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 October 2002
AETERNA LABORATORIES INC.
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(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
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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-___
EXHIBIT INDEX
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EXHIBIT DESCRIPTION
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1. Press Release of October 22, 2002 -AEterna Reports Third
Quarter Results.
[LOG AETERNA HERE]
PRESS RELEASE
FOR IMMEDIATE RELEASE
AETERNA REPORTS THIRD QUARTER RESULTS
Atrium - Sales Increase by 35% and Net Earnings by 37%
AEterna - New Pharmaceutical Partnership
ALL FIGURES ARE EXPRESSED IN CANADIAN DOLLARS
QUEBEC CITY, QUEBEC, OCTOBER 22, 2002 -- AEterna Laboratories Inc. (TSX: AEL;
Nasdaq: AELA) reported revenues for the third quarter ending September 30, 2002,
of $24.4 million and a net loss before a gain on dilution of $6.6 million, or
$0.16 per share, compared to revenues of $18.1 million, and a net loss before a
gain on dilution of $5 million, or $0.16 per share, for the same period in 2001.
Consolidated net earnings of its subsidiary Atrium increased by 37%, reaching
$1.61 million compared to $1.17 million for the same period last year. AEterna
also signed an agreement with Australian multinational Mayne Group for the
eventual commercialization of Neovastat in Australia, New-Zealand, Canada and
Mexico.
"Both AEterna and Atrium met our growth strategy goals for this quarter",
commented Dr. Eric Dupont, Chairman and CEO at AEterna. "This performance
confirms that our two entities are well positioned to pursue expansion based on
both internal growth and acquisitions."
Gilles Gagnon, AEterna's President and Chief Operating Officer, added, "What we
have achieved during these past few months allows us to accelerate Neovastat's
development with our strategic partners. Conclusive results of our Phase III
trial with Neovastat in kidney cancer could enable us to become the first
company to bring an angiogenesis inhibitor to the market in cancer."
AEterna's investments in R&D during the second quarter reached $8.3 million
compared to $7.2 million during the same period last year. This increase in R&D
investments allowed AEterna to actively carry out its clinical program in
Phase III studies in lung and kidney cancer.
As of September 30, 2002, the Company's cash assets amounted to $88.7 million,
compared to $54.1 million at December 31, 2001. According to Dennis Turpin,
AEterna's Vice President and Chief Financial Officer, "Our solid financial
position allows the Company sufficient funds to pursue its activities for the
next three years."
NINE MONTHS RESULTS
For the nine-month period ended September 30, 2002, Atrium registered
consolidated revenues of $73.2 million compared to $23.6 for the same period
last year. This increase is mainly due to sales generated by Unipex, a French
company acquired by Atrium in July 2001. Furthermore, consolidated net earnings
reached $5.1 million compared to $3.4 million for the same period in 2001, an
increase of more than 50%.
Luc Dupont, CEO and Vice Chairman at Atrium said, "This sustained growth is due
to the successful integration of Unipex into our Company during the last year
and by the quality of our products and business network which enabled us to gain
additional market share."
Investments in R&D increased to $23.4 million compared to $21 million for the
same period last year. The Company registered a loss before a gain on dilution
of $18.2 million, or $0.47 per share, for the first nine months of 2002,
compared to a loss before gain on dilution of $10.9 million, or $0.36 per share,
for the same period in 2001.
AETERNA MILESTONES
Strategic Alliances
|X| The signing of a strategic alliance with Australian multinational
Mayne Group allows AEterna to extend its coverage to 45% of the
worldwide oncology market and reach the $50 million mark in milestone
payments
|X| The Radiation Therapy Oncology Group (RTOG) joins the Community
Clinical Oncology Program (CCOP) sites sponsored by the National
Cancer Institute (NCI) for patient enrollment and conduct of the
Neovastat Phase III clinical trial in non-small cell lung cancer
Appointment
|X| Claude Cardinal is appointed Vice President, Technical Operations. He
is responsible for activities related to the technical development and
manufacture of drugs according to pharmaceutical industry standards
Scientific Articles
|X| Results of a Phase II study in kidney cancer with Neovastat are
published in the European scientific review ANNALS OF ONCOLOGY (Batist
G., Champagne P., Croteau D., Levinton C., Hariton C., Escudier B. and
Dupont E. ANN ONCOL 13 (8):1259-63, 2002)
|X| Article on Neovastat's capacity to induce apoptosis of endothelial
cells is published in MOLECULAR CANCER THERAPEUTICS (Boivin D.,
Gendron S., Beaulieu E., Gingras D., Beliveau R. MOL CANCER THERAP 1:
795-802, 2002)
|X| Results of a Phase I/II study with Neovastat in plaque psoriasis are
published in the JOURNAL OF AMERICAN ACADEMY OF DERMATOLOGY (Daniel N.
Sauder, Joel DeKoven, Pierre Champagne, Daniel Croteau and Eric
Dupont. J AM ACAD DERMATOL 2002;47:535-41)
ATRIUM MILESTONES
Significant increase in sales and earnings
|X| 35% increase in sales compared to the same quarter in 2001 and a 210%
increase compared to the same nine-month period last year
|X| 37% increase in consolidated net earnings compared to the same quarter
in 2001 and a 50% increase for the same nine-month period in 2001
Investment
|X| $2 million investment by Luc Dupont, CEO and Vice Chairman of the
Board at Atrium, for a 2.94% stake in Atrium
Appointment
|X| Appointment of Yves Milord, President and COO of SGF Soquia, to
Atrium's Board of Directors. Mr. Milord has more than 25 years
experience in business management and development. He occupied key
management positions notably as Executive Vice President at
Metro-Richelieu and as Vice President and General Manager of Provigo
ABOUT AETERNA AND NEOVASTAT
AEterna is a Canadian biopharmaceutical company and a frontrunner in the
development of angiogenesis inhibitors, primarily in oncology.
Neovastat is currently undergoing two Phase III clinical trials for the
treatment of lung and kidney cancer and one Phase II trial for the treatment of
multiple myeloma, a form of blood cancer. These trials are currently being held
in more than 120 clinical institutions in Canada, the U.S. and in several
European countries.
Atrium Biotechnologies Inc., a 61.8% owned subsidiary of AEterna Laboratories,
develops and markets nutritional supplements as well as active ingredients and
fine chemicals intended for the cosmetics, nutritional, fine chemicals and
pharmaceutical industries. The Company markets over 500 products in 20 countries
to industry leaders such as Estee Lauder, L'Oreal, Clarins, Chanel, Aventis,
SanofiSynthelabo and Nestle.
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
Fax: (418) 577-7700 Fax: (418) 577-7700
E-mail: paul.burroughs@aeterna.com E-mail: jacques.raymond@aeterna.com
USA
The Investor Relations Group
Lisa Lindberg
Tel.: (212) 825-3210
Fax: (212) 825-3229
E-mail: TheProTeam@aol.com
Attachment: Financial summary
AETERNA LABORATORIES INC. (NASDAQ: AELA; TSX: AEL)
FINANCIAL SUMMARY
(in Canadian dollars)
Three months ended on Nine months ended on
September 30 September 30
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CONSOLIDATED RESULTS 2002 2001 2002 2001
Unaudited $ $ $ $
---- ---- ---- ----
Revenues 24,407,000 18,138,000 73,196,000 23,573,000
---------- ---------- ---------- ----------
Cost of sales 18,864,000 13,745,000 56,349,000 14,600,000
Selling and administrative 2,434,000 2,007,000 7,108,000 3,701,000
Research and development 8,312,000 7,157,000 23,444,000 21,047,000
Research tax credits and grants (320,000) (789,000) (1,420,000) (5,359,000)
Depreciation and amortization 646,000 473,000 1,679,000 1,235,000
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29,936,000 22,593,000 87,160,000 35,224,000
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Operating Loss (5,529,000) (4,455,000) (13,964,000) (11,651,000)
Interest income 1,021,000 641,000 2,345,000 2,697,000
Interest expense (322,000) (162,000) (841,000) (599,000)
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LOSS BEFORE THE FOLLOWING ITEMS (4,830,000) (3,976,000) (12,460,000) (9,553,000)
Current income taxes (808,000) (282,000) (1,773,000) (282,000)
Future income taxes (140,000) - (1,313,000) -
Non-controlling interest (869,000) (750,000) (2,651,000) (1,101,000)
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LOSS BEFORE THE GAIN ON DILUTION (6,647,000) (5,008,000) (18,197,000) (10,936,000)
Gain on dilution 425,000 - 425,000 10,224,000
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NET LOSS FOR THE PERIOD (6,222,000) (5,008,000) (17,772,000) (712,000)
========== ========== ========== ==========
Basic and diluted loss before
the gain on dilution per share (0.16) (0.16) (0.47) (0.36)
========== ========== ========== ==========
Basic and diluted net loss
per share (0.15) (0.16) (0.46) (0.02)
========== ========== ========== ==========
Weighted average number
of shares 40,452,519 30,978,986 38,552,019 30,454,781
========== ========== ========== ==========
September 30 December 31
CONSOLIDATED BALANCE SHEETS 2002 2001
$ $
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Cash and short-term investments 88,689,000 54,064,000
Working capital 101,857,000 61,464,000
Total assets 182,988,000 134,352,000
Long-term debt 12,007,000 10,401,000
Non-controlling interest 23,245,000 18,339,000
Shareholders' equity 116,656,000 78,619,000
Deficit 36,855,000 19,082,000
STOCK EXCHANGE INFORMATION AT SEPTEMBER 30, 2002
Issued and outstanding shares 40,5 million
Fully diluted shares 40,5 million
Market capitalization $174 million
Average daily transactions 37,000 shares
(12 months)
ATRIUM BIOTECHNOLOGIES INC.
FINANCIAL SUMMARY
(in Canadian dollars)
Three months ended on Nine months ended on
September 30 September 30
--------------------- ---------------------
CONSOLIDATED RESULTS 2002 2001 2002 2001
Unaudited $ $ $ $
---- ---- ---- ----
Revenues 24,407,000 18,138,000 73,196,000 23,573,000
---------- ---------- ---------- ----------
Cost of sales 18,864,000 13,745,000 56,350,000 14,600,000
Selling and administrative 2,434,000 2,007,000 7,108,000 3,701,000
Research and development 166,000 161,000 514,000 472,000
Research tax credits and grants (20,000) (23,000) (304,000) (130,000)
Depreciation and amortization 111,000 123,000 310,000 209,000
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21,555,000 16,013,000 63,978,000 18,852,000
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Operating income 2,852,000 2,125,000 9,218,000 4,721,000
Interest income 295,000 133,000 566,000 875,000
Interest expense (322,000) (162,000) (841,000) (162,000)
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EARNINGS BEFORE THE
FOLLOWING ITEMS 2,825,000 2,096,000 8,943,000 5,434,000
Current income taxes (808,000) (587,000) (1,773,000) (587,000)
Future income taxes (140,000) (189,000) (1,313,000) (1,354,000)
Non-controlling interest (258,000) (143,000) (784,000) (143,000)
---------- ---------- ---------- ----------
NET EARNINGS FOR THE PERIOD 1,619,000 1,177,000 5,073,000 3,350,000
========== ========== ========== ==========
September 30 December 31
CONSOLIDATED BALANCE SHEETS 2002 2001
$ $
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Cash and short-term investments 19,250,000 12,369,000
Working capital 28,209,000 19,123,000
Total assets 86,782,000 70,260,000
Long-term debt 8,007,000 6,401,000
Non-controlling interest 5,490,000 4,220,000
Shareholders' equity 46,430,000 38,831,000
Retained earnings 12,594,000 7,521,000
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 LABORATORIES INC.
Date: October 22, 2002 By: /s/Claude Vadboncoeur
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Claude Vadboncoeur
Vice President, Legal Affairs and
Corporate Secretary