All amounts are in U.S. dollars
QUEBEC CITY, Aug. 14 /PRNewswire-FirstCall/ AEterna Zentaris Inc. (TSX:AEZ; NASDAQ: AEZS), a global biopharmaceutical company focused on endocrinetherapy and oncology, today reported financial and operating results for thesecond quarter ended June 30, 2007.
"I am pleased with our progress during the second quarter. Mostimportantly, we commenced patient dosing for the first trial of the Phase 3program for cetrorelix in BPH. With recruitment underway, our other clinicalprograms progressing very well and the addition of key executives to our team,we are able to focus on a rigorous strategic review of our product portfolioand business opportunities, and I am confident we will have a coherent plan,optimized for success to communicate to you in September," said David J.Mazzo, Ph.D., AEterna Zentaris' President and Chief Executive Officer.
Consolidated cash and short-term investments were $51.5 million as of June30, 2007 compared to $61 million as of December 31, 2006.
Consolidated revenues for the second quarter ended June 30, 2007 were$12.2 million, an increase of 29.8% compared to revenues of $9.4 million forthe same period in 2006. The increase in consolidated revenues is mainlyattributed to increased sales of both Cetrotide(R) and Impavido(R).
Consolidated R&D costs, net of tax credits and grants (R&D), were $8million for the quarter ended June 30, 2007 compared to $7.3 million for thesame period in 2006. The increase in R&D expense was related to the additionalexpenses incurred with respect to the Phase 3 program with cetrorelix in BPH,as well as further advancement of targeted, earlier clinical-stage developmentprograms.
Consolidated selling, general and administrative (SG&A) expenses were $4.7million for the quarter ended June 30, 2007 compared to $4.5 million for thesame period in 2006.
Consolidated loss from operations decreased to $5.1 million for thequarter ended June 30, 2007 compared to $5.5 million for the same period in2006. The decrease in loss from operations is attributable to increased salesof Cetrotide(R) and Impavido(R) partly offset by additional expenses in R&D.
Net loss from continuing operations for the quarter ended June 30, 2007was $4.8 million compared to $4.4 million for the same period in 2006. Thisincrease is attributable to a combination of higher R&D expenses and to theforeign exchange loss recorded during the quarter ended June 30, 2007, partlyoffset by increased revenues.
Net earnings from discontinued operations for the second quarter endedJune 30, 2006 were nearly $2.9 million and were completely attributable to theCompany's former subsidiary Atrium Innovations which operations were excludedfrom consolidation effective on October 18, 2006.
Consolidated net loss for the quarter ended June 30, 2007 was $4.8 millionor $0.09 per basic and diluted share, compared to $1.6 million or $0.03 perbasic and diluted share for the same period in 2006. The net loss increase forthe quarter is attributable to the completion of the distribution of AEternaZentaris remaining interest in Atrium to the Company's shareholders on January2, 2007.
Management will be hosting a conference call for the investment communitybeginning at 10:30 a.m. Eastern Time today, Tuesday, August 14, to discussresults for the quarter ended June 30, 2007.
To participate in the live conference call by telephone, please dial416-644-3420, 514-807-8791 or 800-731-5774. Individuals interested inlistening to the conference call on the Internet may do so by visitingwww.aeternazentaris.com. A replay will be available on the Company's Web sitefor 30 days.
About AEterna Zentaris Inc.
AEterna Zentaris Inc. is global biopharmaceutical company focused onendocrine therapy and oncology with proven expertise in drug disc