FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN ISSUER
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of May 2007
AETERNA ZENTARIS INC.
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1405, Parc-Technologique Boulevard
Quebec, Quebec
Canada, G1P 4P5
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form 20-F Form 40-F X
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Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934
Yes No X
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If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82-_______________
DOCUMENTS INDEX
DOCUMENTS DESCRIPTION
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1. Press release dated May 2, 2007: AEterna Zentaris Reports
First Quarter 2007 Financial and Operating Results
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AEterna Zentaris
AETERNA ZENTARIS INC. 1405 du Parc-Technologique Blvd.
Quebec (Quebec) Canada G1P 4P5 T 418 652-8525 F 418 652-0881
www.aeternazentaris.com
PRESS RELEASE
For immediate release
AETERNA ZENTARIS REPORTS FIRST QUARTER 2007 FINANCIAL AND OPERATING RESULTS
ALL AMOUNTS ARE IN U.S. DOLLARS
QUEBEC CITY, CANADA, MAY 2, 2007 - AEterna Zentaris Inc. (TSX: AEZ; NASDAQ:
AEZS), a global biopharmaceutical company focused on endocrine therapy and
oncology, today reported financial and operating results for the first quarter
ended March 31, 2007.
David J. Mazzo, PhD, AEterna Zentaris' President and Chief Executive Officer
said, "2007 marks the beginning of a new era for AEterna Zentaris. We have
emerged as a pure play biopharmaceutical company with an enviable product
development pipeline and a sound financial position. I am looking forward to
leading the Company to even greater success in the future based on a strategy of
realizing the full potential of our flagship product candidate in BPH,
cetrorelix, as well as the rest of our pipeline."
KEY DEVELOPMENTS FOR THE FIRST QUARTER ENDED MARCH 31, 2007
CORPORATE EVOLUTION
APPOINTMENT OF DAVID J. MAZZO, PHD, AS NEW PRESIDENT AND CHIEF EXECUTIVE
OFFICER (CEO) - The Company announced the appointment of David J. Mazzo, PhD,
as President and CEO, effective April 9, 2007.
COMPLETION OF SPIN-OFF OF SUBSIDIARY ATRIUM BIOTECHNOLOGIES - On January 2,
2007, AEterna Zentaris completed the special distribution in kind of its
remaining interest in Atrium Biotechnologies, representing 11,052,996
subordinate voting shares previously held by the Company, by way of return of
capital to its shareholders, representing nearly $138 million.
ADVANCING THE PIPELINE
INITIATION OF FIRST EFFICACY STUDY OF PHASE 3 PROGRAM WITH CETRORELIX IN
BENIGN PROSTATIC HYPERPLASIA (BPH) - The Company initiated a 600-patient
efficacy study conducted in 40 centers in the U.S. and Canada, under the
supervision of lead investigator, Herbert Lepor, MD, Professor and Martin
Spatz Chairman of Urology, at the New York University School of Medicine, New
York. This study is part of an extensive, 1,500-patient Phase 3 program.
AEterna Zentaris
POSITIVE PHASE 2A RESULTS IN JAPAN WITH CETRORELIX IN BPH - The Company,
along with its Japanese partner, Shionogi, announced positive results for a
Phase 2a trial initiated in 2005 in Japan. The results showed the good safety
and tolerability profile of cetrorelix in Japanese patients at all dosage
regimens with testosterone concentration reduction maintained above
castration level and no suppression of PSA levels at any dosage regimen. Data
generated with Japanese patients showed that the bioavailability of
cetrorelix was similar to what was observed in non-Japanese patients.
INITIATION OF PHASE 1 TRIAL WITH ZEN-012 FOR SOLID TUMORS AND LYMPHOMA - The
Company initiated a 50-patient Phase 1 trial with ZEN-012 for solid tumors
and lymphoma. The trial is being conducted in the U.S. under the supervision
of lead investigator, Daniel D. Von Hoff, MD, Senior Investigator at the
Translational Genomics Research Institute in Phoenix, Arizona.
FINANCIAL AND OPERATING RESULTS FOR THE FIRST QUARTER 2007
Consolidated revenues for the first quarter 2007 were $10 million, an
increase of 14.9% compared to consolidated revenues of $8.7 million for the
same period in 2006. The increase is mainly attributable to additional new
sales of Cetrotide(R), following the September 2006 launch in Japan.
Consolidated R&D expenses net of tax credits amounted to $8.2 million for the
first quarter of 2007 compared to $6.8 million for the same period in 2006. The
increase in R&D expense of $1.4 million was related to the additional expenses
incurred for the Phase 3 program with cetrorelix in BPH, as well as for further
advancement of targeted, earlier-stage development programs.
The Company's consolidated net loss from continuing operations was $5.1 million
for the first quarter of 2007, or $0.10 per share, compared to a consolidated
net loss from continuing operations of $5.9 million or $0.12 per share for the
same period in 2006. This decrease in net loss from continuing operations of
$0.8 million is mainly attributable to a combination of increased revenues and
income tax recovery, as well as the elimination of interest expenses, partly
offset by increased R&D and SG&A expenses.
The Company's consolidated net loss was $5.1 million for the first quarter of
2007, or $0.10 per share, compared to a consolidated net loss of $2.6 million or
$0.05 per share for the same period in 2006. The increase of the net loss for
the first quarter of 2007 is directly attributable to nearly $3.3 million of net
earnings from discontinued operations related to the Company's former
subsidiary, Atrium Biotechnologies Inc., recorded in 2006, partly offset by
reduced net loss from continuing operations.
The consolidated cash and short-term investments were $55 million as of March
31, 2007.
CONFERENCE CALL
Management will be hosting a conference call for the investment community
beginning at 4:00 p.m. Eastern Time today, Wednesday, May 2, 2007 to discuss
first quarter 2007 financial and operating results.
To participate in the live conference call by telephone, please dial
514-807-8791, 416-644-3428 or 800-591-7539. Individuals interested in listening
to the conference call on the Internet may do so by visiting
www.aeternazentaris.com. A replay will be available on the Company's Web site
for 30 days.
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AEterna Zentaris
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
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.
Statements that are not historical facts, including statements preceded by,
followed by, or that include the words "believes", "anticipates", "intends",
"plans", "expects", "estimates", "will," "may", "should", "approximately", and
the negative or other variations of those terms or comparable terminology, are
forward-looking statements. Such statements reflect management's current views,
intentions, strategies and plans and are based on certain assumptions.
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 ability of AEterna Zentaris to implement its
business strategies, the availability of funds and resources to pursue R&D
projects, the successful and timely completion of clinical studies, the
ability of AEterna Zentaris 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.
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CONTACTS:
INVESTOR RELATIONS
Jenene Thomas
(418) 655-6420
jenene.thomas@aeternazentaris.com
Paul Burroughs
Media Relations
(418) 652-8525 ext. 406
paul.burroughs@aeternazentaris.com
ATTACHMENT: Financial summary
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AEterna Zentaris
(IN THOUSANDS OF US DOLLARS, EXCEPT SHARE
AND PER SHARE DATA)
THREE MONTHS ENDED
CONSOLIDATED RESULTS MARCH 31,
UNAUDITED 2007 2006
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$ $
REVENUES
Sales and royalties 8,038 6,576
License fees 1,912 2,172
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9,950 8,748
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OPERATING EXPENSES
Cost of sales 3,463 2,642
R&D costs, net of tax credits and grants 8,184 6,804
Selling, general and administrative 5,096 3,845
Depreciation and amortization 1,464 1,563
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18,207 14,854
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LOSS FROM OPERATIONS (8,257) (6,106)
Interest income 573 228
Interest expense (1) (1,243)
Foreign exchange gain 40 41
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LOSS BEFORE INCOME TAXES (7,645) (7,080)
INCOME TAX RECOVERY 2,535 1,179
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Net loss from continuing operations (5,110) (5,901)
Net earnings from discontinued operations - 3,321
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NET LOSS FOR THE PERIOD (5,110) (2,580)
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NET LOSS PER SHARE FROM CONTINUING OPERATIONS
Basic and diluted (0.10) (0.12)
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NET LOSS PER SHARE
Basic and diluted (0.10) (0.05)
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Weighted average number of shares
Basic and diluted 53,179,470 50,327,227
Issued and outstanding shares 53,179,470 53,133,681
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AEterna Zentaris
(IN THOUSANDS OF US DOLLARS)
CONSOLIDATED BALANCE SHEET MARCH 31, December 31,
UNAUDITED 2007 2006
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$ $
Cash and short-term investments 55,460 61,019
Other current assets 20,406 40,704
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75,866 101,723
Long-term assets 63,466 121,768
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Total assets 139,332 223,491
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Current liabilities 19,169 16,310
Long-term debt 596 704
Other long-term liabilities 18,531 27,598
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38,296 44,612
Shareholders' equity 101,036 178,879
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Total liabilities and shareholders' equity 139,332 223,491
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
AETERNA ZENTARIS INC.
Date: May 3, 2007 By: /s/ Mario Paradis
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Mario Paradis
Vice President, Finance & Administration and
Corporate Secretary