QUEBEC CITY, Aug. 12 /PRNewswire-FirstCall/ - AEterna Zentaris Inc. (NASDAQ: AEZS, TSX: AEZ), a global biopharmaceutical company focused on endocrinology and oncology, today reported financial and operating results for the second quarter ended June 30, 2008.
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Second Quarter 2008 Highlights
Juergen Ernst, Chairman, Interim President and CEO at AEterna Zentaris commented, "During the quarter, we achieved our key objectives as our Phase 3 program in BPH with our lead compound cetrorelix met all recruitment goals and remains on track, with first results expected in the third quarter of 2009. Furthermore, we monetized our Quebec City building which provided additional non-dilutive funding. Over the next few months, we will focus on advancing our Phase 3 program in BPH with cetrorelix, while we endeavour to conclude additional non-dilutive transactions and strategic partnerships."
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CONSOLIDATED RESULTS FOR THE SECOND QUARTER ENDED JUNE 30, 2008
Consolidated sales and royalties increased to $8.2 million for the three-month period ended June 30, 2008, compared to $7.7 million for the same period in 2007. The increase in sales and royalties for the three-month period ended June 30, 2008 is related primarily to additional sales of Cetrotide(R), partly offset by the exclusion of sales from Impavido(R) in the second quarter of 2008.
License fees revenues decreased to $2.2 million for the three-month period ended June 30, 2008, compared to $3.9 million for the same period in 2007. The decrease for the three-month period ended June 30, 2008, is mainly attributable to the termination of the Company's licensing agreement with Solvay in 2007, which triggered additional amortization of upfront payments in the second quarter of 2007.
Consolidated R&D costs, net of tax credits and grants were $17.3 million for the three-month period ended June 30, 2008 compared to $7.8 million for the same period in 2007. Additional R&D expenses for the three-month period ended June 30, 2008, are mainly related to the advancement of our Phase 3 program in BPH with our lead product, cetrorelix.
Consolidated selling, general and administrative (SG&A) expenses were $6.6 million for the three-month period ended June 30, 2008 compared to $4.5 million for the same period in 2007. The increase in SG&A expenses for the three-month period ended June 30, 2008 is primarily due to non-recurring corporate expenses related to organizational changes, including severance paid to the former President and CEO as well as to the Senior Vice President and CBO that were implemented in the second quarter of 2008.
Consolidated net loss for the three-month period ended June 30, 2008 was $20.6 million or $0.39 per basic and diluted share, compared to $4.8 million or $0.09 per basic and diluted share for the same period in 2007. The increase in net loss for the three-month period ended June 30, 2008, compared to the same period in 2007, is primarily attributable to the increased R&D costs related to the advancement of cetrorelix into our Phase 3 program for the treatment of BPH and non-recurring SG&A corporate costs.
The consolidated cash and short-term investments were $24.8 million as at June 30, 2008.
CONFERENCE CALL
Management will be hosting a conference call for the investment community beginning at 4:30 p.m. Eastern Time today, Tuesday, August 12, to discuss second quarter 2008 results. To participate in the live conference call by telephone, please dial 416-644-3430, 514-807-8791 or 800-814-4862. 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.
