LOGO OF
AETERNA LABORATORIES INC.
PRESS RELEASE
For Immediate Release
AEterna Laboratories reports second quarter results
QUEBEC CITY, QUEBEC, JULY 18, 2001 -AEterna Laboratories Inc. (NASDAQ: AELA,
TSE: AEL) reported today its results for the three-month period ended
June 30, 2001.
Sales for Atrium Biotechnologies Inc., a subsidiary of AEterna, increased by 32%
during this second quarter, reaching $2.7 million* compared to $2 million for
the same period last year. This increase is mainly due to sales of value-added
nutritional products which more than doubled on the Asian market as well as
revenues generated by its subsidiary Atrium Biotech USA. Established in October
2000, the subsidiary markets a line of nutrition supplement products.
AEterna's Research and Development investments reached $6.7 million in
comparison to $4.9 million during the same quarter of 2000. This well reflects
the company's increased efforts 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.
During the second quarter, the Company registered net earnings of $7.5 million,
or $0.25 per share, compared to a net loss of $1.7 million or $0.06 per share
for the quarter ended June 30, 2000. Net earnings include a gain on dilution of
$10.2 million which was posted following an amendment in May 2001 of Atrium
Biotechnology Inc. Shareholders' Agreement.
AEterna maintains a solid financial situation with more than $60 million in cash
and short-term investments as of June 30, 2001. Furthermore, the Company has
access to $15 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.
"The overview of both our activities of the last quarter and financial results
show our continued progression towards the realization of our corporate goal
which is to be among the first to bring to market an angiogenesis inhibitor
against cancer," said Dr. Eric Dupont, President and Chief Executive Officer at
AEterna.
"During the last few months, Atrium has displayed a lot of maturity for such a
young company through its increased sales here and abroad and its recent
acquisition of Unipex," underlined Pierre Laurin, PhD, Chairman of the Board of
Atrium. " It also sets the standard for Atrium's future growth strategy which
includes an eventual listing of the company's shares on the stock market, thus
gaining access to additional capital for future acquisitions at the
international level," concluded Mr. Laurin.
OVERVIEW OF SECOND QUARTER ACTIVITIES:
CLINICAL DATA
PROSTATE CANCER
o Results from a Phase I/II clinical study in patients suffering
from metastatic refractory prostate cancer were presented at the
Annual Meeting of the Canadian Urological Association. The study
corroborates results from prior Phase I/II clinical trials which
demonstrated Neovastat's safety profile and dose-related activity.
Results of the study showed no dose-limiting toxicity, excellent
patient compliance while improved conditions or disease
stabilization were noted in patients as indicated by Prostate
Specific Antigen (PSA) levels.
PATIENT RECRUITMENT
o Patient recruitment in the Phase III trial in renal cell carcinoma
is more than half completed. Led by an international team of
oncology experts, the trial which involves 280 patients, is being
conducted at some 50 investigative centres in Canada, the U.S.,
and Europe.
o Patient recruitment for the pivotal Phase II trial on progressive
multiple myeloma continues in some 35 investigative centres in
Canada, the U.S., and Europe. The study is progressing according
to schedule, and aims at evaluating the efficacy of Neovastat as a
monotherapy treatment for some 120 patients who do not respond to
standard therapies.
SCIENTIFIC DATA
NEW MECHANISM OF ACTION
o AEterna presented new data showing that Neovastat/AE-941 is able
to increase the level of angiostatin in mice with implanted human
glioblastoma, a form of brain cancer. Data on this additional
mechanism of action of Neovastat were presented at the American
Society of Clinical Oncology (ASCO) Annual Meeting.
NEW PATENT
o AEterna discovers potent antiangiogenic activity in a class of
molecules isolated from Neovastat capable of inhibiting the
proliferation of endothelial cells. The Company has filed a patent
application and broadened its intellectual property portfolio to
10 patents.
CORPORATE AFFAIRS
ACQUISITION
o In early July 2001, Atrium Biotechnologies Inc, a subsidiary of
AEterna Laboratories Inc., acquired Unipex, a French company
specializing in value-added services of importation, in supporting
innovation, and in distributing raw materials and high-end
brand-name additives for multinational corporations such as
Bristol Myers-Squibb, Aventis, L'Oreal, Nestle, Danone and Kodak.
The transaction, valued at some $20 million, was financed from
Atrium's cash surplus without any dilution. Atrium therefore
acquires 70% of the Unipex shares while senior Unipex management
retains control of the remaining 30%. Atrium's annual consolidated
sales should be superior to $70 million for the upcoming fiscal
year.
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 140 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$ 0.66)
-30-
FOR MORE INFORMATION, CONTACT:
CANADA USA
Paul Burroughs Investor and Media Relations:
Director of Communications Ms. Lisa Lindberg
AEterna Laboratories Inc. The Investor Relations Group Inc.
Tel.: 418-652-8525, ext. 406 Tel.: 212-736-2650
Fax: 418-577-7700 Fax: 212-736-2610
E-mail: paul.burroughs@aeterna.com E-mail: TheProTeam@aol.com
Attached: Financial Summary
AETERNA LABORATORIES INC. ( TSE: AEL, NASDAQ: AELA)
FINANCIAL SUMMARY
(EXPRESSED IN CANADIAN DOLLARS / CAN$ 1 = US$ 0.66)
QUARTERS ENDED SIX MONTHS ENDED
JUNE 30 JUNE 30
CONSOLIDATED RESULTS 2001 2000 2001 2000
Unaudited $ $ $ $
---- ---- ---- ----
(RESTATED) (RESTATED)
Sales 2,668,000 2,023,000 5,435,000 4,038,000
Operating expenses (1,273,000) (719,000) (2,550,000) (1,472,000)
---------- --------- --------- ---------
Earnings before the following 1,395,000 1,304,000 2,885,000 2,566,000
Research and development 6,676,000 4,858,000 13,890,000 10,333,000
Research tax credits and grants (2,529,000) (1,508,000) (4,571,000) (3,147,000)
Depreciation and amortization 386,000 326,000 762,000 646,000
---------- --------- --------- ---------
Loss before other items (3,138,000) (2,372,000) (7,196,000) (5,266,000)
Interest income 981,000 723,000 2,056,000 1,469,000
Interest expenses (175,000) (11,000) (437,000) (20,000)
Gain on dilution of investment 10,223,000 -- 10,223,000 --
Non-controlling interest (350,000) -- (350,000) --
---------- --------- --------- ---------
Net earnings (loss)
for the period 7,541,000 (1,660,000) 4,296,000 (3,817,000)
========== ========= ========= =========
Net earnings (loss) per share
Basic 0.25 (0.06) 0.14 (0.13)
---------- --------- --------- ---------
Fully diluted 0.24 (0.06) 0.14 (0.13)
---------- --------- --------- ---------
JUNE 30, DECEMBER 31,
CONSOLIDATED BALANCE SHEETS 2001 2000
$ $
---- ----
Cash position 60,467,000 68,649,000
Working capital 67,027,000 70,831,000
Total assets 91,585,000 100,582,000
Long-term debt 4,753,000 4,753,000
Redeemable common shares of the subsidiary -- 24,610,000
Non-controlling interest 10,835,000 --
Shareholders' equity 69,898,000 64,394,000
Deficit 11,318,000 15,614,000
STOCK EXCHANGE INFORMATION AS OF JUNE 30, 2001
Issued and outstanding shares 30.3 million
Fully diluted shares 31.4 million
Market capitalization $346 million
Average daily transactions (6 months) 52,116 shares