[AEterna Laboratoires Logo]
PRESS RELEASE
FOR IMMEDIATE RELEASE
AETERNA LABORATORIES REPORTS THIRD QUARTER RESULTS
QUEBEC CITY, QUEBEC, OCTOBER 23, 2001 - AEterna Laboratories Inc. (TSE: AEL,
NASDAQ: AELA) today reported its results for the three-month period ended
September 30, 2001. All amounts are expressed in Canadian dollars (CAN$ 1.00 =
US$ 0.63).
"This quarter was marked by the completion of two important projects at the
financial and acquisition levels," stated Dr. Eric Dupont, AEterna's President
and Chief Executive Officer. "First, the success of our recent public offering
provides us with the financial latitude to pursue our growth strategy.
Furthermore, we have a sufficient cash position to carry on with Neovastat's
clinical development program within our anticipated deadlines. Second, the
acquisition of Unipex enables our subsidiary Atrium to position itself as a
significant player in a high growth sector," said Dr. Dupont.
During this quarter, consolidated sales of Atrium Biotechnologies Inc., a
subsidiary of AEterna, reached $18.1 million in comparison to $2.0 million
during the same quarter last year. For the first nine months of the year, total
sales reached $23.6 million, compared to $6.1 million for the same period in
2000.
"The consolidated net profit of Atrium reached $5 million for the first nine
months of 2001, compared to $4 million for the same period last year, an
increase of 25%," commented Luc Dupont, Chief Executive Officer and Vice
Chairman of the Board at Atrium. "These results demonstrate the efficacy of
Atrium's growth strategy which is based on maintaining an internal growth rate
above industry average, on acquiring other companies and on in-licensing new
technologies. These results also reflect management's ability to quickly
integrate a company such as Unipex into Atrium's activities in cosmetics,
pharmaceuticals, nutrition and fine chemicals."
AEterna's Research and Development (R&D) investments amounted to $7.2 million
during this quarter in comparison to $5.2 million last year. The accelerated
progress of the international Phase III clinical trial in kidney cancer and the
Phase II trial in multiple myeloma explain this increase of 38%. For the first
nine months of the year, more than $21 million have been invested in Neovastat's
development program, an increase of $5.5 million or 35% in comparison to last
year.
AEterna's financial situation, as of September 30, 2001, remains solid with over
$50 million in cash and short-term investments, without taking into account a
$15 million contribution from the Technology Partnerships Canada program and a
$5 million indirect financial contribution from the U.S. National Cancer
Institute. In September, the company
successfully completed a public offering of 1.957 million subordinate voting
shares at a price of $8.00 per share, for gross proceeds of $15.7 million.
For this third quarter, AEterna recorded a consolidated net loss of $5.0 million
or $0.16 per share, which compares with $1.7 million or $0.06 per share for the
same quarter last year. As of September 30, 2001, the consolidated net loss is
$0.7 million which compares with $5.5 million for the same date last year.
OVERVIEW OF THIRD QUARTER ACTIVITIES
- PUBLIC OFFERING OF $15.7 MILLION
AEterna successfully completed a public offering of 1.957 million
subordinate voting shares at a price of $8.00 per share, for gross proceeds
of $15.7 million.
- ATRIUM ACQUIRES UNIPEX FOR $21 MILLION
Atrium Biotechnologies Inc., a subsidiary of AEterna, invested $21 million
to acquire Unipex, a privately-owned French company specializing in
value-added services of importation, in supporting innovation, and in
distributing raw materials and high-end brand-name additives. The
transaction was financed from Atrium's cash surplus. Atrium now holds 70%
of the Unipex shares and senior Unipex management retains control of the
remaining 30%.
- NOMINATION AT ATRIUM
Mr. Luc Dupont, Chief Executive Officer and Vice Chairman of the Board at
Atrium, announced the nomination of Richard Bordeleau as President of
Atrium, who will take on new corporate representation mandates. Mr. Dupont
will continue to assume company management while devoting more time to
Atrium's strategic planning.
- INCREASED INTELLECTUAL PROPERTY HOLDINGS
During this quarter, AEterna has received a notice of allowance from the
United States Patent and Trademark Office for a patent giving extended
coverage to a Neovastat manufacturing process. AEterna has also submitted a
new application for a patent to cover the composition of matter of a new
serine elastase inhibitor isolated from Neovastat. AEterna's intellectual
property portfolio now contains twelve (12) patents - six (6) issued, one
(1) allowed and five (5) pending.
- SCIENTIFIC ARTICLES
Three (3) scientific articles on Neovastat were approved for release in the
following peer review publications: Clinical Experimental Metastasis,
Seminar in Oncology and the Journal of American Academy of Dermatology.
ABOUT AETERNA AND NEOVASTAT
AEterna Laboratories Inc. is a Canadian biopharmaceutical company and a leader
in the field of angiogenesis inhibitors. The Company's efforts are mainly
focused on developing new cancer therapies.
AEterna's lead compound, Neovastat, is currently undergoing two Phase III
clinical trials for the treatment of lung and kidney cancer, and one Phase II
trial for treatment of multiple myeloma, a form of blood cancer. These clinical
trials are currently being held in more than 140 clinical institutions in
Canada, the U.S. and several European countries.
AEterna shares are listed on the Toronto Stock Exchange (AEL) and the Nasdaq
(AELA).
News releases and additional information about AEterna are available on its Web
site at www.aeterna.com.
SAFE HARBOR STATEMENT
This press release contains forward-looking statements, which are 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 the business opportunities in
the pharmaceutical industry, uncertainties related to the regulatory process and
general changes in economic conditions. Investors should consult the Company's
ongoing 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 -
FOR MORE INFORMATION, CONTACT:
INVESTOR RELATIONS: MEDIA RELATIONS:
CANADA
Jacques Raymond Paul Burroughs
Tel.: (418) 652-8525 ext 360 Tel.: (418) 652-8525 ext 406
Fax: (418) 577-7700 Fax: (418) 577-7700
E-mail: jacques.raymond@aeterna.com E-mail: paul.burroughs@aeterna.com
USA
The Investor Relations Group
Lisa Lindberg
Tel.: (212) 825-3210
Fax: (212) 825-3229
E-mail: TheProTeam@aol.com
Attached: Financial Summary
AETERNA LABORATORIES INC. ( TSE: AEL, NASDAQ: AELA)
FINANCIAL SUMMARY
(EXPRESSED IN CANADIAN DOLLARS / CAN$ 1 = US$ 0.63)
QUARTERS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
--------------------------- --------------------------
CONSOLIDATED RESULTS 2001 2000 2001 2000
Unaudited $ $ $ $
----------- ----------- ----------- ----------
(restated) (restated)
Sales 18,138,000 2,036,000 23,573,000 6,074,000
Operating expenses (15,752,000) (870,000) (18,301,000) (2,342,000)
----------- ----------- ----------- ----------
Earnings before the following 2,386,000 1,166,000 5,272,000 3,732,000
Research and development 7,157,000 5,196,000 21,047,000 15,529,000
Research tax credits and grants (789,000) (1,605,000) (5,359,000) (4,751,000)
Depreciation and amortization 473,000 330,000 1,235,000 975,000
----------- ----------- ----------- ----------
Operating loss (4,455,000) (2,755,000) (11,651,000) (8,021,000)
Interest income 641,000 1,114,000 2,697,000 2,583,000
Interest expenses (162,000) (12,000) (599,000) (32,000)
----------- ----------- ----------- ----------
Loss before the following (3,976,000) (1,653,000) (9,553,000) (5,470,000)
Gain on dilution of investment - - 10,224,000 -
Non-controlling interest (750,000) - (1,101,000) -
Income taxes expenses (282,000) - (282,000)
----------- ----------- ----------- ----------
Loss for the period (5,008,000) (1,653,000) (712,000) (5,470,000)
=========== ========== =========== ==========
Loss per share
Basic (0.16) (0.06) (0.02) (0.19)
Fully diluted (0.16) (0.06) (0.02) (0.19)
SEPTEMBER 30, DECEMBER 31,
CONSOLIDATED BALANCE SHEETS 2001 2000
$ $
------------ ------------
(restated)
Cash position 58,253,000 68,649,000
Working capital 66,995,000 70,831,000
Total assets 127,857,000 100,582,000
Long-term debt 12,855,000 4,753,000
Redeemable common shares of the subsidiary - 24,610,000
Non-controlling interest 13,007,000 -
Shareholders' equity 79,356,000 64,394,000
Deficit 16,112,000 15,614,000
STOCK EXCHANGE INFORMATION AS OF SEPTEMBER 30, 2001
Issued and outstanding shares 32.3 million
Fully diluted shares 33.5 million
Market capitalization $237 million
Average daily transactions (9 months) 51,119 shares