AEterna Zentaris Reports 2006 First Quarter Financial and Operating Results
May 03 2006 - 8:01AM
PR Newswire (US)
Company reiterates commitment to advancing pipeline QUEBEC CITY,
Canada, May 3 /PRNewswire-FirstCall/ -- AEterna Zentaris Inc. (TSX:
AEZ; NASDAQ: AEZS) today reported financial and operating results
for the first quarter ended March 31, 2006. Consolidated revenues
for the first quarter 2006 were $84.5 million, an increase of 36.5%
compared to total revenues of $61.9 million for the same period in
2005. Consolidated R&D expenses net of tax credits amounted to
$6.9 million for the first quarter of 2006 compared to $6.4 million
for the same period in 2005. The Company's consolidated net loss
was $2.6 million for the first quarter of 2006, or $0.05 per share,
compared to net earnings of $0.1 million for the same period in
2005. This $2.7 million variation is mainly attributable to a
decrease in license revenues in the Company's Biopharmaceutical
segment, increased R&D investments and interest expense, partly
offset by its 48.29%-owned subsidiary Atrium Biotechnologies' net
earnings. The consolidated cash and short-term investments were
$46.9 million on March 31, 2006. The Company highlighted first
quarter 2006 advancements with respect to its product development
pipeline, Corporate Affairs and recent events: Product Development
Pipeline Advancements - Initiation of Phase 2, Multi-Center study
of perifosine for the treatment of refractory multiple myeloma; -
Initiation of Phase 2, Multi-Center study of perifosine for the
treatment of refractory leukemia; - Disclosure of preclinical
results on various drug candidates at the American Association for
Cancer Research (AACR) Meeting in Washington, including tubulin
inhibitors, signal transduction inhibitors and cytotoxic
conjugates; and - Regained the exclusive worldwide (ex-Japan)
rights for cetrorelix in benign prostate hyperplasia. Corporate
Affairs - The Solidarity Fund QFL and SGF Sante Inc. converted
their term loans into common shares; - Former Abbott Vice
President, Gerald J. Martin appointed to AEterna Zentaris Board.
Recent Events - Gained market approval for Cetrotide(R)
(cetrorelix) in Japan for in vitro fertilization. Gilles Gagnon,
AEterna Zentaris' President and Chief Executive Officer said, "We
progressed on multiple fronts throughout the quarter as we
strengthened our financial position and continued to advance our
development pipeline. The preclinical results on different
anti-cancer agents presented at the American Association for
Clinical Research (AACR) meeting in Washington, are indicative of
the depth of our pipeline and its potential to yield novel products
to treat cancer. Furthermore, we were very pleased to have regained
the worldwide, ex-Japan rights for cetrorelix in BPH, and are
presently in the process of designing a protocol to conduct a
late-stage study with cetrorelix in BPH in the United States, upon
discussions with the United States Food and Drug Administration. We
believe we will initiate our late-stage development program this
year, in line with our strategy. Finally, we continue to see
progress with our lead signal transduction inhibitor, perifosine as
two Phase 2 trials were initiated this quarter with our partner,
Keryx, in leukemia and multiple myeloma. We are committed to
driving our strategy forward as we aggressively move our promising
product candidates through our pipeline." Dennis Turpin, Vice
President and Chief Financial Officer of AEterna Zentaris,
commented: "We were very pleased with SGF and FTQ's decision to
convert the entirety of their convertible term loans into AEterna
Zentaris common shares. This conversion, along with Atrium's
continued growth, further strengthened our balance sheet in the
first quarter. Furthermore, we will continue to see an increase in
our R&D investment in 2006, clearly reflecting our commitment
to our focused strategy to advance and expand our clinical- stage
pipeline, in particular, the oncology proprietary products while
maintaining a solid financial position." Appointment to Company
Management Mario Paradis, CA, has been promoted from Senior
Director, Finance and Corporate Secretary to Vice President,
Finance, Administration and Corporate Secretary. Former Senior
Manager at PricewaterhouseCoopers, within the Audit and Assurance
Group, Mr. Paradis joined AEterna Zentaris in 1999. "Mario Paradis
has been a great asset for our Company over the last seven years,"
said Gilles Gagnon, President and Chief Executive Officer at
AEterna Zentaris. "In addition to his current financial and legal
functions, he will be in charge of overall administrative affairs
of the Company and its subsidiaries." Conference Call Information
Management will be hosting a conference call for the investment
community beginning at 3:30 p.m. Eastern Time today, Wednesday, May
3, to discuss 2006 first quarter financial and operating results,
followed by a question and answer session. To participate in the
live conference call by telephone, please dial 514-807-8791,
416-644-3424 from Canada or 800-796-7558 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 a growing
global biopharmaceutical company focused on oncology and endocrine
therapy with proven expertise in drug discovery, development and
commercialization. AEterna Zentaris also owns 48.29% of the equity
of Atrium Biotechnologies Inc. (TSX: ATB.sv) and 64.7% 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 > DATASOURCE: AETERNA ZENTARIS INC.
(FORMERLY/ANCIENNEMENT - LES LABORATOIRES AETERNA CONTACT: Media
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Relations: Jenene Thomas, (418) 655-6420 or (908) 996-3154, ; To
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