AEterna Zentaris Reports First Quarter 2008 Financial and Operating Results
May 07 2008 - 7:30AM
PR Newswire (US)
All amounts are in U.S. dollars QUEBEC CITY, May 7
/PRNewswire-FirstCall/ -- AEterna Zentaris Inc. (NASDAQ:
AEZSNASDAQ:TSX:NASDAQ:AEZ), a global biopharmaceutical company
focused on endocrinology and oncology, today reported financial and
operating results for the first quarter ended March 31, 2008. First
Quarter 2008 Highlights - Cetrorelix: first patients treated in
second efficacy trial of the Phase 3 program in benign prostatic
hyperplasia (BPH); - AEZS-108: first patients treated in Phase 2
trial in ovarian and endometrial cancers; - Miltefosine
(Impavido(R)): rights sold to Paladin Labs Inc. (TSX:PLB) for
approximately $8.9 million. Subsequent to First Quarter End -
Cetrorelix: recruitment of 600 patients completed for first
efficacy trial of the Phase 3 program in BPH; - Juergen Ernst,
AEterna Zentaris Chairman, appointed Interim President and CEO,
replacing David J. Mazzo. Departure of Ellen McDonald, Senior Vice
President, Business Operations and Chief Business Officer; - Board
member Jose P. Dorais appointed to the Corporate Governance,
Nominating and Human Resources Committee, replacing Mr. Juergen
Ernst, the Company's Chairman of the Board and Interim President
and CEO, who had previously stepped down from the committee in
connection with his appointment as Interim President and CEO.
Juergen Ernst, Chairman, Interim President and CEO at AEterna
Zentaris commented, "During the quarter, we continued to move
forward with our Phase 3 program in BPH with our lead compound
cetrorelix, as we completed patient recruitment for our first
efficacy trial in North America and started patient dosing in our
second similar efficacy trial in Europe. We also achieved an
important milestone with our lead oncology compound AEZS-108, as we
started patient dosing for our Phase 2 trial in endometrial and
ovarian cancer. Subsequent to quarter end, we had to make important
changes to our management team in order not to stray from our
corporate strategy which is based on the following priorities:
concentrate on the advancement of our lead value-drivers cetrorelix
in BPH and AEZS-108 in oncology, pursue strategic partnership
opportunities for cetrorelix and other compounds from our rich
pipeline, continue monetizing our non-core assets to provide
additional sources of non-dilutive funding and apply strict control
of our burn-rate. We believe that by staying the course with our
strategy, we will be able to meet our mid and long-term goals for
the benefit of both patients and shareholders." CONSOLIDATED
RESULTS FOR THE FIRST QUARTER ENDED MARCH 31, 2008 Consolidated
revenues were $9.7 million for the three-month period ended March
31, 2008 compared to $9.2 million for the same period in 2007. The
increase in revenues is primarily related to additional sales of
Cetrotide(R) to Merck Sereno, mainly offset by decreased sales
activities of Impavido(R) and Cetrotide(R) in Japan, as well as a
reduction in license fees revenues related to services rendered
through our collaborations with Spectrum Pharmaceuticals, Inc. and
Keryx Biopharmaceuticals, Inc. Consolidated selling, general and
administrative (SG&A) expenses were $4.4 million for the
three-month period ended March 31, 2008 compared to $4.9 million
for the same period in 2007. The decrease in SG&A expenses for
the three-month period ended March 31, 2008, compared to the same
period in 2007, is primarily due to non-recurring corporate
expenses related to organizational changes that were implemented in
the first quarter of 2007. A decrease in selling expenses was
further impacted by lower royalties and commission expenses related
to lower sales volumes of Cetrotide(R) in Japan and Impavido(R).
Consolidated R&D costs, net of tax credits and grants were
$13.7 million for the three-month period ended March 31, 2008
compared to $7.9 million for the same period in 2007. Additional
R&D expenses of $5.8 million spent in the first quarter 2008
compared to the same period in 2007 are mainly related to the
advancement of our lead product cetrorelix in Phase 3 for BPH, as
well as further advancement of targeted, earlier-stage development
programs including AEZS-108 and AEZS-112, our tubulin inhibitor,
both of which are in oncology. Consolidated net loss for the
three-month period ended March 31, 2008 was $10.9 million or $0.20
per basic and diluted share, compared to $5.1 million or $0.10 per
basic and diluted share for the same period in 2007. The increase
in net loss is primarily attributable to the increased R&D
costs related to the advancement of cetrorelix in Phase 3 for the
treatment of BPH. The consolidated cash and short-term investments
were $38.7 million as of March 31, 2008. CONFERENCE CALL Management
will be hosting a conference call for the investment community
beginning at 4:00 p.m. Eastern Time today, Wednesday, May 7, to
discuss first quarter 2008 results. To participate in the live
conference call by telephone, please dial 416-644-3425,
514-807-8791 or 800-796-7558. Individuals interested in listening
to the conference call on the Internet may do so by visiting
http://www.aezsinc.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.aezsinc.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. We disclaim any obligation
to update any such factors or to publicly announce the result of
any revisions to any of the forward-looking statements contained
herein to reflect future results, events or developments except if
we are requested by a governmental authority or applicable law.
Attachment: Financial summary (In thousands of US dollars, except
share and per share data) Three months ended CONSOLIDATED RESULTS
March 31, Unaudited 2008 2007
-------------------------------------------------------------------------
$ $ Revenues Sales and royalties 7,942 7,204 License fees 1,806
2,029 ----------------------- 9,748 9,233 -----------------------
Operating expenses Cost of sales 4,604 3,310 Selling, general and
administrative 4,404 4,892 R&D costs, net of tax credits 13,689
7,907 Depreciation and amortization 1,209 1,427
----------------------- 23,906 17,536 ----------------------- Loss
from operations (14,158) (8,303) Other revenues net of expenses
3,292 616 Income tax recovery - 2,544 ----------------------- Net
loss from continuing operations (10,866) (5,143) Net earnings from
discontinued operations - 33 ----------------------- Net loss
(10,866) (5,110) ----------------------- -----------------------
Net loss per share from continuing operations Basic and diluted
(0.20) (0.10) Net earnings per share from discontinued operations
Basic and diluted - - Net loss per share Basic and diluted (0.20)
(0.10) Weighted average number of shares Basic and diluted
53,187,470 53,179,470 (In thousands of US dollars, except share and
per share data) CONSOLIDATED BALANCE SHEETS Unaudited March 31,
December 31, 2008 2007
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$ $ Cash and short-term investments 38,714 41,387 Other current
assets 18,527 18,193 ----------------------- 57,241 59,580
Long-term assets 60,281 63,783 ----------------------- Total assets
117,522 123,363 ----------------------- -----------------------
Current liabilities 26,135 22,255 Other long-term liabilities
13,354 12,517 ----------------------- 39,489 34,772 Shareholders'
equity 78,033 88,591 ----------------------- Total liabilities and
shareholders' equity 117,522 123,363 -----------------------
----------------------- DATASOURCE: AETERNA ZENTARIS INC. CONTACT:
Investor Relations: Dennis Turpin, CA, Senior Vice President and
Chief Financial Officer, (908) 330-5188, ; Media Relations: Paul
Burroughs, Director of Communications, (418) 575-8982,
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