Dr. Klaus Paulini reports

AETERNA ZENTARIS REPORTS SECOND QUARTER 2023 FINANCIAL RESULTS

Aeterna Zentaris Inc. has released its financial and operating results for the quarter ended June 30, 2023.

"Our continued progress advancing the company's development and regulatory strategies are evolving and designed to provide us with a pathway towards the company's first-in-human clinical studies with the company's lead indication, neuromyelitis optica spectrum disorder (NMOSD). Further, we established solid traction with the company's ongoing DETECT trial and are working towards meeting the company's goal of completing enrolment by year's end," commented Dr. Klaus Paulini, chief executive officer of Aeterna. "Importantly, we have maintained a strong cash position to enable us to continue the company's strategy."

Summary of second quarter 2023 financial results

All amounts are in United States dollars.

Cash and cash equivalents

The company had $42.2-million in cash and cash equivalents at June 30, 2023.

Results of operations for the three-month period ended June 30, 2023, for the three-month period ended June 30, 2023, the company reported a consolidated net loss of $2.5-million, or 52 cents loss per common share (basic and diluted), as compared with a consolidated net loss of $4.2-million, or 87 cents net loss per common share (basic) for the three-month period ended June 30, 2022.

Revenues

• The company's total revenue for the three-month period ended June 30, 2023, was $2.2-million as compared with ($200,000) for the same period in 2022, representing an increase of $2.4-million. The increase was due primarily to an increase in licence fee revenue recognized of $1.0-million and development services revenue of $1.4-million relating to the company's amended agreement with Novo Nordisk Healthcare.

Operating expenses

• The company's total operating expenses for the three-month period ended June 30, 2023, were $5.1-million as compared with $4.5-million for the same period in 2022, representing an increase of $600,000. This increase arose from a $500,000 increase in research and development expenses, primarily related to the company's DETECT trial, and a $100,000 increase in cost of sales.

Net finance income

• For the three-month period ended June 30, 2023, the company's net finance income was $300,000 as compared with $500,000 for the three-month period ended June 30, 2022, representing a decrease of $200,000. This decrease was the result of a $500,000 decrease in gains due to changes in foreign currency rates offset by a $300,000 increase in interest income.

Results of operations for the six-month period ended June 30, 2023

For the six-month period ended June 30, 2023, the company reported a consolidated net loss of $6.8-million, or $1.39 loss per common share (basic and diluted), as compared with a consolidated net loss of $6.9-million, or $1.41 net loss per common share (basic) for the six-month period ended June 30, 2022.

Revenues

• The company's total revenue for the six-month period ended June 30, 2023, was $4.4-million as compared with $1.3-million for the same period in 2022, representing an increase of $3.1-million. The increase was primarily due to an increase in licence fee revenue recognized of $1.3-million and development services revenue of $1.9-million relating to the company's amended agreement with Novo Nordisk Healthcare, offset by a $100,000 decrease in product sales.

Operating expenses

• The company's total operating expenses for the six-month period ended June 30, 2023, were $11.4-million as compared with $8.8-million for the same period in 2022, representing an increase of $2.6-million. This increase arose from a $2.1-million increase in research and development expenses, primarily related to the company's DETECT trial and the company's AEZS-130 Macimorelin ALS project, increases of $400,000 in selling, general and administrative expenses, and a $100,000 increase in cost of sales.

Net finance income

• For the six-month period ended June 30, 2023, the company's net finance income was $300,000 as compared with $700,000 for the six-month period ended June 30, 2022, representing a decrease of $400,000. This decrease was the result of a $700,000 decrease in gains due to changes in foreign currency rates offset by a $300,000 increase in interest income.

Consolidated financial statements and management's discussion and analysis

For reference, the company's management's discussion and analysis of financial condition and results of operations for the second quarter 2023, as well as the company's unaudited consolidated interim financial statements as of June 30, 2023, will be available on the company's website in the investors section or at the company's profile on 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, Parkinson's disease, hypoparathyroidism and amyotrophic lateral sclerosis (Lou Gehrig's disease).

We seek Safe Harbor.