Dr. Klaus Paulini reports

AETERNA ZENTARIS REPORTS THIRD QUARTER 2022 FINANCIAL RESULTS

Aeterna Zentaris Inc. has released its financial and operating results for the third quarter ended Sept. 30, 2022.

"Our priorities remain advancing our preclinical and clinical studies and aiming to explore all options for our Macrilen asset," commented Dr. Klaus Paulini, chief executive officer of Aeterna.

Recent highlights:

• Announced the company will regain full rights to Macrilen for the United States and Canada, following Novo's termination of the development and commercialization licence agreement, which termination will become effective May 23, 2023. Until then, Novo is expected to continue to commercialize Macrilen and finance the cost for the continuing pivotal pediatric phase 3 Detect trial. The company is actively engaged in exploring all options for Macrilen;
• Entered into a sponsored research agreement with Massachusetts General Hospital to further evaluate the company's targeted, highly specific immunosuppressive therapeutic proteins (AIM Biologicals) in preclinical research for the potential treatment of neuromyelitis optica spectrum disorder.

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

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

For the three-month period ended Sept. 30, 2022, Aeterna reported a consolidated net loss of $3.4-million, or 70-cent loss per common share (basic), compared with a consolidated net loss of $1.9-million, or 40-cent loss per common share (basic) for the three-month period ended Sept. 30, 2021. The $1.5-million increase in net loss is primarily the result of $800,000 higher revenues, offset partially by an increase in operating expenses of $2.5-million primarily due to a $1.8 increase in research and development, a $900,000 increase in general and administrative expenses, offset by a $200,000 decrease in selling expenses, and an increase of $200,000 in net finance income.

Revenues:

• Total revenue for the three-month period ended Sept. 30, 2022, was $1.9-million, an increase of $800,000 from $1.1-million in the same period in 2021. Quarterly revenue comprised $600,000 in licensing revenue (2021 -- $300,000), $1.2-million in development revenue (2021 -- $700,000), $40,000 in supply chain revenue (2021 -- $60,000) and $10,000 in royalty income (2021 -- $20,000).

Operating expenses:

• Total operating expenses for the three-month period ended Sept. 30, 2022, was $5.6-million compared with $3.1-million for the same period in 2021, representing an increase of $2.5-million. This increase was primarily due to a $1.8-million increase in research and development, $900,000 increase in general and administrative expenses, offset by a $200,000 decrease in selling expenses.

Net finance income (cost):

• Net finance income (costs) for the three-month period ended Sept. 30, 2022, was $300,000 compared with net finance income (costs) of $100,000 for the same period in 2021, representing an increase in net finance income of $200,000.

The company had $53.8-million cash and cash equivalents at Sept. 30, 2022 (Dec. 31, 2021 -- $65.3-million).

Consolidated financial statements and management's discussion and analysis

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 Sept. 30, 2022, will be available on the company's website in the investors section or at the company's profile on SEDAR.

About Aeterna Zentaris Inc.

Aeterna Zentaris 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 Zentaris 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; 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.