All amounts are in U.S. dollars QUEBEC CITY, May 2
/PRNewswire-FirstCall/ -- AEterna Zentaris Inc. (TSX: AEZ; NASDAQ:
AEZS), a global biopharmaceutical company focused on endocrine
therapy and oncology, today reported financial and operating
results for the first quarter ended March 31, 2007. David J. Mazzo,
PhD, AEterna Zentaris' President and Chief Executive Officer said,
"2007 marks the beginning of a new era for AEterna Zentaris. We
have emerged as a pure play biopharmaceutical company with an
enviable product development pipeline and a sound financial
position. I am looking forward to leading the Company to even
greater success in the future based on a strategy of realizing the
full potential of our flagship product candidate in BPH,
cetrorelix, as well as the rest of our pipeline." KEY DEVELOPMENTS
FOR THE FIRST QUARTER ENDED MARCH 31, 2007 Corporate Evolution
------------------- Appointment of David J. Mazzo, PhD, as new
President and Chief Executive Officer (CEO) - The Company announced
the appointment of David J. Mazzo, PhD, as President and CEO,
effective April 9, 2007. Completion of spin-off of subsidiary
Atrium Biotechnologies - On January 2, 2007, AEterna Zentaris
completed the special distribution in kind of its remaining
interest in Atrium Biotechnologies, representing 11,052,996
subordinate voting shares previously held by the Company, by way of
return of capital to its shareholders, representing nearly $138
million. Advancing the Pipeline ---------------------- Initiation
of first efficacy study of Phase 3 program with cetrorelix in
benign prostatic hyperplasia (BPH) - The Company initiated a
600-patient efficacy study conducted in 40 centers in the U.S. and
Canada, under the supervision of lead investigator, Herbert Lepor,
MD, Professor and Martin Spatz Chairman of Urology, at the New York
University School of Medicine, New York. This study is part of an
extensive, 1,500-patient Phase 3 program. Positive Phase 2a results
in Japan with cetrorelix in BPH - The Company, along with its
Japanese partner, Shionogi, announced positive results for a Phase
2a trial initiated in 2005 in Japan. The results showed the good
safety and tolerability profile of cetrorelix in Japanese patients
at all dosage regimens with testosterone concentration reduction
maintained above castration level and no suppression of PSA levels
at any dosage regimen. Data generated with Japanese patients showed
that the bioavailability of cetrorelix was similar to what was
observed in non-Japanese patients. Initiation of Phase 1 trial with
ZEN-012 for solid tumors and lymphoma - The Company initiated a
50-patient Phase 1 trial with ZEN-012 for solid tumors and
lymphoma. The trial is being conducted in the U.S. under the
supervision of lead investigator, Daniel D. Von Hoff, MD, Senior
Investigator at the Translational Genomics Research Institute in
Phoenix, Arizona. FINANCIAL AND OPERATING RESULTS FOR THE FIRST
QUARTER 2007 Consolidated revenues for the first quarter 2007 were
$10 million, an increase of 14.9% compared to consolidated revenues
of $8.7 million for the same period in 2006. The increase is mainly
attributable to additional new sales of Cetrotide(R), following the
September 2006 launch in Japan. Consolidated R&D expenses net
of tax credits amounted to $8.2 million for the first quarter of
2007 compared to $6.8 million for the same period in 2006. The
increase in R&D expense of $1.4 million was related to the
additional expenses incurred for the Phase 3 program with
cetrorelix in BPH, as well as for further advancement of targeted,
earlier-stage development programs. The Company's consolidated net
loss from continuing operations was $5.1 million for the first
quarter of 2007, or $0.10 per share, compared to a consolidated net
loss from continuing operations of $5.9 million or $0.12 per share
for the same period in 2006. This decrease in net loss from
continuing operations of $0.8 million is mainly attributable to a
combination of increased revenues and income tax recovery, as well
as the elimination of interest expenses, partly offset by increased
R&D and SG&A expenses. The Company's consolidated net loss
was $5.1 million for the first quarter of 2007, or $0.10 per share,
compared to a consolidated net loss of $2.6 million or $0.05 per
share for the same period in 2006. The increase of the net loss for
the first quarter of 2007 is directly attributable to nearly $3.3
million of net earnings from discontinued operations related to the
Company's former subsidiary, Atrium Biotechnologies Inc., recorded
in 2006, partly offset by reduced net loss from continuing
operations. The consolidated cash and short-term investments were
$55 million as of March 31, 2007. CONFERENCE CALL Management will
be hosting a conference call for the investment community beginning
at 4:00 p.m. Eastern Time today, Wednesday, May 2, 2007 to discuss
first quarter 2007 financial and operating results. To participate
in the live conference call by telephone, please dial 514-807-8791,
416-644-3428 or 800-591-7539. 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 global biopharmaceutical company focused on
endocrine therapy and oncology with proven expertise in drug
discovery, development and commercialization. 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. Statements that are not historical facts, including
statements preceded by, followed by, or that include the words
"believes", "anticipates", "intends", "plans", "expects",
"estimates", "will," "may", "should", "approximately", and the
negative or other variations of those terms or comparable
terminology, are forward-looking statements. Such statements
reflect management's current views, intentions, strategies and
plans and are based on certain assumptions. 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 ability of AEterna
Zentaris to implement its business strategies, the availability of
funds and resources to pursue R&D projects, the successful and
timely completion of clinical studies, the ability of AEterna
Zentaris 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) Three months ended CONSOLIDATED RESULTS March 31, Unaudited
2007 2006
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$ $ Revenues Sales and royalties 8,038 6,576 License fees 1,912
2,172
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9,950 8,748
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Operating expenses Cost of sales 3,463 2,642 R&D costs, net of
tax credits and grants 8,184 6,804 Selling, general and
administrative 5,096 3,845 Depreciation and amortization 1,464
1,563
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18,207 14,854
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Loss from operations (8,257) (6,106) Interest income 573 228
Interest expense (1) (1,243) Foreign exchange gain 40 41
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Loss before income taxes (7,645) (7,080) Income tax recovery 2,535
1,179
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Net loss from continuing operations (5,110) (5,901) Net earnings
from discontinued operations - 3,321
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Net loss for the period (5,110) (2,580)
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Net loss per share from continuing operations Basic and diluted
(0.10) (0.12)
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Net loss per share Basic and diluted (0.10) (0.05)
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Weighted average number of shares Basic and diluted 53,179,470
50,327,227 Issued and outstanding shares 53,179,470 53,133,681 (In
thousands of US dollars) CONSOLIDATED BALANCE SHEET March 31,
December 31, Unaudited 2007 2006
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$ $ Cash and short-term investments 55,460 61,019 Other current
assets 20,406 40,704 ---------------------------- 75,866 101,723
Long-term assets 63,466 121,768 ---------------------------- Total
assets 139,332 223,491 ----------------------------
---------------------------- Current liabilities 19,169 16,310
Long-term debt 596 704 Other long-term liabilities 18,531 27,598
---------------------------- 38,296 44,612 Shareholders' equity
101,036 178,879 ---------------------------- Total liabilities and
shareholders' equity 139,332 223,491 ----------------------------
---------------------------- DATASOURCE: AETERNA ZENTARIS INC.
CONTACT: Media Relations, Paul Burroughs, (418) 652-8525, ext. 406,
; Investor Relations, Jenene Thomas, (418) 655-6420,
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