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AEterna Zentaris Reports Fourth Quarter and Full-Year 2008 Financial and Operating Results
Date:3/11/2009

ses is mainly related to the continued results of cost-saving measures that were implemented beginning in the second quarter of 2008.

Consolidated research and development ("R&D") expenses were $12.3 million for the quarter ended December 31, 2008, compared to $13.6 million for the same quarter in 2007. The decrease in R&D expenses primarily relates to the comparative reduction in expenses incurred in connection with our Phase 3 program with cetrorelix in BPH, which by the fourth quarter of 2008 was fully enrolled and less subject to larger front-end expenditures that were necessary in the earlier, fourth quarter 2007 stage of the program.

Consolidated net loss was $14.5 million, or $0.27 per basic and diluted share for the quarter ended December 31, 2008, compared to $13.6 million, or $0.26 per basic and diluted share, for the same quarter in 2007. The increase in consolidated net loss is largely attributable to a combination of lower sales and royalties, lower license fee revenues, lower manufacturing margins on Cetrotide(R) due in part to a $0.7 million write-down to net realizable value of certain components of inventory, as well as to higher amortization expense, partly offset by lower quarter-over-quarter SG&A expenses, higher net foreign exchange gains and lower income tax expense.

Consolidated cash, cash equivalents and short-term investments were $49.7 million as at December 31, 2008.

CONSOLIDATED RESULTS FOR THE FULL YEAR ENDED DECEMBER 31, 2008

Consolidated revenues were $38.5 million for the year ended December 31, 2008, compared to $42.1 million for the year ended December 31, 2007. The decrease in consolidated revenues in 2008 compared to 2007 is primarily related to lower sales of Impavido(R), a decrease in consolidated license fee revenues mainly attributable to non-recurring milestone payments and the termination of a partner licensing agreement in 2007, partly offset by an increa
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SOURCE AETERNA ZENTARIS INC.
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