gilles Gagnon, AEterna
Zentaris President and Chief Executive Officer. "In the
biopharmaceutical sector, we continued to move products through the
pipeline as we successfully completed our extensive seven Phase
II-trial program of cetrorelix in urology and gynaecology. We are
currently planning, with our partner Solvay (Euronext Bruxelles:
SOLB), the last phase of the development for cetrorelix to
potentially support a marketing application for the drug. In
collaboration with our North American partner, Keryx
Biopharmaceuticals (NASDAQ:KERX), we also disclosed encouraging
results from a Phase II trial on perifosine as a monotherapy for
patients suffering from soft-tissue sarcoma. We now look forward to
continue the development of perifosine as a single agent and in
combination with chemotherapy and/or radiotherapy as a treatment
for different forms of cancer. Finally, our subsidiary, Atrium, has
once again delivered an excellent year- over-year growth and
performance across all parameters. We believe that we are well
positioned to reach both our near and long-term goals," concluded
Mr. Gagnon. Dennis Turpin, AEterna Zentaris Vice President and CFO,
added, "With our cash and short-term position remaining strong at
$63 million, the Company is well positioned to carry out its
business plan." Atrium Biotechnologies Third Quarter 2004 Results
During the third quarter of 2004, sales for Atrium, AEterna
Zentaris' 60% owned subsidiary, were $41 million, an increase of
37% compared with $29.9 million in sales for the comparable period
in 2003. Operating income was $6.5 million during the quarter,
compared with $3.9 million for the same period in 2003,
representing a 66.7% increase. "We achieved our expected growth in
this last quarter compared to the same period last year due to
solid organic growth combined with the strong contribution from
Pure Encapsulations, our most recent acquisition in the United
States. Based on these results, we look forward to another strong
quarter in 2004," said Luc Dupont, CEO of Atrium Biotechnologies
Inc. Third Quarter 2004 Highlights - Positive Phase II results for
cetrorelix our LHRH antagonist in BPH - Data from a placebo
controlled study involving 250 patients demonstrated a
dose-dependent, durable, and statistically significant (p less than
0.001) improvement of clinical symptoms characteristic of Benign
Prostatic Hyperplasia (BPH), as well as an excellent safety and
tolerability profile. This study successfully completed the
extensive seven Phase II-trial program in urology and gynaecology
sponsored by our partner Solvay Pharmaceuticals. - Encouraging data
from perifosine our first-in-class oral AKT inhibitor in a Phase II
single agent soft-tissue sarcoma study. - License and collaboration
agreement with Spectrum Pharmaceuticals on fourth generation LHRH
antagonist D-63153, with potential indications in cancer, as well
as benign, proliferative disorders. - Atrium revenues of $41
million, an increase of 37%, operating income of $6.5 million, an
increase of 66.7% and $2.8 million in net earnings, an increase of
38.4%. AEterna Zentaris Nine-Month Consolidated Financial Results
Consolidated revenues for the first nine months of 2004 increased
52.9% to $179.7 million, compared with $117.5 million for the first
nine months of 2003. The Company reported a year-to-date 2004
consolidated operating income of $16.3 million, compared with an
operating loss of $7.8 million for the comparable prior-year
period. Consolidated net loss for the first nine months of 2004 was
$3.2 million, or $0.07 per share, compared with a net loss of $18.9
million, or $0.43 per share, for the first nine months of 2003.
Atrium Nine-Month Financial Results For the nine-month period ended
September 30, 2004, Atrium sales were $133.8 million compared with
$82.9 million in 2003, representing a 61.4% increase. The operating
income increased 88.7% to $20 million, compared with $10.6 million
for the same period in 2003. Net income increased 100% to $10.4
million, compared with $5.2 million for the same period in 2003.
Outlook 2004 - early 2005 Some of the Company's specific goals for
the remainder of 2004 and early 2005 include the following: -
Initiate additional Phase II trials with perifosine in combination
with chemo/radiotherapy - Advance clinical development of
cetrorelix with Solvay - Advance one preclinical compound into
Phase I in oncology Conference Call Information Management will be
hosting a conference call for the investment community beginning at
10:00 a.m. Eastern Time today, Thursday, November 4, to discuss
third quarter financial and operating results and to 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 via 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 biopharmaceutical company focused on oncology
and endocrine therapy. Its extensive portfolio, from drug discovery
to marketed products, includes perifosine, an orally-active AKT
inhibitor in several Phase II trials for multiple cancers, and
cetrorelix, an LHRH antagonist already marketed for in vitro
fertilization under the brand name Cetrotide(R), and also in
advanced clinical development for the treatment of uterine myoma,
endometriosis and benign prostatic hyperplasia (BPH). AEterna
Zentaris also owns 60% of Atrium Biotechnologies Inc., which
develops, manufactures and markets active ingredients, specialty
fine chemicals, cosmetic and nutritional products for the
cosmetics, chemical, pharmaceutical and nutritional industries.
News releases and additional information about AEterna Zentaris are
available on its new Web site 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.
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Relations: Jacques Raymond, (418) 652-8525, ext. 360, ; U.S.
Investor Relations: Lippert/Heilshorn & Associates, Kim
Golodetz, (212) 838-3777, ; Europe: Matthias Seeber, +49 69 42602
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