All amounts are in U.S. dollars QUEBEC CITY, Aug. 14
/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 second quarter ended June 30, 2007. "I am pleased
with our progress during the second quarter. Most importantly, we
commenced patient dosing for the first trial of the Phase 3 program
for cetrorelix in BPH. With recruitment underway, our other
clinical programs progressing very well and the addition of key
executives to our team, we are able to focus on a rigorous
strategic review of our product portfolio and business
opportunities, and I am confident we will have a coherent plan,
optimized for success to communicate to you in September," said
David J. Mazzo, Ph.D., AEterna Zentaris' President and Chief
Executive Officer. KEY DEVELOPMENTS FOR THE SECOND QUARTER ENDED
JUNE 30, 2007 CORPORATE: - The Company bolstered its executive
management team with the appointments of Ellen McDonald, MBA,
Senior Vice President, Business Operations and Chief Business
Officer, as well as Nicholas J. Pelliccione, Ph.D., Senior Vice
President, Regulatory Affairs and Quality Assurance. ADVANCING THE
PIPELINE: Cetrorelix - Patient dosing commenced with cetrorelix,
the Company's lead luteinizing hormone-releasing hormone (LHRH)
antagonist compound, in the first study of its extensive Phase 3
program in benign prostatic hyperplasia (BPH). - AEterna Zentaris
regained exclusive worldwide (ex-Japan) rights for cetrorelix from
Solvay Pharmaceuticals (Euronext: SOLB) in all indications,
including endometriosis, without any financial compensation payable
to Solvay. Ozarelix - Positive, detailed Phase 2 BPH results for
ozarelix, a fourth- generation LHRH/GnRH antagonist, were presented
at the American Urological Association (AUA) Annual Meeting. -
Enrollment was completed for the Phase 2b trial in BPH being
conducted in the U.S. and Canada by Spectrum Pharmaceuticals
(NASDAQ:SPPI). Perifosine - Positive Phase 1 and Phase 2 results
for perifosine, an oral anti- cancer signal transduction inhibitor
compound for the treatment of patients with advanced sarcoma were
presented at the American Society of Clinical Oncology's (ASCO)
Annual Meeting. AEZS-108 - Positive, detailed Phase 1 results for
AEZS-108, a targeted cytotoxic LHRH analog, were reported in female
patients with cancers expressing LHRH receptors at the ASCO Annual
Meeting. RESULTS FOR THE SECOND QUARTER ENDED JUNE 30, 2007
Consolidated cash and short-term investments were $51.5 million as
of June 30, 2007 compared to $61 million as of December 31, 2006.
Consolidated revenues for the second quarter ended June 30, 2007
were $12.2 million, an increase of 29.8% compared to revenues of
$9.4 million for the same period in 2006. The increase in
consolidated revenues is mainly attributed to increased sales of
both Cetrotide(R) and Impavido(R). Consolidated R&D costs, net
of tax credits and grants (R&D), were $8 million for the
quarter ended June 30, 2007 compared to $7.3 million for the same
period in 2006. The increase in R&D expense was related to the
additional expenses incurred with respect to the Phase 3 program
with cetrorelix in BPH, as well as further advancement of targeted,
earlier clinical-stage development programs. Consolidated selling,
general and administrative (SG&A) expenses were $4.7 million
for the quarter ended June 30, 2007 compared to $4.5 million for
the same period in 2006. Consolidated loss from operations
decreased to $5.1 million for the quarter ended June 30, 2007
compared to $5.5 million for the same period in 2006. The decrease
in loss from operations is attributable to increased sales of
Cetrotide(R) and Impavido(R) partly offset by additional expenses
in R&D. Net loss from continuing operations for the quarter
ended June 30, 2007 was $4.8 million compared to $4.4 million for
the same period in 2006. This increase is attributable to a
combination of higher R&D expenses and to the foreign exchange
loss recorded during the quarter ended June 30, 2007, partly offset
by increased revenues. Net earnings from discontinued operations
for the second quarter ended June 30, 2006 were nearly $2.9 million
and were completely attributable to the Company's former subsidiary
Atrium Innovations which operations were excluded from
consolidation effective on October 18, 2006. Consolidated net loss
for the quarter ended June 30, 2007 was $4.8 million or $0.09 per
basic and diluted share, compared to $1.6 million or $0.03 per
basic and diluted share for the same period in 2006. The net loss
increase for the quarter is attributable to the completion of the
distribution of AEterna Zentaris remaining interest in Atrium to
the Company's shareholders on January 2, 2007. CONFERENCE CALL
Management will be hosting a conference call for the investment
community beginning at 10:30 a.m. Eastern Time today, Tuesday,
August 14, to discuss results for the quarter ended June 30, 2007.
To participate in the live conference call by telephone, please
dial 416-644-3420, 514-807-8791 or 800-731-5774. 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 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. 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) Three months ended Six months ended CONSOLIDATED RESULTS June
30, June 30, Unaudited 2007 2006 2007 2006
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$ $ $ $ Revenues Sales and royalties 8,376 5,227 16,414 11,803
License fees 3,852 4,156 5,764 6,328
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12,228 9,383 22,178 18,131
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Operating expenses Cost of sales 3,196 1,404 6,659 4,046 R&D
costs, net of tax credits and grants 8,015 7,262 16,199 14,066
Selling, general and administrative 4,672 4,515 9,768 8,360
Depreciation and amortization 1,491 1,653 2,955 3,216
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17,374 14,834 35,581 29,688
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Loss from operations (5,146) (5,451) (13,403) (11,557) Interest
income 305 282 878 510 Interest expense (53) (19) (54) (1,262)
Foreign exchange loss (693) (126) (653) (85)
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Loss before income taxes (5,587) (5,314) (13,232) (12,394) Income
tax recovery 741 884 3,276 2,063
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Net loss from continuing operations (4,846) (4,430) (9,956)
(10,331) Net earnings from discontinued operations - 2,868 - 6,189
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Net loss for the period (4,846) (1,562) (9,956) (4,142)
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Net loss per share from continuing operations Basic and diluted
(0.09) (0.08) (0.19) (0.20)
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Net loss per share Basic and diluted (0.09) (0.03) (0.19) (0.08)
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Weighted average number of shares Basic and diluted 53,179,470
52,682,969 53,179,470 52,098,582 Issued and outstanding shares
53,179,470 53,160,970 (In thousands of US dollars) CONSOLIDATED
BALANCE SHEETS June 30, December 31, Unaudited 2007 2006
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$ $ Cash and short-term investments 51,500 61,019 Other current
assets 20,186 40,704 ---------------------------- 71,686 101,723
Long-term assets 63,809 121,768 ---------------------------- Total
assets 135,495 223,491 ----------------------------
---------------------------- Current liabilities 17,642 16,310
Deferred revenues 4,781 8,468 Long-term debt - 704 Other long-term
liabilities 10,608 19,130 ---------------------------- 33,031
44,612 Shareholders' equity 102,464 178,879
---------------------------- Total liabilities and shareholders'
equity 135,495 223,491 ----------------------------
---------------------------- DATASOURCE: AETERNA ZENTARIS INC.
CONTACT: Jenene Thomas, Senior Director, Investor Relations &
Corporate Communications, (908) 938-1475, ; Paul Burroughs, Media
Relations, (418) 652-8525 ext. 406,
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