AEterna Zentaris Reports First Quarter 2009 Financial and Operating Results
May 06 2009 - 7:00AM
PR Newswire (US)
All amounts are in U.S. dollars QUEBEC CITY, May 6
/PRNewswire-FirstCall/ -- AEterna Zentaris Inc. (NASDAQ:
AEZSNASDAQ:TSX:NASDAQ:AEZ) ("the Company"), a global
biopharmaceutical company focused on endocrinology and oncology,
today reported financial and operating results as at and for the
three months ended March 31, 2009. First Quarter 2009 Highlight
Signing of partnership with sanofi-aventis for cetrorelix in benign
prostatic hyperplasia ("BPH") for the U.S. market: - Initial $30
million upfront payment to the Company; - Up to $135 million in
additional payments upon achieving certain pre-established
regulatory and commercial milestones; - Escalating double-digit
royalties on future net sales of cetrorelix for BPH in the U.S.; -
Sanofi-aventis responsible for the commercialization and booking of
sales in the U.S.; - The Company retained certain rights to
co-promote cetrorelix for BPH in the U.S. Juergen Engel, Ph.D.,
AEterna Zentaris' President and Chief Executive Officer commented,
"The first quarter of 2009 was marked by the signing of a major
agreement with sanofi-aventis for the development, registration and
marketing of our lead compound, cetrorelix, in BPH for the United
States market. The agreement is an important milestone in our quest
to bring cetrorelix to market, provide millions of men with a novel
treatment for BPH and generate significant long-term revenue for
the Company. We expect to disclose results of our Phase 3 program
with cetrorelix in BPH over the next few months as we continue to
evaluate other strategic partnerships for this compound.
Furthermore, we will push forward our promising drug candidates in
oncology, such as AEZS-108 and AEZS-112, while in collaboration
with our partners, we expect to move perifosine and ozarelix to the
final development stages." Dennis Turpin, Senior Vice President and
Chief Financial Officer of AEterna Zentaris added, "The recent
partnership with sanofi-aventis has further strengthened our
financial position. We are now well poised to continue to advance
our lead compounds in endocrinology and oncology." CONSOLIDATED
RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 2009 Consolidated
revenues were $6.1 million for the three-month period ended March
31, 2009, compared to $9.7 million for the same period in 2008. The
decrease is related to lower royalty revenues having been
recognized in the first quarter of 2009. The comparative decrease
is also attributable to euro to US dollar exchange rate
fluctuations, given the comparative strengthening of the US dollar
in the first quarter of 2009 vis-a-vis the euro. Consolidated
selling, general and administrative expenses were $3.6 million for
the three-month period ended March 31, 2009, compared to $4.4
million for the same period in 2008. This decrease is primarily
related to comparative euro to US dollar exchange rate
fluctuations, given the comparative strengthening of the US dollar
in the first quarter of 2009 vis-a-vis the euro, as well as to
continuing cost-saving measures that were implemented beginning in
the second quarter of 2008. Consolidated R&D costs, net of tax
credits and grants, were $11.4 million for the three-month period
ended March 31, 2009, compared to $13.7 million for the same period
in 2008. The comparative decrease in net R&D costs is largely
attributable to euro to US dollar exchange rate fluctuations.
Consolidated net loss was $12.4 million, or $0.23 per basic and
diluted share, for the three-month period ended March 31, 2009,
compared to $10.9 million, or $0.20 per basic and diluted share,
for the same period in 2008. This increase is mainly related to
lower foreign exchange gains recorded in the three-month period
ended March 31, 2009, compared to the same period in 2008. The
increase is also related to a gain recorded in the three-month
period ended March 31, 2008 on the disposal of Impavido(R),
partially offset by the reduction in loss from operations in the
three-month period ended March 31, 2009. Consolidated cash, cash
equivalents and short-term investments were $62.5 million as at
March 31, 2009. CONFERENCE CALL Management will be hosting a
conference call for the investment community beginning at 3:30 p.m.
Eastern Time today, Wednesday, May 6, 2009, to discuss first
quarter 2009 results. Individuals interested in participating in
the live conference call by telephone may dial 416-644-3422,
514-807-8791 or 800-587-1893, or may listen through the Internet at
http://www.aezsinc.com/. A replay will be available on the
Company's website for 30 days following the live event. 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, and 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 to do so by a governmental authority or
applicable law. Attachment: Financial summary Quarterly
Consolidated Statements of Loss (unaudited) Quarters ended March
31,
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(in thousands, except per share data) 2009 2008
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$ $ Revenues Sales and royalties 4,971 7,942 License fees and other
1,140 1,806
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6,111 9,748
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Operating expenses Cost of sales 3,694 4,604 Research and
development costs, net of tax credits and grants 11,437 13,689
Selling, general and administrative 3,554 4,404 Depreciation and
amortization Property, plant and equipment 311 369 Intangible
assets 557 840
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19,553 23,906
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Loss from operations (13,442) (14,158)
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Other income (expenses) Interest income 156 277 Interest expense
(2) (15) Foreign exchange gain 900 2,255 Gain on disposal of
long-lived assets held for sale - 775
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1,054 3,292
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Net loss for the period (12,388) (10,866)
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Net loss per share Basic and diluted (0.23) (0.20)
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Weighted average number of shares Basic and diluted 53,187,470
53,187,470
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Consolidated Balance Sheet Information (unaudited)
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As at As at March 31, December 31, (in thousands) 2009 2008
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$ $ Cash and cash equivalents 61,994 49,226 Short-term investments
477 493 Accounts receivable and other current assets 11,008 12,005
Property, plant and equipment 6,345 6,682 Other long-term assets
39,207 39,936
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Total assets 119,031 108,342
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Accounts payable and other current liabilities 25,990 22,121
Current portion of long-term payable 48 49 Long-term payable 143
172 Non-financial long-term liabilities 85,000 64,525
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Total liabilities 111,181 86,867 Shareholders' equity 7,850 21,475
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Total liabilities and shareholders' equity 119,031 108,342
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DATASOURCE: AETERNA ZENTARIS INC. CONTACT: Investor Relations:
Ginette Vallieres, Investor Relations Coordinator, (418) 652-8525
ext. 265, ; Media Relations: Paul Burroughs, Director of
Communications, (418) 652-8525 ext. 406,
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