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"Over the past five months, the executive management team completed athorough review of our extensive pipeline and business operations with thegoal of identifying our critical success factors and placing the appropriateclarity and prioritization surrounding our key value drivers," said David J.Mazzo, Ph.D., AEterna Zentaris' President and Chief Executive Officer. "Bypreparing this strategic roadmap, we have clearly established a solidfoundation for the basis of our strategy and have identified the strategiclevers we believe will ensure long-term, sustained growth. Our experiencedteam is highly focused on execution and committed to realizing the true valueof our Company."
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At September 30, 2007, the Company had consolidated cash and short-terminvestments of $47.6 million compared to $61 million as of December 31, 2006.
Consolidated revenues for the three-month period ended September 30, 2007were $11.6 million, an increase of 9.4% compared to $10.6 million for the sameperiod in 2006. The increase in consolidated revenues is mainly attributed tohigher license fees revenues, partly reduced by lower sales of Cetrotide(R).The increase in license fees revenues is related to a milestone payment of$1.4 million received from our partner, Ardana Biosciences, Ltd., for theinitiation of a Phase 3 study for the diagnosis of growth hormone disorderswith our Growth Hormone Secretagogue, AEZS-130. The sales of Cetrotide(R) werelower for the three-month period ended September 30, 2007 compared to the sameperiod in 2006, due to a significant first order of the product related to thelaunch in Japan in September 2006.
Consolidated R&D costs, net of tax credits and grants (R&D), were $10.1million for the three-month period ended September 30, 2007 compared to $6.2million for the same period in 2006. The increase in consolidated R&D expenseis related to the additional expenses incurred for the ongoing Phase 3 programwith cetrorelix in BPH, as well as further advancement of targeted, earlierclinical-stage development programs including AEZS-108.
Consolidated selling, general and administrative (SG&A) expenses were $6.1million for the three-month period ended September 30, 2007 compared to $4.5million for the same period in 2006. The increase in consolidated SG&A isrelated to the restructuring of the management team and the Board as well asthe opening of a new office in Warren, New Jersey.
Consolidated loss from operations increased to $9.6 million for thethree-month period ended September 30, 2007 compared to $5.8 million for thesame period in 2006. The increase in consolidated loss from operations isattributable to increased R&D and SG&A expenses, partly offset by increasedrevenues.
Consolidated net loss from continuing operations for the three-monthperiod ended September 30, 2007 was $8.7 million compared to $4.7 million forthe same period in 2006. This increase in consolidated net loss fromcontinuing operations is attributable to a combination of higher R&D, SG&Aexpenses and other expenses recorded during the three-month period endedSeptember 30, 2007.
Consolidated net earnings from discontinued operations for the three-monthperiod ended September 30, 2006 were $3.1 million and were completelyattributable to the Company's former subsidiary Atrium Innovations whichoperations were excluded from consolidation effective on October 18, 2006.
Consolidated net loss for the three-month period ended September 30, 2007was $8.7 million or $0.16 per basic and diluted share, compared to $1.6million or $0.03 per basic and diluted share for the same period in 2006. Theconsoli
