LOGO OF
AETERNA LABORATORIES INC.
PRESS RELEASE
FOR IMMEDIATE RELEASE
AETERNA LABORATORIES REPORTS FIRST QUARTER RESULTs
QUEBEC CITY, QUEBEC, APRIL 18, 2001 - AEterna Laboratories Inc. (NASDAQ: AELA,
TSE: AEL) reported today its results for the three-month period ended March 31,
2001.
Sales for Atrium Biotechnologies Inc., a subsidiary of AEterna, were up by more
than 35% during this first quarter, reaching $2.8 million* compared to
$2 million for the same period last year. This gain is mainly due to increased
sales in the United States and in Asia as well as revenues generated by the
acquisition of a line of nutrition supplement products in the United States last
October.
AEterna's Research and Development expenses totaled $7.2 million in comparison
to $5.5 million during the same quarter of 2000. This increase results from
additional investments in the development of its lead product, Neovastat, for
current pivotal Phase III clinical trials in lung and kidney cancer and for the
current pivotal Phase II trial in multiple myeloma, a form of blood cancer.
During the first quarter, the Company registered a net loss of $3.6 million, or
$0.12 per share, compared to an adjusted net loss of $2.4 million (before gain
on dilution) or $0.08 per share for the quarter ended March 31, 2000. Major
investments in the ongoing late stage clinical program over the last twelve
months account for most of the net loss increase.
AEterna maintains a solid financial situation with more than $63.8 million in
cash and short-term investments as of March 31, 2001. The Company has access to
an additional $17 million through the Technology Partnerships Canada program and
has a $5 million sponsorship from the U.S. National Cancer Institute for its
pivotal Phase III clinical trial in non-small-cell lung cancer.
"Our sound financial management enables us to have access to sufficient funds to
complete our key clinical studies in kidney cancer and multiple myeloma," said
Dennis Turpin, Vice President and Chief Financial Officer at AEterna.
"This has been a landmark quarter in AEterna's ten year history at the
scientific, clinical and corporate levels," said Dr. Eric Dupont, President and
Chief Executive Officer at AEterna. "Phase I/II clinical results in renal cell
carcinoma showed a statistically significant two-fold increase in patient
survival time, while research data proving Neovastat's capacity to induce
apoptosis of endothelial cells, further emphasized its position as a unique
product with multiple mechanisms of action. Furthermore, by carefully following
our growth strategy, we successfully concluded our first two strategic alliances
with pharmaceutical companies for the European market. All these elements bring
us that much closer to our ultimate objective, which has always been and still
is, to be among
the first in this new therapeutic class of drugs in bringing an
angiogenesis inhibitor to market, " concluded Dr. Dupont.
OVERVIEW OF FIRST QUARTER ACTIVITIES:
CLINICAL RESULTS
o Clinical data from a Phase I/II clinical trial in patients with
metastatic renal cell carcinoma (kidney cancer) refractory to
standard treatments, showed a statistically significant two-fold
increase (7.1 months to 16.3 months) in median survival time in
patients who were administered a higher dose of Neovastat. These
results were presented at the recent 92nd Annual Meeting of the
American Association for Cancer Research (AACR).
SCIENTIFIC DATA
o Other new research results presented at the AACR meeting
demonstrated a third mechanism of action of Neovastat which
induces apoptosis (programmed cell death) of endothelial cells.
These results confirmed Neovastat's position as a unique product
with multiple mechanisms of action.
SCIENTIFIC PEER REVIEW
o An article by Doctors D. Gingras, N. Mousseau, A. Renaud,
E. Beaulieu, Z. Kachra and R. Beliveau pertaining to
Neovastat's MMP inhibition activity, was published in Anti Cancer
Research.
CORPORATE AFFAIRS
o AEterna signed its first two strategic alliances for the European
market with Grupo Ferrer Internacional, S.A., from Spain, and
Medac GmbH from Hamburg, the German oncology business unit of the
multinational Schering AG.
INTELLECTUAL PROPERTY
o United States Patent and Trademark Office granted AEterna another
key patent that covers a new process involved in the isolation of
bioactive components from cartilage, thus broadening the
protection and exclusivity of Neovastat. To this day, AEterna has
filed 8 patents of which 5 have been granted.
CORPORATE AND SCIENTIFIC APPOINTMENTS
o In keeping with its international growth strategy, AEterna
appointed Ms. Stormy Byorum and Mr. Pierre MacDonald to
AEterna's Board of Directors, while Mr. Pierre Laurin was
named Board of Directors President of its subsidiary, Atrium
Biotechnologies Inc. The Company also announced the appointment
of Mr. Gilles Gagnon as AEterna's new Vice President and Chief
Operating Officer.
o AEterna appointed oncologists, Dr. Janice Dutcher, MD and
Dr. Kenneth C. Anderson, MD, both from the United States, and
Dr. Francois Berger, MD, PhD, from France, to its Scientific
Advisory Board, reflecting the Company's clinical strategy to
focus on oncology.
ABOUT AETERNA AND NEOVASTAT/AE-941
AEterna Laboratories Inc. is a Canadian biopharmaceutical company and a
frontrunner in the field of antiangiogenesis to treat a variety of conditions.
Its lead product, Neovastat, is an angiogenesis
inhibitor being investigated in three major therapeutic areas: oncology,
dermatology and ophthalmology.
Neovastat is currently investigated in two Phase III pivotal clinical trials for
the treatment of lung and kidney cancer as well as in a Phase II pivotal trial
for the treatment of multiple myeloma, a form of blood cancer. These current
trials, which have been designed according to discussions with the Health
Authorities, are held in more than 125 clinical institutions in Canada, the U.S
and several European countries.
AEterna is listed on the Toronto Stock Exchange under the symbol AEL and on
Nasdaq under the symbol AELA.
News releases and additional information 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.
* All amounts are in Canadian dollars (CAN$ 1.00 = US$ 0.65)
-30-
FOR MORE INFORMATION, CONTACT:
CANADA USA GERMANY
Paul Burroughs Investor and Media Relations: Investor Relations and Media
Director of Communications Ms. Lisa Lindberg Ms. Ursula Fessele
AEterna Laboratories Inc. The Investor Relations Group Inc. Value Relations IR Services
Tel.: 418-652-8525, ext. 406 Tel.: 212-736-2650 Tel.: 49-6196-8800-218
Fax: 418-577-7700 Fax: 212-736-2610 Fax: 49-6196-8800-447
E-mail: paul.burroughs@aeterna.com E-mail: TheProTeam@aol.com E-mail: u.fessele@vrir.de
Attached: Financial Summary
AETERNA LABORATORIES INC. ( TSE: AEL, NASDAQ: AELA)
FINANCIAL SUMMARY
(EXPRESSED IN CANADIAN DOLLARS / CAN$ 1 = US$ 0.65)
CONSOLIDATED RESULTS 2001 2000
Unaudited $ $
-------------------- ---- ----
Sales 2,767,000 2,015,000
Operating Expenses (1,277,000) (753,000)
---------- ---------
Earnings before the following 1,490,000 1,262,000
Research and development 7,214,000 5,475,000
Research tax credits and grants (2,042,000) (1,638,000)
Depreciation and amortization 376,000 319,000
---------- ---------
Loss before other items (4,058,000) (2,894,000)
Interest income 1,075,000 746,000
Gain on dilution of investment --- 7,194,000
Non-controlling interest (611,000) (272,000)
---------- ---------
Net earnings (loss) for the period (3,594,000) 4,774,000
---------- ---------
Net earnings (loss) per share
Basic (0.12) 0.17
Fully diluted (0.12) 0.16
CONSOLIDATED BALANCE SHEETS 2001 2000
Unaudited $ $
--------------------------- ---- ----
Cash position 62,213,000 68,649,000
Working capital 68,365,000 70,831,000
Total assets 92,684,000 96,244,000
Long-term debt 4,753,000 4,753,000
Non-controlling interest 10,232,000 9,621,000
Shareholders' equity 71,890,000 75,045,000
Deficit 8,557,000 4,963,000
STOCK EXCHANGE INFORMATION AS OF MARCH 31, 2001
Issued and outstanding shares 30.2 MILLION
Fully diluted shares 31.3 MILLION
Market capitalization $265 MILLION
Average daily transactions (3 months) 47,373 SHARES