QUEBEC CITY, May 7 /PRNewswire-FirstCall/ - AEterna Zentaris Inc. , a global biopharmaceutical company focused on endocrinology and oncology, today reported financial and operating results for the first quarter ended March 31, 2008.
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 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.
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.
CONTACT: Investor Relations: Dennis Turpin, CA, Senior Vice President and
Chief Financial Officer, (908) 330-5188, dturpin@aezsinc.com; Media
Relations: Paul Burroughs, Director of Communications, (418) 575-8982,
pburroughs@aezsinc.com
