AEterna Zentaris Reports Second Quarter 2004 Financial and Operating Results
August 11 2004 - 8:50AM
PR Newswire (US)
AEterna Zentaris Reports Second Quarter 2004 Financial and
Operating Results All amounts are in Canadian dollars QUEBEC CITY,
Canada, Aug. 11 /PRNewswire-FirstCall/ -- AEterna Zentaris Inc.
(TSX: AEZ; Nasdaq: AEZS) today reported financial and operating
results for the second quarter ended June 30, 2004. Total revenue
for the second quarter 2004 was $65.8 million, an increase of 69%
compared with total revenue of $38.9 million for the same period in
2003. R&D expenses net of tax credits and grants decreased from
$10.6 million in the second quarter of 2003 to $8.7 million in the
second quarter of 2004, reflecting the streamlining of the clinical
development program. Operating income for the second quarter 2004
was $9.2 million, compared to an operating loss of $1.1 million for
the second quarter 2003, primarily reflecting the strong revenue
growth of 90% from the majority-owned subsidiary Atrium, and a
non-recurrent $6.5 million milestone gained from Solvay
Pharmaceuticals, the Company's worldwide (ex-Japan) exclusive
development and marketing partner for cetrorelix. This milestone
was triggered by Solvay's decision to proceed with further clinical
development of cetrorelix. The Company's net earnings were $1.3
million for the second quarter of 2004, or $0.03 per share,
compared with a net loss of $4.7 million, or $0.11 per share, for
the comparable period in 2003. The profitability for this quarter
is primarily a result of the non- recurrent milestone gained from
Solvay. "During the second quarter of 2004, we delivered a solid
financial performance while also achieving our strategic
objectives," said Gilles Gagnon, AEterna Zentaris President and
Chief Executive Officer. "In addition to across-the-board strong
financial performance from all our sectors of activity, we
continued to advance our product pipeline and reported positive
results on perifosine and cetrorelix, which support the ongoing and
planned clinical development of these drug candidates in their
respective indications. To that end, we are planning the initiation
of Phase II trials on perifosine in combination with radiotherapy,
while further clinical development of cetrorelix in endocrine
therapy is being planned with our partner Solvay Pharmaceuticals.
We believe that our accomplishments in the recent months have
established a sound foundation for us to continue to grow our
business and to achieve our objectives for the remainder of 2004."
Dennis Turpin, AEterna Zentaris' Vice President and CFO, added,
"With over $64 million in cash and short-term investments, as well
as our continued strong financial performance, we are in an
excellent financial position to continue to carry out our business
plan." Atrium Biotechnologies' Second Quarter Results Second
quarter 2004 operating results for Atrium, AEterna Zentaris' 62%
owned subsidiary, included, for the first time, full three months
of operations from US-based Pure Encapsulations which was acquired
in March 2004. During the second quarter of 2004, sales for Atrium
were $47 million, an increase of 90% compared with $24.7 million in
sales for the comparable period in 2003. Operating income was $7.4
million during the quarter, compared with $3.2 million for the same
period in 2003, representing a 131.8% increase. Net earnings
increased 154.3% to $4.1 million, compared with $1.6 million for
the same period in 2003. The increase reflects the combination of
internal growth, as well as growth driven by the acquisition in
March 2004 of Pure Encapsulations Inc., as well as of Chimiray/
Interchemical and Siricie in the second half of 2003. "The recent
acquisition of Pure Encapsulations Inc. and its successful
integration brought us an important strategic presence in USA in
the field of nutritional supplements dedicated to healthcare
professionals and largely contributed to deliver this growth," said
Luc Dupont, President of the Executive Committee and CEO of Atrium
Biotechnologies Inc. "We intend to continue to aggressively pursue
our acquisition strategy." Second Quarter 2004 Highlights -
Positive Phase II results for cetrorelix in endometriosis, uterine
myoma and benign prostate hyperplasia - Favorable data continues to
support the ongoing and planned clinical development of cetrorelix
- Positive Phase I results for perifosine in combination with
radiotherapy in cancer - Results support the planned initiation of
Phase II trials on perifosine in combination with radiotherapy -
New agreement with Ardana Bioscience for LHRH antagonist teverelix
in prostate cancer - Name change to AEterna Zentaris and addition
to the NASDAQ Biotech Index - Atrium revenues of $47 million, an
increase of 90% and net earnings of $4.1 million, an increase of
154.3% AEterna Zentaris Six-Month Consolidated Financial Results
Total revenue for the first half of 2004 increased 56% to $124.3
million, compared with $79.7 million for the first half of 2003.
The Company reported a year-to-date 2004 operating income of $10.8
million, compared with an operating loss of $2.4 million for the
comparable prior-year period. The operating income in 2004
increased 100.5% to $13.5 million compared with $6.7 million for
the same period in 2003. Net loss for the first six months of 2004
was $1.2 million, or $0.03 per share, compared with a net loss of
$9.6 million, or $0.23 per share, for the first six months of 2003.
Atrium Six-Month Financial Results For the six-month period ended
June 30, 2004, Atrium sales were $92.8 million compared to $53
million in 2003, representing a 75.3% increase. The operating
income increased 100.5% to $13.5 million, compared to $6.7 million
for the same period in 2003. Net income increased 136.8% to $7.7
million, compared to $3.2 million for the same period in 2003.
Outlook 2004 The Company's specific goals for the remainder of 2004
include: - Initiate Phase II trials on perifosine in combination
with radiotherapy - Report preliminary monotherapy Phase II data on
perifosine from multiple North American trials - Develop new
perifosine analogs - Advance one or more preclinical compounds into
Phase I clinical trials - Report Phase II data on cetrorelix in BPH
- Advance clinical development of cetrorelix with Solvay - Pending
marketing approval for Cetrotide(R) in Japan for in vitro
fertilization Conference Call Information Management will be
hosting a conference call for the investment community beginning at
10:00 a.m. Eastern Time today, Wednesday, August 11, to discuss
second quarter financial and operating results and to answer
questions. To participate in the live conference call by telephone,
please dial 514-807-8791, 416-640-4127 from Canada or 800-814-4941
from outside Canada. Individuals interested in listening to the
conference call via 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 biopharmaceutical company focused in oncology
and endocrine therapy. Its extensive portfolio, from drug discovery
to marketed products, includes perifosine, an orally-active AKT
inhibitor in several Phase II trials for multiple cancers, and
cetrorelix, an LHRH antagonist already marketed for in vitro
fertilization under the brand name Cetrotide(R), and also in
advanced clinical development for the treatment of uterine myoma,
endometriosis and benign prostatic hyperplasia (BPH). AEterna
Zentaris also owns 62% of Atrium Biotechnologies Inc., which
develops, distributes and markets active ingredients, specialty
fine chemicals, cosmetic and nutritional products for the
cosmetics, chemical, pharmaceutical and nutritional industries.
News releases and additional information about AEterna Zentaris are
available on its new Web site 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. > DATASOURCE: AETERNA
ZENTARIS INC. (FORMERLY/ANCIENNEMENT - LES LABORATOIRES AETERNA
CONTACT: Media Relations: Paul Burroughs, (418) 652-8525 ext. 406,
; Investor Relations: Jacques Raymond, (418) 652-8525 ext. 360, ;
U.S. Investor Relations: Lippert/Heilshorn & Associates, Kim
Golodetz, (212) 838-3777, ; Europe: Matthias Seeber, +49 69 42602
3425, ; To request a free copy of this organization's annual
report, please go to http://www.newswire.ca/ and click on
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