Dr. Klaus Paulini reports

AETERNA ZENTARIS REPORTS FIRST QUARTER 2023 FINANCIAL RESULTS

Aeterna Zentaris Inc. has released its financial and operating results for the quarter ended March 31, 2023.

"Our team remains focused on driving enrolment for our ongoing Detect trial in addition to discussions with alternate development and commercialization partners for macimorelin in the [United States] and other territories not currently partnered," commented Dr. Klaus Paulini, chief executive officer of Aeterna. "We have made solid progress with our development programs, and are approaching additional pre-established go/no-go milestones related to the advancement of our pipeline and, importantly, have a strong cash position to fund these efforts. We continue to set the stage for opportunities that we believe will drive value for shareholders throughout this year."

Summary of first quarter 2023 financial results

All amounts are in U.S. dollars.

Cash and cash equivalents

The company had $46.6-million in cash and cash equivalents at March 31, 2023.

Results of operations for the three-month period ended March 31, 2023

For the three-month period ended March 31, 2023, the company reported a consolidated net loss of $4.3-million, or an 88-cent loss per common share (basic), as compared with a consolidated net loss of $2.6-million, or a 54-cent loss per common share (basic) for the three-month period ended March 31, 2022. The $1.7-million increase in net loss is primarily from a $1.6-million increase in research and development expenses, a $400,000 increase in selling, general and administrative expenses, and a $300,000 decrease in gain (loss) due to changes in foreign currency offset by a $600,000 increase in revenues.

Revenues:

• Its total revenue for the three-month period ended March 31, 2023, was $2.1-million as compared with $1.5-million for the same period in 2022, representing an increase of $600,000. The increase is due to an increase in licence fees of $300,000 and development service revenue of $400,000 due to the increase in Detect trial expenses, offset by a $100,000 decrease in the remaining line of services from the previous period.

Operating expenses:

• Its total operating expenses for the three-month period ended March 31, 2023, were $6.3-million as compared with $4.3-million for the same period in 2022, representing an increase of $2.0-million. This increase arises primarily from a $1.6-million increase in research and development expenses, and a $400,000 increase in selling, general and administrative expenses.

Consolidated financial statements and management's discussion and analysis

For reference, management's discussion and analysis of financial condition and results of operations for the first quarter 2023, as well as the company's unaudited interim condensed consolidated financial statements as of March 31, 2023, will be available on the company's website in the investors section or at the company's profile at SEDAR and the Securities and Exchange Commission website.

About Aeterna Zentaris Inc.

Aeterna is a specialty biopharmaceutical company, developing and commercializing a diversified portfolio of pharmaceutical and diagnostic products focused on areas of significant unmet medical need. The company's lead product, macimorelin (Macrilen; Ghryvelin), is the first and only U.S. Food and Drug Administration- and European Commission-approved oral test indicated for the diagnosis of adult growth hormone deficiency (AGHD). The company is leveraging the clinical success and compelling safety profile of macimorelin to develop it for the diagnosis of childhood-onset growth hormone deficiency (CGHD), an area of significant unmet need.

Aeterna is dedicated to the development of its therapeutic asset and has established a preclinical development pipeline to potentially address unmet medical needs across a number of indications, including neuromyelitis optica spectrum disorder (NMOSD), Parkinson's disease (PD), hypoparathyroidism and amyotrophic lateral sclerosis (ALS, Lou Gehrig's disease).

We seek Safe Harbor.