Dr. Klaus Paulini reports

AETERNA ZENTARIS REPORTS SECOND QUARTER 2022 FINANCIAL RESULTS AND RECENT HIGHLIGHTS

Aeterna Zentaris Inc. has released its financial and operating results for the second quarter ended June 30, 2022, and has provided recent highlights.

"Throughout the quarter, we continued to execute against our strategic priorities," said Dr. Klaus Paulini, chief executive officer of Aeterna. "As we look ahead, we are laser focused on building on the positive momentum we've achieved across our therapeutics, diagnostics and vaccine development pipelines, all with an eye towards generating value in the near and long term for our valued stakeholders."

Recent highlights:

• Announced that licensing partner, Consilient Health, launched ghryvelin (macimorelin) for diagnosing adult growth hormone deficiency (AGHD) in Europe;
• Achieved proof of concept for the treatment of neuromyelitis optica spectrum disorder (NMOSD) with AIM Biologicals program in animal experiments;
• Entered into a research and option to license agreement with UniQuest Pty. Ltd., the commercialization company of the University of Queensland (UQ), Brisbane, Australia, to advance the development of macimorelin as a potential therapeutic for the treatment of amyotrophic lateral sclerosis (ALS or Lou Gehrig's disease).

Results of operations for the three-month period ended June 30, 2022

All amounts in this press release are in U.S. dollars unless otherwise noted.

For the three-month period ended June 30, 2022, the company reported a consolidated net loss of ($4.2-million), or an (87-cent) net loss per common share (basic), as compared with a consolidated net loss of ($2.1-million), or a (43-cent) net loss per common share (basic), for the three-month period ended June 30, 2021. The $2.1-million increase in net loss is primarily due to an increase of $700,000 in total operating costs and a $1.8-million decline in total revenues offset by favourable foreign currency exchange rates of $400,000.

Revenues:

• Its total revenue for the three-month period ended June 30, 2022, was ($200,000) as compared with $1.6-million for the same period in 2021, representing a decline of $1.8-million. The 2022 revenue was composed of ($200,000) in licensing revenue (2021: $500,000), ($100,000) in development revenue (2021: $1.0-million), $30,000 in supply chain revenue (2021: $40,000) and $20,000 in royalty income (2021: $200,000).
• The negative revenue balances for the quarter are driven by revenue reversals associated with the Detect project. Using management's best estimate, the company determined the additional overall costs associated with the project and its effect on the accounting treatment from a revenue recognition perspective. These additional costs are attributed to the Ukraine/Russia conflict and its delays on the project, reducing the amount of revenue recordable within the quarter.

Operating expenses:

• The total operating expense for the three-month period ended June 30, 2022, was $4.5-million as compared with $3.7-million for the same period in 2021, representing an increase of $800,000. This increase arose primarily from $600,000 in research and development and a $200,000 increase in general and administrative expenses.

Net finance (costs) income:

• The net finance (costs) for the three-month period ended June 30, 2022, was $500,000 as compared with net finance income of $100,000 for the same period in 2021, representing an increase in net finance income of $400,000.

The company had $58.2-million in cash and cash equivalents at June 30, 2022 (Dec. 31, 2021: $65.3-million).

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 second quarter, as well as the company's unaudited consolidated interim financial statements as of June 30, 2022, 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.

Nasdaq update

The company is pleased to announce that, on Aug. 3, 2022, the company received a notice of compliance from Nasdaq, confirming the company's continued listing on Nasdaq. As previously announced to shareholders, notwithstanding the successful completion of the company's share consolidation on July 21, 2022, due to the timing of the share consolidation, the company did not meet the minimum bid requirement that required the company's common shares to trade above $1 per share for a minimum of 10 trading days on or before July 25, 2022. As a result of this technical non-compliance, the company had received notice of delisting on July 28, 2022. The compliance notice confirms that the company is currently in compliance with those Nasdaq listing requirements.

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, in collaboration with Novo Nordisk.

Aeterna is dedicated to the development of therapeutic assets, and has recently taken steps to establish a growing preclinical 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 or Lou Gehrig's disease). Additionally, the company is developing an oral prophylactic bacterial vaccine against SARS-CoV-2 (COVID-19) and chlamydia trachomatis.

We seek Safe Harbor.