FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN ISSUER
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Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of August 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
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Documents Description
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1. Press release dated August 14, 2007: AEterna Zentaris Reports Second
Quarter 2007 Financial and Operating Results
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[AETERNA ZENTARIS LOGO]
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 SECOND QUARTER 2007 FINANCIAL AND OPERATING RESULTS
ALL AMOUNTS ARE IN U.S. DOLLARS
QUEBEC CITY, CANADA, AUGUST 14, 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 second quarter
ended June 30, 2007.
"I am pleased with our progress during the second quarter. Most importantly, we
commenced patient dosing for the first trial of the Phase 3 program for
cetrorelix in BPH. With recruitment underway, our other clinical programs
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 portfolio and
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.
KEY DEVELOPMENTS FOR THE SECOND QUARTER ENDED JUNE 30, 2007
CORPORATE:
o The Company bolstered its executive management team with the
appointments of Ellen McDonald, MBA, Senior Vice President, Business
Operations and Chief Business Officer, as well as Nicholas J.
Pelliccione, Ph.D., Senior Vice President, Regulatory Affairs and
Quality Assurance.
ADVANCING THE PIPELINE:
CETRORELIX
o Patient dosing commenced with cetrorelix, the Company's lead
luteinizing hormone-releasing hormone (LHRH) antagonist compound, in
the first study of its extensive Phase 3 program in benign prostatic
hyperplasia (BPH).
o AEterna Zentaris regained exclusive worldwide (ex-Japan) rights for
cetrorelix from Solvay Pharmaceuticals (Euronext: SOLB) in all
indications, including endometriosis, without any financial
compensation payable to Solvay.
[AETERNA ZENTARIS LOGO]
OZARELIX
o Positive, detailed Phase 2 BPH results for ozarelix, a
fourth-generation LHRH/GnRH antagonist, were presented at the American
Urological Association (AUA) Annual Meeting.
o Enrollment was completed for the Phase 2b trial in BPH being conducted
in the U.S. and Canada by Spectrum Pharmaceuticals (NASDAQ: SPPI).
PERIFOSINE
o Positive Phase 1 and Phase 2 results for perifosine, an oral
anti-cancer signal transduction inhibitor compound for the treatment
of patients with advanced sarcoma were presented at the American
Society of Clinical Oncology's (ASCO) Annual Meeting.
AEZS-108
o Positive, detailed Phase 1 results for
AEZS-108, a targeted cytotoxic LHRH analog, were reported in female
patients with cancers expressing LHRH receptors at the ASCO Annual
Meeting.
RESULTS FOR THE SECOND QUARTER ENDED JUNE 30, 2007
Consolidated cash and short-term investments were $51.5 million as of June 30,
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 for the same
period in 2006. The increase in consolidated revenues is mainly attributed to
increased sales of both Cetrotide(R) and Impavido(R).
Consolidated R&D costs, net of tax credits and grants (R&D), were $8 million for
the quarter ended June 30, 2007 compared to $7.3 million for the same period in
2006. The increase in R&D expense was related to the additional expenses
incurred with respect to the Phase 3 program with cetrorelix in BPH, as well as
further advancement of targeted, earlier clinical-stage development programs.
Consolidated selling, general and administrative (SG&A) expenses were $4.7
million for the quarter ended June 30, 2007 compared to $4.5 million for the
same period in 2006.
Consolidated loss from operations decreased to $5.1 million for the quarter
ended June 30, 2007 compared to $5.5 million for the same period in 2006. The
decrease in loss from operations is attributable to increased sales of
Cetrotide(R) and Impavido(R) partly offset by additional expenses in R&D.
Net loss from continuing operations for the quarter ended June 30, 2007 was $4.8
million compared to $4.4 million for the same period in 2006. This increase is
attributable to a combination of higher R&D expenses and to the foreign exchange
loss recorded during the quarter ended June 30, 2007, partly offset by increased
revenues.
Net earnings from discontinued operations for the second quarter ended June 30,
2006 were nearly $2.9 million and were completely attributable to the Company's
former subsidiary Atrium Innovations which operations were excluded from
consolidation effective on October 18, 2006.
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[AETERNA ZENTARIS LOGO]
Consolidated net loss for the quarter ended June 30, 2007 was $4.8 million or
$0.09 per basic and diluted share, compared to $1.6 million or $0.03 per basic
and diluted share for the same period in 2006. The net loss increase for the
quarter is attributable to the completion of the distribution of AEterna
Zentaris remaining interest in Atrium to the Company's shareholders on January
2, 2007.
CONFERENCE CALL
Management will be hosting a conference call for the investment community
beginning at 10:30 a.m. Eastern Time today, Tuesday, August 14, to discuss
results for the quarter ended June 30, 2007.
To participate in the live conference call by telephone, please dial
416-644-3420, 514-807-8791 or 800-731-5774. 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.
ABOUT AETERNA ZENTARIS INC.
AEterna Zentaris Inc. is 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.
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 availability of funds and resources to pursue R&D projects, the
successful and timely completion of clinical studies, the ability of the Company
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.
-30-
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[AETERNA ZENTARIS LOGO]
CONTACTS
Jenene Thomas
Senior Director, Investor Relations & Corporate Communications
(908) 938-1475
jenene.thomas@aeternazentaris.com
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Paul Burroughs
Media Relations
(418) 652-8525 ext. 406
paul.burroughs@aeternazentaris.com
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ATTACHMENT: Financial summary
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[AETERNA ZENTARIS LOGO]
(IN THOUSANDS OF US DOLLARS, EXCEPT SHARE
AND PER SHARE DATA)
THREE MONTHS ENDED SIX MONTHS ENDED
CONSOLIDATED RESULTS JUNE 30, JUNE 30,
UNAUDITED 2007 2006 2007 2006
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$ $ $ $
REVENUES
Sales and royalties 8,376 5,227 16,414 11,803
License fees 3,852 4,156 5,764 6,328
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12,228 9,383 22,178 18,131
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OPERATING EXPENSES
Cost of sales 3,196 1,404 6,659 4,046
R&D costs, net of tax credits and grants 8,015 7,262 16,199 14,066
Selling, general and administrative 4,672 4,515 9,768 8,360
Depreciation and amortization 1,491 1,653 2,955 3,216
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17,374 14,834 35,581 29,688
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LOSS FROM OPERATIONS (5,146) (5,451) (13,403) (11,557)
Interest income 305 282 878 510
Interest expense (53) (19) (54) (1,262)
Foreign exchange loss (693) (126) (653) (85)
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LOSS BEFORE INCOME TAXES (5,587) (5,314) (13,232) (12,394)
INCOME TAX RECOVERY 741 884 3,276 2,063
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Net loss from continuing operations (4,846) (4,430) (9,956) (10,331)
Net earnings from discontinued operations - 2,868 - 6,189
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NET LOSS FOR THE PERIOD (4,846) (1,562) (9,956) (4,142)
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NET LOSS PER SHARE FROM CONTINUING OPERATIONS
Basic and diluted (0.09) (0.08) (0.19) (0.20)
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NET LOSS PER SHARE
Basic and diluted (0.09) (0.03) (0.19) (0.08)
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Weighted average number of shares
Basic and diluted 53,179,470 52,682,969 53,179,470 52,098,582
Issued and outstanding shares 53,179,470 53,160,970
[AETERNA ZENTARIS LOGO]
(IN THOUSANDS OF US DOLLARS)
CONSOLIDATED BALANCE SHEETS
JUNE 30, December 31,
UNAUDITED 2007 2006
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$ $
Cash and short-term investments 51,500 61,019
Other current assets 20,186 40,704
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71,686 101,723
Long-term assets 63,809 121,768
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Total assets 135,495 223,491
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Current liabilities 17,642 16,310
Deferred revenues 4,781 8,468
Long-term debt - 704
Other long-term liabilities 10,608 19,130
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33,031 44,612
Shareholders' equity 102,464 178,879
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Total liabilities and shareholders' equity 135,495 223,491
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SIGNATURE
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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: AUGUST 15, 2007 By: /s/Mario Paradis
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Mario Paradis
Senior Vice President, Administration and
Affairs and Corporate Secretary