AEterna Zentaris Reports 2005 Second Quarter Financial and Operating Results
August 03 2005 - 8:31AM
PR Newswire (US)
All amounts are in Canadian dollars QUEBEC CITY, Aug. 3
/PRNewswire-FirstCall/ -- AEterna Zentaris Inc. (TSX: AEZ; NASDAQ:
AEZS) today reported financial and operating results for the second
quarter ended June 30, 2005. Consolidated revenues for the second
quarter 2005 were $74.8 million compared to $65.8 million for the
same period in 2004, an increase of 13.7%. Consolidated R&D
expenses net of tax credits amounted to $7.6 million in the second
quarter of 2005 compared to $8.7 million in the second quarter of
2004, a decrease of 12.6%. Consolidated earnings from operations
for the second quarter 2005 were $4.3 million, compared to $9.2
million for the second quarter 2004, a decrease of 53.2%. On the
other hand, the Company's consolidated net earnings were $16.4
million, or $0.36 per basic share and $0.35 per diluted share for
the second quarter of 2005 compared to $1.3 million, or $0.03 per
basic and diluted share for the comparable period in 2004. The $9
million increase in consolidated revenues during the second quarter
2005 is attributable to an increase of $15.1 million revenues from
our subsidiary Atrium combined with a decrease of $6.1 million
revenues from our biopharmaceutical segment. This decrease in the
biopharmaceutical revenues is all attributable to a $6.5 million
non-recurring milestone payment gained from Solvay Pharmaceuticals
in the 2004 second quarter. Net earnings for the second quarter of
2005 include a non-cash and non-recurring gain on dilution of $20.3
million recorded following the decrease of AEterna Zentaris'
interest in its subsidiary Atrium from 61.1% to 50.1% mainly as a
result of Atrium's April 6, 2005 IPO. As of June 30, 2005, the
Company had consolidated cash and short-term investments of $64
million, including $46.7 million dedicated to the biopharmaceutical
segment. The Company generated consolidated positive cash flow from
operating activities of $4.3 million in the second quarter 2005.
The burn rate for the biopharmaceutical segment in the second
quarter 2005 was $3 million as expected. During the second quarter
2005, the Company continued to advance the product pipeline with
the initiation of three new clinical trials in Europe and the
United States with ozarelix, the new name for D-63153. Ozarelix is
a fourth generation LHRH (Luteinizing Hormone Releasing Hormone)
antagonist product administered as a depot formulation. These
trials include one Phase II in Europe in hormone-sensitive prostate
cancer and another Phase II in Europe in benign prostate
hyperplasia, together with a Phase I/II in the United States in
hormone-sensitive prostate cancer that was initiated in
collaboration with our North American partner Spectrum
Pharmaceuticals (NASDAQ:SPPI). Ozarelix (D-63153), which allows for
chronic intermittent treatment, could improve clinical symptoms of
these diseases while overcoming some of the limitations associated
with currently marketed therapies. Furthermore, our lead signal
transduction inhibitor in cancer, perifosine, yielded positive
Phase II results in 25 patients suffering from hormone-sensitive
prostate cancer. Investigators concluded that perifosine is
feasible, well-tolerated and can reduce PSA (Prostatic Specific
Antigen) in some patients. Following those results, Phase II trials
with perifosine in combination with androgen ablation and
chemotherapy are expected to be initiated by our North American
partner Keryx Biopharmaceuticals (NASDAQ:KERX) later this year. In
the field of growth hormone modulators, EP-1572 also yielded
positive Phase I results. The study provided clear evidence that
this compound is able to induce a significant rise in growth
hormone levels after oral administration in healthy volunteers.
Potential applications include treatment for growth retardation in
children and cachexia associated with chronic disease such as AIDS
and cancer. EP-1572, the orally-administered specific growth
hormone secretagogue in development, presents a major competitive
advantage in terms of ease and convenience of delivery over current
treatments which are only available through injections. Other Phase
I clinical trials are currently ongoing to further assess the
potential of EP-1572 in growth hormone related disorders. "At the
clinical level, the last quarter was marked by the progress of
ozarelix, the new name for D-63153, in prostate cancer and in
benign prostate hyperplasia," said Gilles Gagnon, AEterna Zentaris'
President and Chief Executive Officer. "Ozarelix, which we intend
to aggressively pursue the development over the next year, is now
considered as another lead product in our promising LHRH antagonist
therapeutic approach, along with cetrorelix which is currently in
late stage clinical trials in benign prostate hyperplasia and in
endometriosis. As for perifosine, our lead product in the signal
transduction inhibitor therapeutic approach, it pursued its
progress into further Phase II trials. In addition, we continued to
advance other clinical and preclinical products through our
pipeline according to our strategic drug development program
focused on oncology and endocrinology. In doing so, we feel
confident that we are well on our way of developing a deep pipeline
of innovative products for the benefit of patients coping with
serious diseases while building value for our shareholders,"
concluded Mr. Gagnon. Dennis Turpin, Vice President and Chief
Financial Officer of AEterna Zentaris, added, "Our financial
position continues to be strong. On a consolidated basis, we
remained cash flow positive and our cash and short-term position
reached $64 million as of June 30, 2005. Considering our strong
financial position, we will continue to make high-level R&D
investments to maintain and grow a broad pipeline of drug
development programs with both near-term and long-term potential.
AEterna Zentaris Six-Month Consolidated Financial Results
Consolidated revenues for the first half of 2005 increased 21.2% to
$150.7 million, compared to $124.3 million for the first half of
2004. The Company reported year-to-date 2005 consolidated earnings
from operations of $12.3 million, compared to $10.8 million for the
same period a year earlier. Consolidated net earnings for the first
six months of 2005 were $16.5 million, or $0.36 per basic and
diluted share, compared to a consolidated net loss of $1.2 million,
or $0.03 per basic and diluted share, for the first six months of
2004. Conference Call Information Management will be hosting a
conference call for the investment community beginning at 10:00
a.m. Eastern Time today, Wednesday, August 3, to discuss 2005
second quarter 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 marketing. The Company's broad 20 product pipeline
leverages six 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). Cetrorelix is also
in late-stage clinical development for endometriosis and benign
prostatic hyperplasia (BPH). The lead signal transduction inhibitor
compound, perifosine, is a novel, first-in-class, oral anticancer
agent that modulates several key signal transduction pathways,
including AKT, MAPK, and JNK that have been shown to be critical
for the survival of cancer cells. Perifosine has demonstrated
single agent anti-tumor activity in Phase I and Phase II studies
and is currently being studied as a single agent and in combination
with several forms of anti-cancer treatments for various forms of
cancer, including non-small cell lung cancer and breast cancer.
AEterna Zentaris also owns 50.1% of Atrium Biotechnologies Inc.
(TSX: ATB.sv), a leading developer, manufacturer and marketer of
value-added 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 > 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 69 42602 3425, To request a free copy of this
organization's annual report, please go to http://www.newswire.ca/
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