Full Press Release Details
terna Zentaris Inc. 1405 du Parc-Technologique Blvd.
Qu bec (Qu bec) Canada G1P 4P5 T 418 652-8525 F 418 652-0881
Zentaris Reports First Quarter 2012 Financial and Operating Results
All amounts are in U.S. dollars (unless otherwise noted)
Quebec City, Canada, May 9, 2012 Aeterna Zentaris Inc. (NASDAQ: AEZS) (TSX: AEZ) (the Company ),
today reported financial and operating results as at and for the first quarter ended March 31, 2012.
AEZS-108 (LHRH-Targeted Cytotoxic Conjugate)
AEZS-130 (Oral Ghrelin Agonist)
Perifosine (Oral Akt Inhibitor)
Corporate Developments
At-The-Market Issuance Program
Cash and cash equivalents
totalled $45.6 million as at March 31, 2012, compared to $46.9 million as at December 31, 2011.
Juergen Engel, Ph.D, Aeterna Zentaris President and Chief Executive Officer, commented, The last weeks were quite challenging with the
disappointing results for the perifosine Phase 3 trial in colorectal cancer. Nevertheless, after regaining North American rights to perifosine, conducting a thorough analysis of the situation and consulting with key opinion leaders, we have decided
to continue the Phase 3 trial in multiple myeloma up until the predefined interim analysis, as we believe this compound still has the potential to become a novel oral anticancer treatment.
Also during the quarter, other development programs moved forward as Yakult initiated a trial in colorectal cancer with perifosine and the Michael E. DeBakey of VA Medical Center initiated a trial
with AEZS-130 in cancer cachexia. Furthermore, we signed an agreement with Ventana to develop a companion diagnostic for AEZS-108.
years, we have shown resilience by overcoming important obstacles. I am proud to say that still today, our team of seasoned professionals remains committed in providing cancer patients with novel treatments, while striving to make Aeterna Zentaris
an important company in this field.
Dennis Turpin, CA, Senior Vice President and Chief Financial Officer at Aeterna Zentaris stated,
As of March 31, 2012, we had a cash position of over $45 million which allows us to be well poised to continue to move our key product candidates through the pipeline.
CONSOLIDATED RESULTS AS AT AND FOR THE FIRST QUARTER ENDED MARCH 31, 2012
Revenues were $9.5 million for the quarter ended March 31, 2012, compared to $7.4 million for the same quarter in 2011. This increase is largely attributable to comparative higher
deliveries of Cetrotide to certain customers and to higher research and development services provided, partly
offset by the relative weakening of the euro against the US dollar.
R&D costs, net of refundable tax credits and grants were relatively stable at $5.6 million
for the quarter ended March 31, 2012, compared to $5.5 million for the same quarter in 2011.
Net loss amounted to $11.5 million,
or $0.11 per basic and diluted share, for the quarter ended March 31, 2012, compared to $10.1 million, or $0.12 per basic and diluted share, for the same quarter in 2011. This increase is mainly due to higher net finance costs attributable to
the change in fair value of our warrant liability, partly offset by lower income tax expense.
Management will be hosting a conference call for the investment community beginning at 8:30 a.m. (Eastern Time) today, Wednesday, May 9, 2012,
to discuss the 2012 first quarter results. Individuals interested in participating in the live conference call by telephone may dial, in Canada, 514-807-9895 or 647-427-7450, outside Canada, 888-231-8191. They may also listen through the Internet at
www.aezsinc.com in the newsroom section. A replay will be available on the Company s website for 30 days following the live event.
For reference, the Management s Discussion and Analysis ( MD&A ) for the first quarter 2012 with the associated Unaudited Interim Consolidated Financial Statements can be found at
About Aeterna Zentaris Inc.
Aeterna Zentaris is an oncology and endocrinology drug development company currently investigating treatments for various unmet medical needs. The Company s pipeline encompasses compounds at all
stages of development, from drug discovery through to marketed products. For more information please visit www.aezsinc.com.
Forward-Looking Statements
release contains forward-looking statements made pursuant to the safe harbour provisions of the U.S. Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that 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 risk that safety and efficacy data from any of our Phase 3 trials may not coincide with the data analyses from previously reported Phase 1 and/or Phase 2 clinical trials, 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 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,
unless required to do so by a governmental authority or by applicable law.
Ginette Beaudet Valli res
Relations Coordinator
(418) 652-8525 ext. 265
Director of Communications
(418) 652-8525 ext. 406
Interim Consolidated Statements of Comprehensive Loss Information
| Three months ended March 31, | ||||||||
| (in thousands, except for share and per share data) | 2012 | 2011 | ||||||
| $ | $ | |||||||
| Revenues | ||||||||
| Sales and royalties | 8,308 | 7,092 | ||||||
| License fees and other | 1,202 | 297 | ||||||
| 9,510 | 7,389 | |||||||
| Operating expenses | ||||||||
| Cost of sales | 7,513 | 6,023 | ||||||
| Research and development costs, net of refundable tax credits and grants | 5,572 | 5,498 | ||||||
| Selling, general and administrative expenses | 3,213 | 3,159 | ||||||
| 16,298 | 14,680 | |||||||
| Loss from operations | (6,788 | ) | (7,291 | ) | ||||
| Finance income | 77 | 824 | ||||||
| Finance costs | (4,740 | ) | (2,749 | ) | ||||
| Net finance costs | (4,663 | ) | (1,925 | ) | ||||
| Loss before income taxes | (11,451 | ) | (9,216 | ) | ||||
| Income tax expense | (841 | ) | ||||||
| Net loss | (11,451 | ) | (10,057 | ) | ||||
| Other comprehensive loss | ||||||||
| Foreign currency translation adjustments | (255 | ) | (1,339 | ) | ||||
| Comprehensive loss | (11,706 | ) | (11,396 | ) | ||||
| Net loss per share | ||||||||
| Basic and diluted | (0.11 | ) | (0.12 | ) | ||||
| Weighted average number of shares outstanding | ||||||||
| Basic and diluted | 106,016,843 | 83,842,054 |
Interim Consolidated Statement of Financial Position Information
| (in thousands) | As at March 31, 2012 | As at December 31, 2011 | ||||||
| $ | $ | |||||||
| Cash and cash equivalents | 45,583 | 46,881 | ||||||
| Trade and other receivables and other current assets | 12,995 | 13,258 | ||||||
| Restricted cash | 834 | 806 | ||||||
| Property, plant and equipment, net | 2,452 | 2,512 | ||||||
| Other non-current assets | 12,189 | 11,912 | ||||||
| Total assets | 74,053 | 75,369 | ||||||
| Payables and other current liabilities | 16,684 | 17,784 | ||||||
| Long-term payable (current and non-current portions) | 60 | 88 | ||||||
| Warrant liability (current and non-current portions) | 12,860 | 9,204 | ||||||
| Non-financial non-current liabilities* | 53,126 | 52,839 | ||||||
| Total liabilities | 82,730 | 79,915 | ||||||
| Shareholders deficiency | (8,677 | ) | (4,546 | ) | ||||
| Total liabilities and shareholders deficiency | 74,053 | 75,369 |