UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13G/A
Amendment No. 3
Under the Securities Exchange Act of 1934
Aeterna Zentaris Inc.
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(Name of Issuer)
Common Stock, no par value
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(Title of Class of Securities)
00797520
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(CUSIP Number)
October 10, 2006
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(Date of Event Which Requires Filing of this Statement)
Check the appropriate box to designate the rule pursuant to which
this Schedule is filed:
[X] Rule 13d-1(b)
Rule 13d-1(c)
Rule 13d-1(d)
*The remainder of this cover page shall be filled out for a
reporting person's initial filing on this form with respect to the
subject class of securities, and for any subsequent amendment
containing information which would alter the disclosures provided
in a prior cover page.
The information required in the remainder of this cover page shall
not be deemed to be "filed" for the purpose of Section 18 of the
Securities Exchange Act of 1934 ("Act") or otherwise subject to
the liabilities of that section of the Act but shall be subject to
all other provisions of the Act (however, see the Notes).
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CUSIP No. 007975204 SCHEDULE 13G Page 2 of 5 Pages
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
North Sound Capital LLC (1)
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a)[x]
(b)[ ]
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3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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5 SOLE VOTING POWER
0
NUMBER OF --------------------------------------------------------
SHARES 6 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 0
EACH --------------------------------------------------------
REPORTING 7 SOLE DISPOSITIVE POWER
PERSON
WITH 0
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8 SHARED DISPOSITIVE POWER
0
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9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
0
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10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
[ ]
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11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
0
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12 TYPE OF REPORTING PERSON*
IA
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(1) The shares described herein are held by North Sound Legacy Institutional
Fund LLC and North Sound Legacy International Ltd. (the "Funds"). North
Sound Capital LLC (the "Reporting Person") is the managing member and
investment advisor, respectively, of the Funds and has voting and
investment control with respect to the shares held by the Funds. Thomas
McAuley is the Manager of the Reporting Person. Although each of the
Reporting Person and Mr. McAuley may be deemed the beneficial owner of the
shares held by the Funds pursuant to Rule 13d-3 under the Act, neither
owns such shares directly. Each of the Reporting Person and Mr. McAuley
disclaims beneficial ownership of the shares held by the Funds except to
the extent of their respective economic interests in each Fund.
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CUSIP No. 007975204 SCHEDULE 13G Page 3 of 5 Pages
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Item 1(a). Name of Issuer:
Aeterna Zentaris Inc.
Item 1(b). Address of Issuer's Principal Executive Offices:
1405 Parc-Technologique Boulevard
Quebec, PQ G1P4P5
Canada
Item 2(a). Name of Person Filing.
Item 2(b). Address of Principal Business Office or, if None, Residence.
Item 2(c). Citizenship.
North Sound Capital LLC
20 Horseneck Lane
Greenwich, CT 06830
Delaware limited liability company
Item 2(d). Title of Class of Securities:
Common Stock, no par value
Item 2(e). CUSIP Number:
007975204
Item 3. If this statement is filed pursuant to ss.ss.240.13d-1(b) or
240.13d-2(b) or (c), check whether the person filing is a:
[X] An investment adviser in accordance with
ss.13d-1(b)(1)(ii)(E).
Item 4. Ownership.
The following is information regarding the aggregate number
and percentage of the class of securities of the issuer
identified in Item 1 as of October 11, 2006:
(a) Amount beneficially owned: 0
(b) Percent of Class: 0
(c) Number of shares as to which such person has:
(i) sole power to vote or direct the vote: 0
(ii) shared power to vote or direct the vote: 0
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CUSIP No. 007975204 SCHEDULE 13G Page 4 of 5 Pages
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(iii) sole power to dispose or direct the
disposition of: 0
(iv) shared power to dispose or direct the
disposition of: 0
Item 5. Ownership of Five Percent or Less of a Class.
[X]
Item 6. Ownership of More than Five Percent on Behalf of Another
Person.
Not Applicable
Item 7. Identification and Classification of the Subsidiary Which
Acquired the Security Being Reported on By the Parent Holding
Company.
Not Applicable
Item 8. Identification and Classification of Members of the Group.
Not Applicable
Item 9. Notice of Dissolution of Group.
Not Applicable
Item 10. Certification.
Certification pursuant to ss.240.13d-1(b):
By signing below I certify that, to the best of my knowledge
and belief, the securities referred to above were acquired
and are held in the ordinary course of business and were not
acquired and are not held for the purpose of or with the
effect of changing or influencing the control of the issuer
of the securities and were not acquired and are not held in
connection with or as a participant in any transaction having
that purpose or effect.
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CUSIP No. 007975204 SCHEDULE 13G Page 5 of 5 Pages
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SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Dated: October 11, 2006
NORTH SOUND CAPITAL LLC
By: /s/ Thomas McAuley
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Name:Thomas McAuley
Title:Chief Investment Officer