Aeterna Zentaris Inc. (AEZS) generated net proceeds of $13.7 million from its public offering of 13.1 million units. Each unit consists of one common share and one whole warrant to purchase one common share, at a purchase price of $1.15 per unit. Each warrant is exercisable at $1.60 per share for a period of five years. The offering commenced on Nov 19, 2013 and was priced at $1.15 next day.
The net proceeds from these offerings will be used by the company to finance its research and development activities, including the development of the candidates, AEZS-108 and AEZS-130. The balance will be used for general corporate purposes and working capital requirements.
The company is dosing patients in its phase III study on AEZS-108 (zoptarelin doxorubicin) for the treatment of endometrial cancer in women who are not responding to platinum/taxane-based chemotherapy. We note that AEZS-108 is being evaluated under the U.S. Food and Drug Administration’s (:FDA) Special Protocol Assessment (SPA) in the phase III trial.
The open-label, randomized, multi-center (North America, Europe, Israel and other countries), phase III trial will enroll approximately 500 patients. The primary efficacy endpoint of the trial is significant improvement in median overall survival.
AEZS-108 is also being evaluated for several other indications including ovarian cancer (phase II completed), prostate cancer (phase II), and breast cancer (phase II)
On Nov 5, 2013, Aeterna Zentaris announced that it has submitted a New Drug Application (:NDA) to the FDA for AEZS-130 for treating adult growth hormone deficiency.
Aeterna Zentaris carries a Zacks Rank #1 (Strong Buy). Investors may also consider companies like Actelion Ltd. (ALIOF), Jazz Pharmaceuticals (JAZZ) and AMAG Pharmaceuticals Inc. (AMAG), which carries a Zacks Rank #1.