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 February 2005
AETERNA ZENTARIS INC.
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(Formerly named AEterna Laboratories 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 February 28, 2005 - AEterna Zentaris Reports 2004
Fourth Quarter and Full-Year Financial and Operating Results
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[AETERNA LOGO]
AETERNA ZENTARIS INC. 1405 du Parc-Technologique Blvd.
Quebec (Quebec) Canada G1P 4P5 T 418 652-8525 F 418 652-0881
www.aeternazentaris.com
PRESS RELEASE
For immediate release
AETERNA ZENTARIS REPORTS 2004 FOURTH QUARTER AND FULL-YEAR
FINANCIAL AND OPERATING RESULTS
ALL AMOUNTS ARE IN CANADIAN DOLLARS
o AEterna Zentaris full-year 2004 highlights:
>> Consolidated revenues increased by 40.4% to $233 million,
compared with $166.4 million in 2003;
>> Consolidated R&D expenses of $30.4 million, compared with $44.1
million in 2003;
>> Consolidated operating income of $17.2 million, compared with a
previous $14.3 million operating loss;
>> Consolidated net loss of $5.8 million, compared with a net loss
of $28.1 million in 2003;
>> Successful completion of a seven Phase II trial program of
cetrorelix in endometriosis, benign prostate hyperplasia and
uterine myoma.
o 61.1%-owned subsidiary, Atrium Biotechnologies, full-year 2004
highlights:
>> Consolidated sales of $177.3 million, an increase of 47%;
>> Consolidated EBIT of $26.1 million, an increase of 81%;
>> Consolidated net earnings of $13.2 million, an increase of 86%;
>> Acquisition of Pure Encapsulations in the United States.
QUEBEC CITY, CANADA, FEBRUARY 28, 2005 - AEterna Zentaris Inc. (TSX: AEZ;
NASDAQ: AEZS) today reported financial and operating results for the fourth
quarter and full year ended December 31, 2004. Consolidated revenues for the
fourth quarter 2004 were $53.5 million, an increase of 9.4% compared with total
revenues of $48.9 million for the same period in 2003. Consolidated R&D expenses
net of tax credits amounted to $7.1 million in the fourth quarter of 2004
compared with $12.3 million in the fourth quarter of 2003. Consolidated
operating income for the fourth quarter 2004 was $0.9 million, compared with an
operating loss of $6.4 million for the fourth quarter 2003. The Company's
consolidated net loss was $2.5 million for the fourth quarter of 2004, or $0.06
per share, compared with a net loss of $9.3 million, or $0.20 per share, for the
comparable period in 2003.
[AETERNA LOGO]
AEterna Zentaris Consolidated Annual 2004 Results
Consolidated revenues for the 12-month period ended December 31, 2004 increased
by 40.4% to $233 million, compared with $166.4 million for the same period in
2003. Consolidated R&D expenses net of tax credits amounted to $30.4 million in
2004, compared with $44.1 million in 2003. The Company reported a 2004
consolidated operating income of $17.2 million, compared with an operating loss
of $14.3 million for the comparable period in 2003. This increase in operating
income is mainly due to non-recurrent milestone payments related to cetrorelix
Phase II positive results, the realignment of the clinical development program
initiated in December 2003, as well as to Atrium's acquisition of Pure
Encapsulations in March 2004, combined with the achieved internal growth.
Consolidated net loss for 2004 was $5.8 million, or $0.13 per share, compared
with a net loss of $28.1 million, or $0.65 per share, in 2003.
AEterna Zentaris' financial performance for the year 2004 reflects continued
revenue growth from its development and marketing partners related to the
advancement of its extensive pharmaceutical product pipeline and from sales of
marketed compounds. It also reflects growth generated by its 61.1%-owned
subsidiary, Atrium Biotechnologies, through its proprietary product portfolio
and accretive acquisitions.
ATRIUM BIOTECHNOLOGIES FOURTH QUARTER 2004 RESULTS
During the fourth quarter of 2004, consolidated sales for Atrium were $43.5
million, an increase of 16% compared with $37.5 million in sales for the
comparable period in 2003. EBIT was $6.1 million during the quarter compared
with $3.8 million for the same period in 2003, representing a 61% increase. Net
earnings increased 50% to $2.7 million compared with net earnings of $1.8
million for the same period in 2003. These increases are mainly due to the
acquisition of Pure Encapsulations by Atrium, in March 2004, and growth in
Atrium's proprietary product portfolio.
ATRIUM CONSOLIDATED ANNUAL 2004 RESULTS
For the 12 months ended December 31, 2004, Atrium's sales reached $177.3 million
compared with $120.3 million for 2003, representing a 47% increase. EBIT
increased 81% to $26.1 million in 2004 from $14.4 million in 2003. Atrium
recorded net earnings of $13.2 million in 2004 compared with net earnings of
$7.1 million in 2003, representing an increase of 86%. These increases came
mainly from the acquisitions of Chimiray, Interchemical, Siricie and Pure
Encapsulations and from growth in Atrium's proprietary product portfolio.
"The year 2004 was marked by sustained growth and development," said Gilles
Gagnon, AEterna Zentaris' President and Chief Executive Officer. "We moved our
products through the pipeline as illustrated by the successful completion of our
seven Phase II trial program with cetrorelix. In 2005, we expect to expand by
advancing clinical development of cetrorelix in collaboration with our partners
Solvay and Shionogi/Nippon Kayaku, by furthering the development of other
compounds in oncology and endocrinology, and by continuing our in-licensing and
acquisition program. Finally, our subsidiary, Atrium, has again demonstrated its
ability to yield excellent year-over-year growth in all of its activity sectors
and we also look forward to see its continued growth in 2005," concluded Mr.
Gagnon.
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[AETERNA LOGO]
Dennis Turpin, Vice President and Chief Financial Officer of AEterna Zentaris,
added: "With the contribution of all of our operating segments, we achieved our
financial goal of becoming cash flow positive, on a consolidated basis, in 2004.
Our consolidated cash and short-term position remains strong at $58 million as
of December 31, 2004. In 2005, while maintaining a solid financial position, we
expect our R&D investment to increase, reflecting our commitment to expand and
advance our clinical-stage pipeline, in particular, the oncology proprietary
products. The Company is now well positioned to carry on its business plan."
APPOINTMENT TO AETERNA ZENTARIS BOARD
Eric Dupont, Chairman of AEterna Zentaris, is pleased to announce the
appointment of Mr. Jurgen Ernst to AEterna Zentaris' Board. Mr. Ernst, a
seasoned executive, has recently retired from his position of worldwide General
Manager, Pharmaceutical Sector of Solvay S.A. "We are pleased to welcome Mr.
Ernst who will bring to AEterna Zentaris more than 20 years of pharmaceutical
industry expertise mainly in the field of corporate development and
pharmaceutical product marketing," said Dr. Dupont.
CONFERENCE CALL INFORMATION
Management will be hosting a conference call for the investment community
beginning at 10:00 a.m. Eastern Time today, Monday, February 28, to discuss 2004
fourth quarter and full-year financial and operating results and answer
questions.
To participate in the live conference call by telephone, please dial
514-807-8791, 416-640-4127 from Canada or 800-814-4941 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
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Company's Web site for 30 days.
ABOUT AETERNA ZENTARIS INC.
AEterna Zentaris Inc. is an oncology and endocrine therapy focused
biopharmaceutical company with proven expertise in drug discovery, development
and commercialization. The Company's broad 20 product pipeline leverages five
different therapeutic approaches, including LHRH antagonists and signal
transduction inhibitors. The lead LHRH antagonist compound, cetrorelix, is
currently marketed for IN VITRO fertilization under the brand name Cetrotide(R),
and has successfully completed a broad Phase II program in endometriosis and
benign prostatic hyperplasia (BPH). The lead signal transduction inhibitor
compound, perifosine, is an orally-active AKT inhibitor that is in several Phase
II trials for multiple cancers.
AEterna Zentaris also owns 61.1% of Atrium Biotechnologies Inc., a leading
developer, manufacturer and marketer of value-added products for the cosmetics,
pharmaceutical, chemical and nutritional industries.
News releases and additional information about AEterna Zentaris are available on
its Web site at www.aeternazentaris.com.
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[AETERNA LOGO]
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.
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CONTACTS:
MEDIA RELATIONS
Paul Burroughs
(418) 652-8525 ext. 406
paul.burroughs@aeternazentaris.com
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INVESTOR RELATIONS
Ginette Vallieres
(418) 652-8525 ext. 265
ginette.vallieres@aeternazentaris.com
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EUROPE
Matthias Seeber
+49-6942602-3425
matthias.seeber@zentaris.com
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ATTACHMENT: Financial summary
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[AETERNA LOGO]
FINANCIAL SUMMARY
(in thousands of Canadian dollars, except share and per
share data)
QUARTERS ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
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CONSOLIDATED RESULTS 2004 2003 2004 2003
Unaudited $ $ $ $
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REVENUES 53,541 48,896 233,248 166,413
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OPERATING EXPENSES
Cost of sales 31,679 30,892 134,535 98,048
Selling, general and administrative 11,699 9,563 42,198 29,103
R&D costs, net of tax credits and grants 7,088 12,307 30,367 44,124
Depreciation and amortization 2,211 2,568 8,978 9,421
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52,677 55,330 216,078 180,696
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Operating income (loss) 864 (6,434) 17,170 (14,283)
Interest income 359 486 1,359 2,146
Interest and financial expenses (2,147) (1,348) (8,168) (4,835)
Foreign exchange gain (loss) (556) ( 310) (920) ( 1,574)
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INCOME (LOSS) BEFORE THE FOLLOWING ITEMS (1,480) (7,606) 9,441 (18,546)
Current income taxes 44 (307) (13,699) (3,859)
Future income taxes 325 (372) 5,414 (2,073)
Loss on dilution (96) - (631) (64)
Non-controlling interest (1,336) (969) (6,284) (3,605)
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NET LOSS FOR THE PERIOD (2,543) (9,254) (5,759) (28,147)
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Basic and diluted net loss per share (0.06) (0.20) (0.13) (0.65)
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Weighted average number of shares
Basic 45,650,742 45,330,992 45,569,176 42,993,432
Diluted 46,124,784 45,706,644 45,986,629 43,112,385
Issued and outstanding shares 45,670,909 45,330,992
DECEMBER 31, DECEMBER 31,
CONSOLIDATED BALANCE SHEETS 2004 2003
$ $
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Cash and short-term investments 58,090 64,367
Other current assets 86,644 70,278
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144,734 134,645
Long-term assets 204,494 161,134
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Total assets 349,228 295,779
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Current liabilities 72,265 61,442
Deferred revenues 25,557 10,563
Convertible term loans 24,890 19,920
Long-term debt 39,365 15,132
Other long-term liabilities 32,092 32,649
Non-controlling interest 34,767 29,952
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228,936 169,658
Shareholders' equity 120,292 126,121
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Total liabilities and shareholders' equity 349,228 295,779
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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: February 28, 2005 By: /s/Mario Paradis
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Mario Paradis
Senior Finance Director and
Corporate Secretary