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 May 2006
AETERNA ZENTARIS INC.
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
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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
DOCUMENTS DESCRIPTION
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1. Press release dated May 3, 2006: AEterna Zentaris Reports 2006 First
Quarter Financial and Operating Results
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[AETERNA ZENTARIS LOGO]
AETERNA ZENTARIS INC.
1405 DU PARC-TECHNOLOGIES BLVD.
QUEBEC (QUEBEC) CANADA G1P 4P5
T 418 652-8525 F 418 652-0861
www.aeternazentaris.com
PRESS RELEASE
For Immediate Release
AETERNA ZENTARIS REPORTS 2006 FIRST QUARTER FINANCIAL AND OPERATING RESULTS
COMPANY REITERATES COMMITMENT TO ADVANCING PIPELINE
ALL AMOUNTS ARE IN U.S. DOLLARS
QUEBEC CITY, CANADA, MAY 3, 2006 - AEterna Zentaris Inc. (TSX: AEZ; NASDAQ:
AEZS) today reported financial and operating results for the first quarter ended
March 31, 2006. Consolidated revenues for the first quarter 2006 were $84.5
million, an increase of 36.5% compared to total revenues of $61.9 million for
the same period in 2005. Consolidated R&D expenses net of tax credits amounted
to $6.9 million for the first quarter of 2006 compared to $6.4 million for the
same period in 2005. The Company's consolidated net loss was $2.6 million for
the first quarter of 2006, or $0.05 per share, compared to net earnings of $0.1
million for the same period in 2005. This $2.7 million variation is mainly
attributable to a decrease in license revenues in the Company's
Biopharmaceutical segment, increased R&D investments and interest expense,
partly offset by its 48.29%-owned subsidiary Atrium Biotechnologies' net
earnings. The consolidated cash and short-term investments were $46.9 million on
March 31, 2006.
The Company highlighted first quarter 2006 advancements with respect to its
product development pipeline, Corporate Affairs and recent events:
PRODUCT DEVELOPMENT PIPELINE ADVANCEMENTS
>> Initiation of Phase 2, Multi-Center study of perifosine for the treatment
of refractory multiple myeloma;
>> Initiation of Phase 2, Multi-Center study of perifosine for the treatment
of refractory leukemia;
>> Disclosure of preclinical results on various drug candidates at the
American Association for Cancer Research (AACR) Meeting in Washington,
including tubulin inhibitors, signal transduction inhibitors and cytotoxic
conjugates; and
>> Regained the exclusive worldwide (ex-Japan) rights for cetrorelix in benign
prostate hyperplasia.
CORPORATE AFFAIRS
>> The Solidarity Fund QFL and SGF Sante Inc. converted their term loans into
common shares;
>> Former Abbott Vice President, Gerald J. Martin appointed to AEterna
Zentaris Board.
RECENT EVENTS
>> Gained market approval for Cetrotide(R) (cetrorelix) in Japan for IN VITRO
fertilization.
Gilles Gagnon, AEterna Zentaris' President and Chief Executive Officer said, "We
progressed on multiple fronts throughout the quarter as we strengthened our
financial position and continued to advance our development pipeline. The
preclinical results on different anti-cancer agents presented at the American
Association for Clinical Research (AACR) meeting in Washington, are indicative
of the depth of our pipeline and its potential to yield novel products to treat
cancer. Furthermore, we were very pleased to have regained the worldwide,
ex-Japan rights for cetrorelix in BPH, and are presently in the process of
designing a protocol to conduct a late-stage study with cetrorelix in BPH in the
United States, upon discussions with the United States Food and Drug
Administration. We believe we will initiate our late-stage development program
this year, in line with our strategy. Finally, we continue to see progress with
our lead signal transduction inhibitor, perifosine as two Phase 2 trials were
initiated this quarter with our partner, Keryx, in leukemia and multiple
myeloma. We are committed to driving our strategy forward as we aggressively
move our promising product candidates through our pipeline."
Dennis Turpin, Vice President and Chief Financial Officer of AEterna Zentaris,
commented: "We were very pleased with SGF and FTQ's decision to convert the
entirety of their convertible term loans into AEterna Zentaris common shares.
This conversion, along with Atrium's continued growth, further strengthened our
balance sheet in the first quarter. Furthermore, we will continue to see an
increase in our R&D investment in 2006, clearly reflecting our commitment to our
focused strategy to advance and expand our clinical-stage pipeline, in
particular, the oncology proprietary products while maintaining a solid
financial position."
APPOINTMENT TO COMPANY MANAGEMENT
Mario Paradis, CA, has been promoted from Senior Director, Finance and Corporate
Secretary to Vice President, Finance, Administration and Corporate Secretary.
Former Senior Manager at PricewaterhouseCoopers, within the Audit and Assurance
Group, Mr. Paradis joined AEterna Zentaris in 1999.
"Mario Paradis has been a great asset for our Company over the last seven
years," said Gilles Gagnon, President and Chief Executive Officer at AEterna
Zentaris. "In addition to his current financial and legal functions, he will be
in charge of overall administrative affairs of the Company and its
subsidiaries."
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CONFERENCE CALL INFORMATION
Management will be hosting a conference call for the investment community
beginning at 3:30 p.m. Eastern Time today, Wednesday, May 3, to discuss 2006
first quarter financial and operating results, followed by a question and answer
session.
To participate in the live conference call by telephone, please dial
514-807-8791, 416-644-3424 from Canada or 800-796-7558 from outside Canada.
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 a growing global biopharmaceutical company focused on
oncology and endocrine therapy with proven expertise in drug discovery,
development and commercialization.
AEterna Zentaris also owns 48.29% of the equity of Atrium Biotechnologies Inc.
(TSX: ATB.sv) and 64.7% of its voting rights. Atrium is a developer,
manufacturer and marketer of science-based products for the cosmetics,
pharmaceutical, chemical and nutritional industries.
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-
CONTACTS
MEDIA RELATIONS INVESTOR RELATIONS
Paul Burroughs Jenene Thomas
(418) 652-8525 ext. 406 (418) 655-6420 or (908) 996-3154
paul.burroughs@aeternazentaris.com jenene.thomas@aeternazentaris.com
ATTACHMENT: Financial summary
3
(IN THOUSANDS OF US DOLLARS, EXCEPT SHARE
AND PER SHARE DATA)
THREE-MONTH PERIODS
CONSOLIDATED RESULTS ENDED MARCH 31,
UNAUDITED 2006 2005
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$ $
REVENUES 84,477 61,865
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OPERATING EXPENSES
Cost of sales 57,196 37,163
Selling, general and administrative 13,567 9,935
R&D costs, net of tax credits and grants 6,901 6,446
Depreciation and amortization 2,381 1,818
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80,045 55,362
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EARNINGS FROM OPERATIONS 4,432 6,503
Interest income 420 306
Interest expense (3,223) (2,158)
Foreign exchange gain 212 208
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EARNINGS BEFORE THE FOLLOWING ITEMS 1,841 4,859
Current income taxes (1,996) (2,121)
Future income taxes 1,189 (1,097)
Loss on dilution of investments (54) -
Non-controlling interest (3,560) (1,523)
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NET EARNINGS (LOSS) FOR THE PERIOD (2,580) 118
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NET EARNINGS (LOSS) PER SHARE
Basic (0.05) -
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Diluted (0.05) -
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Weighted average number of shares
Basic 50,327,227 45,799,897
Diluted 50,864,878 46,238,901
Issued and outstanding shares 53,133,681 46,139,814
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BIOPHARMACEUTICAL SEGMENT - SELECTED FINANCIAL INFORMATION
(IN THOUSANDS OF US DOLLARS)
UNAUDITED
THREE-MONTH PERIODS ENDED MARCH 31,
2006 2005
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$ $
REVENUES
Sales and royalties 6,575 6,898
License fees 2,173 6,849
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8,748 13,747
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R&D EXPENSE, NET OF TAX CREDITS AND GRANTS 6,804 6,350
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EARNINGS (LOSS) FROM OPERATIONS (6,105) 135
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CASH FLOWS GENERATED (USED) BY OPERATING ACTIVITIES (3,524) 1,322
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CONSOLIDATED BALANCE SHEET As at March 31, As at December 31,
UNAUDITED 2006 2005
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$ $
Cash and short-term investments 46,917 52,705
Other current assets 112,177 108,998
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159,094 161,703
Long term assets 264,409 263,835
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Total assets 423,503 425,538
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Current liabilities 57,888 62,201
Long-term debt 105,954 135,743
Other long-term liabilities 52,773 53,532
Non-controlling interest 68,699 64,531
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285,314 316,007
Shareholders' equity 138,189 109,531
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Total liabilities and shareholders' equity 423,503 425,538
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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 ZENTARIS INC.
DATE: MAY 8, 2005 By: /s/ MARIO PARADIS
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Mario Paradis
Vice President, Finance, Administration
and Corporate Secretary