Company ended the quarter with $29.5 million in cash
DETECT-trial recruitment completed; Company continues to expect the completion of the trial in the second quarter and top-line data in the third quarter of 2024
All-stock merger of equals transaction with Ceapro Inc. expected to close in the second quarter of 2024
TORONTO, ONTARIO, May 14, 2024 (GLOBE NEWSWIRE) -- Aeterna Zentaris Inc. (NASDAQ: AEZS) (TSX: AEZS) ("Aeterna" or the "Company"), a specialty biopharmaceutical company developing and commercializing a diversified portfolio of pharmaceutical and diagnostic products, today reported its financial and operating results for the quarter ended March 31, 2024.
Mr. Giuliano La Fratta, Chief Financial Officer of Aeterna commented, "This year remains exciting for Aeterna. Our cash position remains strong and we continue to be on track to complete both the DETECT-trial and the previously announced merger with Ceapro Inc. ("Ceapro") in the second quarter."
Summary of First Quarter 2024 Financial Results
All amounts are in U.S. dollars.
Cash and cash equivalents
The Company had $29.5 million in cash and cash equivalents at March 31, 2024.
Results of operations for the three-month period ended March 31, 2024
For the three-month period ended March 31, 2024, we reported a net loss of $5.8 million, or $4.74 loss per common share, as compared with a net loss of $4.3 million, or $3.51 loss per common share (basic) for the three-month period ended March 31, 2023. The $1.5 million increase in net loss is primarily due to a $2.1 million decrease in revenue combined with a $1.2 million increase in selling, general and administrative expenses, mostly due to non-recurring expenses incurred for the anticipated merger. This was offset by a $1.4 million decrease in research and development expenses and a $0.4 million increase in net finance income.
Revenues
Our total revenue for the three-month period ended March 31, 2024, decreased by $2.1 million. The decrease was due to the termination of the Company's amended agreement with Novo Nordisk Healthcare in May 2023 and as a result, no license fee or development services revenue was recognized in Q1, 2024.
Operating Expenses
Our total operating expenses for the three-month period ended March 31, 2024, was $6.1 million as compared with $6.3 million for the same period in 2023, representing a decrease of $0.2 million. This decrease was primarily from a $1.4 million decrease in research and development expenses offset by a $1.2 million increase in the selling, general and administrative expenses.
Consolidated Financial Statements and Management's Discussion and Analysis
For reference, the Management's Discussion and Analysis of Financial Condition and Results of Operations for the first quarter 2024, as well as the Company's consolidated financial statements as of March 31, 2024, will be available on the Company's website () in the Investors section or at the Company's SEDAR+ and EDGAR profiles at and www.sec.gov, respectively.
About Macimorelin (Macrilen; GHRYVELIN)
Macimorelin, an oral drug used for the diagnosis of adult growth hormone deficiency (AGHD) is approved for marketing under the brand name GHRYVELIN in the European Economic Area and Macrilen in the United States. In addition, Aeterna Zentaris is currently conducting the Phase 3 safety and efficacy study AEZS-130-P02 (the "DETECT-trial") evaluating macimorelin for the diagnosis of childhood-onset growth hormone deficiency (CGHD).
Macimorelin (Macrilen; GHRYVELIN), a ghrelin receptor agonist, is an orally active peptidomimetic molecule that stimulates the secretion of growth hormone from the pituitary gland. Stimulated growth hormone levels are measured in blood samples taken after oral administration of macimorelin for the assessment of AGHD. Approval of macimorelin for use in adult was granted by the FDA in 2017 and by the EMEA in 2019, based on Phase III data showing that oral macimorelin provides accuracy comparable to that of standard insulin tolerance testing (ITT), but has a more favorable safety profile compared to ITT. Oral macimorelin also reduces false positive test results, helping to avoid unnecessary treatment of patients.