FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN ISSUER
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of February 2003
AETERNA LABORATORIES INC.
-----------------------------------------------
(Translation of registrant's name into English)
1405, boul. du Parc-Technologique
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
----- -----
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
----- -----
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82-
--------
DOCUMENTS INDEX
DOCUMENTS DESCRIPTION
---------- ------------------------------------------------------- -----------
1. Press Release of February 20, 2003: AEterna Reports
Financial Results for 2002
---------- ------------------------------------------------------- -----------
[AETERNA LOGO OMITTED]
PRESS RELEASE
FOR IMMEDIATE RELEASE
AETERNA REPORTS FINANCIAL RESULTS FOR 2002
Year marked by record sales and net earnings
for its subsidiary Atrium and acquisition of Zentaris AG
ALL FIGURES ARE EXPRESSED IN CANADIAN DOLLARS
QUEBEC CITY, CANADA, FEBRUARY 20, 2003 - AEterna Laboratories Inc. (TSX: AEL,
NASDAQ: AELA) reported record revenues of $101 million for the year ended
December 31, 2002, and a net loss of $25.8 million, or $0.67 per share, compared
to revenues of $44 million and a net loss of $3.5 million or $0.11 per share,
for the same period in 2001. The consolidated EBITDA (before non-controlling
interest) of its subsidiary Atrium increased 84%, from $6.9 million to $12.7
million for 2002. Consolidated net earnings of Atrium increased by 48%, reaching
$6.6 million compared to $4.5 million, for the same period last year. 2002
highlights include AEterna's acquisition of German biopharmaceutical Zentaris AG
for $85 million, a strategic alliance with Australian Mayne Pharma for the
commercialization of Neovastat, and a $57 million private placement.
ATRIUM BIOTECHNOLOGIES SELECTED FINANCIAL INFORMATION
(in thousands of Canadian dollars) 12 months ended 3 months ended
Dec. 31 Dec. 31
---------------------- ----------------------
2002 2001 2002 2001
---------------------- ----------------------
$ $ % $ $ %
Sales 100.9 43.8 130 27.7 20.2 37
EBITDA (before non-controlling interest) 12.7 6.9 84 3.2 2.0 61
Net earnings 6.6 4.5 48 1.6 1.1 37
"In 2002, we surpassed our stated expectations and met our strategic goals,"
said Gilles Gagnon, President and CEO at AEterna. "The recent acquisition of
Zentaris brings added value to our shareholders, providing the Company with an
extensive pipeline of 11 new products in high potential markets in oncology and
endocrinology, an important network of eight new pharmaceutical partners
worldwide, and a self-funded unit managed by high level pharmaceutical experts.
Neovastat, our lead antiangiogenic compound, is our top priority in oncology for
2003. Positive results of our Phase III trial in renal cell carcinoma with
Neovastat could enable AEterna to open this new class of drugs for the treatment
of kidney cancer".
Revenues for 2002 were generated by Atrium whose sales increased by 130% in
comparison to 2001. This increase is largely attributable to the acquisition, in
July 2001, of the French subsidiary, Unipex. On a proforma basis, Atrium would
have registered an
increase of 36%, taking into account the sales of Unipex for the twelve-month
period in 2001. Atrium fourth quarter sales rose $7.5 million, reaching $27.7
million compared to $20.2 million for the same period last year, an increase of
37%. This continued growth reflects the successful integration of Unipex and ADF
Chimie, as well as the focused sales strategy.
AEterna's R&D investments increased to $26.1 million in 2002, in line with
targeted figures, compared to $22.7 million in 2001. This increase allowed the
Phase III pivotal clinical trials for the treatment of lung and kidney cancer to
continue as planned.
During the fourth quarter, AEterna's R&D investments amounted to $7.8 million,
an increase of $1.6 million compared to the same period last year. The follow-up
of patients enrolled in these trials, as well as the costs incurred for the
preparation of Neovastat's Basic International Registration dossier, are
principally responsible for the increase in R&D investments.
AEterna recorded a net loss of $8 million, or $0.20 per share, in the fourth
quarter, compared to a net loss of $2.8 million or $0.08 per share for the same
period last year. This increased loss is mainly due to future income tax
recovery recorded during the last quarter of 2001.
Net loss for the current year was $25.8 million or $0.67 per share in comparison
with $3.5 million or $0.11 per share in 2001. This increase of $22.3 million is
due mostly to future income tax recovery and gain on dilution recorded in 2001,
amounting to $18.9 million, while the balance of $3.4 million results
principally from the increase of R&D investments net from related grants.
As of December 31, 2002, the Company's consolidated cash and short-term
investments position was $81.5 million. Of that amount, $43 million was used in
January 2003 for the acquisition of Zentaris, leaving AEterna with a
consolidated cash position of $38.5 million at the beginning of the current
year.
"With $38.5 million in cash and short-term investments, at the beginning of the
current year, we continue to have a solid financial position, especially when
considering the fast growth of Atrium, Zentaris' self-funded drug development
program, as well as Neovastat's continued controlled burn rate and high market
potential," concluded Dennis Turpin, Vice President and Chief Financial Officer
at AEterna.
2002 HIGHLIGHTS
April: $57 million private placement in AEterna for the acquisition
program, the development of Neovastat Phase III trials in lung
and kidney cancer, as well as general corporate purposes
May: Atrium acquires French company ADF Chimie S/A, a distributor of
active and specialty ingredients to some 50 clients in the French
cosmetics industry, including L'Oreal, LVMH and Chanel
October: AEterna signs strategic partnership agreement with Australia's
Mayne Pharma, for marketing Neovastat in Canada, Mexico and
Australia
FDA grants Neovastat Orphan-drug Status for the treatment of
renal cell carcinoma, a form of kidney cancer
December: AEterna acquires German biopharmaceutical Zentaris AG for $85
million. The transaction provides AEterna with a combined
pipeline of 12 products, focusing on oncology and endocrinology
SCIENTIFIC ARTICLES
During 2002, six scientific articles on Neovastat were published in peer review
publications, namely on its multiple mechanisms of action and Phase I/II trial
results in lung and kidney cancer. Four others are currently in press. Through
the years, hundreds of articles have also been published in influential peer
reviews on Zentaris' scientific and clinical research activities.
PATENTS
In 2002, AEterna obtained two additional patents from the United States Patent
and Trademark Organization for broader coverage of Neovastat's manufacturing
process as well as a composition including administration of Neovastat in
combination with an anticancer agent. Furthermore, two patents were validated by
the European Patent Bureau that cover Neovastat and its manufacturing process.
AEterna now has nine American patents for Neovastat and five others are pending
approval.
With the recent acquisition of Zentaris, the combined entities account for over
70 families of patents at the international level.
ABOUT AETERNA LABORATORIES INC.
AEterna is a biopharmaceutical company focused on the development of novel
therapeutic treatments, mainly in oncology and endocrinology. The product
pipeline includes 12 products ranging from preclinical stage up to
commercialization. AEterna has strategic worldwide partners such as Access
Oncology, Ardana Bioscience, Baxter Healthcare S.A., Grupo Ferrer, Hainan
Tianwang International Pharmaceutical, Mayne Group, Medac GmbH, Nippon Kayaku,
Serono International S.A., Shionogi & Co., Ltd. and Solvay Pharmaceuticals B.V.
AEterna owns 100% of the biopharmaceutical company, Zentaris AG, based in
Frankfurt, Germany.
AEterna also owns 61.8% of Atrium Biotechnologies Inc., which develops and
markets nutritional supplements, as well as active ingredients and fine
chemicals intended for the cosmetics, nutritional, fine chemical and
pharmaceutical industries. Atrium markets over 500 products in 20 countries to
industry leaders such as Estee Lauder, L'Oreal, Clarins, Chanel, Aventis,
SanofiSynthelabo and Nestle.
AEterna and its entities have 270 employees in Canada and Europe.
AEterna shares are listed on the Toronto Stock Exchange (AEL) and the NASDAQ
National Market (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 -
CANADA
Media Relations: Investor Relations:
Paul Burroughs Jacques Raymond
Tel.: (418) 652-8525 ext. 406 Tel.: (418) 652-8525 ext. 360
Cell.: (418) 573-8982 Cell.: (514) 703-5654
Fax: (418) 577-7700 Fax: (418) 577-7700
E-mail: paul.burroughs@aeterna.com E-mail: jacques.raymond@aeterna.com
USA EUROPE
The Investor Relations Group Investor relations
Lisa Lindberg Matthias Seeber
Tel.: (212) 825-3210 Tel.: 011 49 69 4 26 02 34 25
Fax: (212) 825-3229 Fax: 011 49 69 4 26 02 34 44
E-mail: TheProTeam@aol.com E-mail: matthias.seeber@zentaris.de
ATTACHED: FINANCIAL SUMMARY
AETERNA LABORATORIES INC. (TSX : AEL, NASDAQ : AELA)
FINANCIAL SUMMARY
(in thousands of Canadian dollars, except per share data)
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31 DECEMBER 31
------------------------------------------------------------------------
CONSOLIDATED RESULTS 2002 2001 2002 2001
Unaudited $ $ $ $
-----------------------------------------------------------------------------------------------------------------------------------
Revenues 28,008 20,204 101,204 43,777
------------------------------------------------------------------------
Cost of sales 21,093 15,350 77,443 29,950
Selling, general and administrative 5,507 4,763 17,778 13,040
Research and development 7,782 6,209 26,062 22,681
Research tax credits and grants (513) (630) (1,933) (5,989)
Depreciation and amortization 742 615 2,421 1,850
------------------------------------------------------------------------
34,611 26,307 121,771 61,532
------------------------------------------------------------------------
Operating loss (6,603) (6,103) (20,567) (17,755)
Interest income 973 1,065 2,903 3,763
Interest expense (101) (254) (527) (853)
------------------------------------------------------------------------
LOSS BEFORE THE FOLLOWING ITEMS (5,731) (5,292) (18,191) (14,845)
Current income taxes (792) (640) (2,565) (922)
Future income taxes (547) 5,674 (1,860) 5,674
Non-controlling interest (940) (2,499) (3,591) (3,600)
------------------------------------------------------------------------
LOSS BEFORE THE GAIN ON DILUTION (8,010) (2,757) (26,207) (13,693)
Gain on dilution - - 425 10,224
------------------------------------------------------------------------
NET LOSS FOR THE PERIOD (8,010) (2,757) (25,782) (3,469)
------------------------------------------------------------------------
------------------------------------------------------------------------
Basic and diluted loss before the
gain on dilution per share (0.20) (0.08) (0.68) (0.44)
------------------------------------------------------------------------
------------------------------------------------------------------------
Basic and diluted net loss per share (0.20) (0.08) (0.67) (0.11)
------------------------------------------------------------------------
------------------------------------------------------------------------
Weighted average number of shares
- Basic and diluted 40,582,591 32,505,873 38,584,537 30,968,710
------------------------------------------------------------------------
------------------------------------------------------------------------
DECEMBER 31 DECEMBER 31
------------------------------------
CONSOLIDATED BALANCE SHEETS 2002 2001
$ $
-----------------------------------------------------------------------------------------------------------------------------------
Cash and short-term investments 81,534 54,064
Working capital 44,200 61,464
Total assets 306,831 134,352
Long-term debt 9,969 10,401
Non-controlling interest 24,677 18,339
Shareholders' equity 110,336 78,619
Deficit 44,864 19,082
STOCK EXCHANGE INFORMATION AS OF DECEMBER 31, 2002
Issued and outstanding shares 40.7 MILLION
Fully diluted shares 40.8 MILLION
Market capitalization $241 MILLION
Average daily transactions 37,000 SHARES
(12 months)
ATRIUM BIOTECHNOLOGIES INC.
FINANCIAL SUMMARY
(in thousands of Canadian dollars)
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31 DECEMBER 31
------------------------------------------------------------------------
CONSOLIDATED RESULTS 2002 2001 2002 2001
Unaudited $ $ $ $
-----------------------------------------------------------------------------------------------------------------------------------
Revenues 27,693 20,204 100,889 43,777
------------------------------------------------------------------------
Cost of sales 21,093 15,350 77,443 29,950
Selling and administrative 3,134 2,797 10,241 6,498
Research and development 278 146 792 618
Research tax credits and grants (029) (085) (334) (215)
------------------------------------------------------------------------
24,476 18,208 88,142 36,851
------------------------------------------------------------------------
EBITDA 3,217 1,996 12,747 6,926
Depreciation and amortization (112) (204) (422) (413)
Interest income 240 424 390 1,299
Interest expense (101) (254) (527) (416)
------------------------------------------------------------------------
EARNINGS BEFORE THE FOLLOWING ITEMS 3,244 1,962 12,188 7,396
Current income taxes (792) (335) (2,565) (922)
Future income taxes (547) (406) (1,860) (1,760)
Non-controlling interest (343) (080) (1,127) (223)
------------------------------------------------------------------------
NET EARNINGS FOR THE PERIOD 1,562 1,141 6,636 4,491
------------------------------------------------------------------------
------------------------------------------------------------------------
DECEMBER 31 DECEMBER 31
------------------------------------
CONSOLIDATED BALANCE SHEETS 2002 2001
$ $
-----------------------------------------------------------------------------------------------------------------------------------
Cash and short-term investments 14,259 12,369
Working capital 28,975 19,123
Total assets 86,333 70,260
Long-term debt 5,969 6,401
Non-controlling interest 6,170 4,220
Shareholders' equity 48,395 38,831
Retained earnings 14,156 7,521
SIGNATURE
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 LABORATORIES INC.
DATE: FEBRUARY 20, 2003 By: /s/ CLAUDE VADBONCOEUR
--------------------- -----------------------------------
Claude Vadboncoeur
Vice President, Legal Affairs and
Corporate Secretary